The 26 changes to the Employment Equity Act are in full force. And, if you aren't complying, you could face fines of up to 10% of your annual financial turnover.
In fact, in a previous Bulletin, Janine told us about the increase in the number of Director-General audits this year compared to the same timeframe last year...
And since an EE audit can prove a nightmare for your business if it uncovers the areas you aren't complying, I want to give you six ways to make sure you don't face the fines!
Six practical ways to make sure you're 100% compliant…
If you don't comply with them, the Department of Labour (DoL) will be on your case. In fact, the DoL could fine you 10% of your turnover or up to R2.7 million!
Now 10% may not seem like a lot, but if your annual turnover is R6 million, you'd be liable to pay the DoL R600,000 for each area of non-compliance!
And if you're non-compliant with five of the changes that could be cost you R3 million. Can you afford to pay such a hefty fine?
That's a lot of money to fork out for something that you can avoid.
But let me show you six practical ways to make sure you're complying…
Don't let the 26 new Employment Equity amendments be the reason the DoL comes after you
If you employ more than 50 people or if your turnover is over the Employment Equity Act threshold for your industry, you need to comply with each and every one of them.
Now 26 changes is a big task.
And that's why FSP Business has teamed up with Employment Equity expert Janine Nieuwoudt to help you implement the new amendments to the Employment Equity Act in your company today.
Find out more here
Here's what you need to do…
1.Conduct a full in-house EE audit
If you have the time and resources, this is the best way to make sure you implement the changes quickly. A full EE audit will show you exactly where you need to make changes to your EE initiatives or where you need more detail in your EE Plan. This shows you where you need to up your game.
2. Involve your EE Committee
If you don't have the man-power or the time to tackle all of these changes yourself, get your EE Committee involved! Assign each person an area to tackle. Give them time to evaluate your company's EE compliance in their area. Make sure everyone reports back at the next committee meeting with what they find, and what they suggest.
3. Plan the implementation
You must implement quite a few changes, so it's often helpful to break the project down into smaller chunks. Create a project plan listing the changes you must make to be compliant. Then set timelines for changes and revisions to be completed. Assess which of your adjustments and revisions are the most time-consuming and get support from others to assist you.
4. Focus on your EE Plan
Some of the biggest changes are to do with your EE Plan. If you don't have an EE Plan or if your EE Plan is about to expire and you need to develop a successive plan, then this is the place to begin.
Make sure your new EE Plan contains the detailed information that the new amendments
require. Once your EE Plan is up and running, you can switch your focus to making sure you have the compliance that goes with it.
5. Start the necessary assessments
The new requirements mean you'll have to start assessing how your company is doing things, especially in terms of potential unfair discrimination.
These assessments will delve into more depth, monitor and measure how you're doing in terms of how you're implementing the changes and how far you've come.
The new legislation requires you to develop and implement step-by-step plans that will address each of these areas to ensure that your Employment Equity efforts are actually working. Keep detailed plans of what you'll do and the timeframes for each step.
6. Come to our Employment Equity Workshop
Over the past few years we made EE a breeze for hundreds of companies. And this year we aim to do it again.
Once again we have secured the top EE expert, Janine Nieuwoudt, to answer all your questions on EE Plans and Reports… And give you guidance on how the recent changes to the EE Act will affect you. We'll also look at the impact of the new EE Regulations.