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Did you know that turnover thresholds for Employment Equity have been amended?

by , 13 March 2014
If you think it's only the definition of 'designated groups' that's been amended in the latest changes to the Employment Equity Act (EE Act), you're wrong. Turnover thresholds have also changed. Read on to find out how this affects you!

The EE Act has this to say regarding turnover thresholds

The EE Act talks about designated employers and designated groups.

In this article, we explained how the amendments to the EE Act now define designated groups.

We also mentioned that if you're a designated employer, you must put AA measures in place to make sure designated groups are equally represented in your company.

This is where turnover thresholds come in.

Labour Net explains that the turnover thresholds applicable to companies with fewer than 50 employees, found in Schedule 4 of the Act, which is used as one of the criteria to determine whether an employer is designated, have been amended.

This has been done to take into account inflationary adjustments since the Act was first promulgated in 1998.

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Here's a breakdown of the turnover thresholds in terms of the Employment Equity Act

Labour Net outlines the new turnover thresholds:

#1: #2: Sector: Agriculture
Old threshold (Total annual turnover) - R2 million
New threshold (Total annual turnover) - R6 million

#2: Sector: Mining and quarrying
Old threshold
(Total annual turnover) - R7.7 million
New threshold (Total annual turnover) - R22.5 million

#3: Sector: Manufacturing
Old threshold (Total annual turnover) - R10 million
New threshold (Total annual turnover) - R30 million

#4: Sector: Electricity, Gas and Water
Old threshold (Total annual turnover) - R10 million
New threshold (Total annual turnover) - R30 million

#5: Sector: Construction
Old threshold (Total annual turnover) - R5 million
New threshold (Total annual turnover) - R15 million

#6: Sector: Retail and motor trade and repair services
Old threshold (Total annual turnover) - R15 million
New threshold (Total annual turnover) - R45 million

#7: Sector: Wholesale trade, commercial agents and allied services
Old threshold (Total annual turnover) - R25 million
New threshold (Total annual turnover) - R75 million

#8: Sector: Catering, accommodation and other trade
Old threshold (Total annual turnover) - R5 million
New threshold (Total annual turnover) - R15 million

#9: Sector: Transport, storage and communications
Old threshold (Total annual turnover) - R10 million
New threshold (Total annual turnover) – R30 million

#10: Sector: Finance and business services
Old threshold (Total annual turnover) - R10 million
New threshold (Total annual turnover) – R30 million

#11: Sector: Community, special and personal services
Old threshold (Total annual turnover) - R5 million
New threshold (Total annual turnover) – R15 million

Remember that when determining whether or not you're a designated employer, turnover thresholds come into play. So make sure you comply now that you know the new thresholds.

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