Breaking provisions of the EE Act will get you a fine! Never commit these nine offences
According to the Labour Law for Managers Loose Leaf Service
, the main offences for which companies receive fines include:
Not appointing a Senior Manager to take responsibility for Employment Equity;
Not having an Employment Equity Plan (EE Plan).
Not having a consultative forum or not consulting correctly in terms of the requirements of the EE Act.
(To get a full breakdown of what the EE Act
says about the consultation process, check out this article.
Not conducting a workplace analysis;
Not identifying and implementing Affirmative Action measures;
Not setting realistic targets and goals when it comes to employment equity;
Having invalid reasons for not achieving Affirmative Action targets and goals;
Not submitting an Employment Equity Report (EE report); and
Not training staff on these three key areas: HIV/Aids in the workplace, cultural sensitivity and sexual harassment.
If your company does business with an organ of the state and you don't comply with the EE Act
, penalties aren't the only thing you'll get…
Keep reading to find out.
*********** Advertisement ************
There are 26 changes to the Employment Equity Act you must comply with in 2014...
If you don't comply with them, the DoL will be on your case.
In fact, the DoL could fine you 10% of your turnover or up to R2.7 million!
Discover how to check if you're complying with all of them to avoid crippling DoL fines.
You'll lose business if you don't comply with the EE Act
According to Grant Thornton,
an organ of state is:
A national or provincial government department;
A constitutional institution;
A provincial legislature.
So if you conduct business with any of these entities and fail to adhere to the Act, you won't be able to get a tender to provide goods or services to any state institution. They will ignore your application because you don't have a certificate of compliance.
Not sticking with the provisions of the EE Act is serious and costly
To avoid the wrath of the DoL, do the following to comply with the EE Act:
I strongly recommend you check out the Employment Equity Act Compliance Toolkit.
It explains these points in detail and tells you exactly what you need to do to comply with the EE Act.
The bottom line: Fines of up to R2.7 million could lead to bankruptcy. Now that you know about these offences, never commit any of them.