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Employment Equity Act change: What does 'EE steps and measures' mean?

by , 21 June 2016
Employment Equity Act change: What does 'EE steps and measures' mean?The Employment Equity Act amendments are still causing quite a lot of concern for employers.

The provisions mean you'll now have to increase your efforts to not only get more diversity into your organisation, but also actively eliminate unfair discrimination in all areas of work.

On top of this, you also have to thrash out exactly how you plan to do it. Then add that level of detail to your EE Plans.

But what does the requirement regarding 'EE steps and measures' mean?

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The amendments require you to define specific steps and measures that detail how you'll implement employment equity in your company. You then need to include the detail in your EE Plan(s).
 

In the past, many companies made broad statements like this in their EE Plan:


'We will train previously disadvantaged employees' OR
'We will implement a new graduate recruitment programme' OR
'We will ensure that managers treat all employees fairly'.

These statements will not meet the new EE requirements.

Government has tightened these provisions and want your EE Plan to detail specific actions, for each year of your Plan.


You must include details like:

·         What you'll do;
·         Step-by-step breakdown on how you'll do this;
·         Who'll actually be doing it; and
·         When you'll actually do it.
·         You must include a calendar of events or milestones.

To make sure you comply with these provisions, the amendments make it compulsory for all designated employers, no matter what size, to now report annually on their EE progress.

The DoL is also increasing the number of inspectors, widening their powers and scheduling more DoL audits to actively seek out non-compliance.

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So, what will happen if you don't comply with the new provisions?

The fines for non-compliance have increased

Any employee who contravenes the provisions can personally be fined up to R30 000 per contravention. Companies can expect a minimum fine of R1.5 million or 2% of annual turnover to a maximum of R2.7 million or 10% of their turnover. This is per incidence of non-compliance, per provision!

These steep penalties could certainly mean bankruptcy for many companies, so it really is in your company's best interests to get compliant now.

Don't wait until it's too late, it takes more time than you may think to get all the legal requirements in place. Take immediate action - your company's future may depend on it!

Book now for our Employment Equity Summit! We'll show you exactly how to implement the new EE Act changes and new EE Act regulations, and we even discuss real-life case law and implementation!

Book your seat at www.eesummit.co.za.
 
P.S. Attend the EE Summit 2016 so you'll avoid the new steep fines of up to R2.7 million per instance non-compliance in your EE implementation


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