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Four new EE Regulations you must know about to be 100% EE compliant and avoid fines of up to R2.7 million

by , 11 February 2015
Most employers don't know about the new Employment Equity (EE) Regulations that came into effect in August last year. They're still trying to get to grips with last year's amended Employment Equity Act (EE Act).

This is unfortunate because EE Regulations are a key part of the recently updated EE Act. The Regulations are the tools you must use to plan and report on employment equity correctly.

Not knowing these regulations means you run the risk of not being 100% EE compliant. And you know what that means: Fines of up to R2.7 million or 10% of your turnover.

Don't take that risk!

Here are the four important EE Regulations you need to know about to comply.

The DoL could fine you up to R2.7 million if you aren't EE compliant! But you can avoid this if you know about these four EE Regulations

The EE Regulations you need to know include the:
1. EEA1: Employee Declaration
This is the form you use to get demographic information from your employees. It will help you find out which of your employees are from designated groups.
After your employees complete this form, you must use the information to analyse your workforce profile. And then load the information onto your payroll.
To make things easier, include an EEA1 in your induction pack. This way, all your new employees can simply complete it when they join your company.
Just remember to keep the contents of this form confidential. You can only use the information to comply with the EE Act and not for any other purpose.
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Don't let the new Employment Equity amendments be the reason the DoL comes after you

There are still many employers who don't know exactly what the new 26 amendments are or even how to apply them.

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.

Click here to find out what you need to do to comply and avoid penalties from the DoL
2. EEA2: Report to the Director-General
You must complete this form when you submit your annual Employment Equity report to the Department of Labour.
Here are the details you must provide when you complete your EEA2:
  • Your company details;
  • The 12 months you're reporting on;
  • The duration of your current EE Plan;
  • Your workforce profile;
  • Your workforce movement. For example, recruitment, promotions, terminations, etc;
  • Skills development when it comes to affirmative action;
  • Numerical goals and targets;
  • EE consultations;
  • Barriers and affirmative action measures;
  • Monitoring and evaluations of EE implementation; and
  • The signature of the CEO or Financial Director.
3. EEA3: Summary of the Act
This is a summary of the EE Act and its amendments.
You must give your employees a copy of the EEA3 so they understand your obligations to them in terms of employment equity, their employment equity rights and duties.
Bear in mind that even if you distribute the EEA3 to all your employees, you still have to display a summary of the Act in your company.
You can get the summaries of all the Acts you must display, here.
4: EEA5: Request for Undertaking
A labour inspector will use this form if he finds you're not complying with employment equity.
The EEA5 is his way to get a written undertaking (Section 36 of EE Act). This means you agree to do what he tells you to comply with the Act.
Where necessary, the inspector can help you complete the form. He'll also keep the form as proof that you officially agree to comply with the EE Act.
If you don't comply, the Director-General can apply to the Labour Court to turn this undertaking into an order. This means the courts can force you to comply and fine you as well.
Overall, there are 14 EE Regulations you need to know about. To find out about the other 10, check out the Practical Guide to Human Resources Management so you can be 100% EE compliant and avoid fines of up to R2.7 million.

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