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If you fail to comply with the Employment Equity Act, you'll face these penalties

by , 12 August 2014
Not so long ago, government amended the Employment Equity Act (EE Act). The amended Act became effective on 1 August 2014.

What does this mean for you?

It means you have to make sure you're in line with the amended Act and the original Act (Employment Equity Act, 55 of 1998), to achieve employment equity in your workplace.

If you don't comply with the EE Act, these are the penalties you'll face...


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Failure to comply with the EE Act will result in these penalties
 

According to Janine Nieuwoudt, the Editor in Chief of the Practical Guide to Human Resources Management if you don't comply with the
EE Act,
 

  • You'll personally face fines of up to R30 000 per contravention; and
  • Your company will face fines from a minimum of R1.5 million or 2% of annual turnover to a maximum of R2.7 million or 10% of your turnover – per incidence of non-compliance, per provision!


The stakes are really high if you fail to comply with the EE Act, says Lauren Salt from the law firm Cliffe Dekker Hofmeyr.

'What's scary to note is that if you don't comply with the Employment Equity Act, your turnover could be taken into account when your fine is determined,' warns Salt.

In this tough economy, such a fine could lead to bankruptcy.

So make sure your company complies with the amended EE Act and the original Act to achieve employment equity. It's the only way to avoid steep penalties.

Labour Net's Greg Kowalik sums it up well when he says: 'Not only has dealing with the adverse effects of past discrimination become a social imperative, but compliance with employment equity legislation has now, more than ever, become a business imperative.'
 

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