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Newsflash: This controversial employment equity regulation is off the table

by , 30 May 2014
If you're one of our regular readers, you'd have seen our reports at the beginning of the year about the Employment Equity Act draft regulations.

The latest on the draft regulations is that the Department of Labour (DoL) has scrapped the controversial regulation that calls for employers to apply national demographics when hiring.

Read on to find out what this means for you as an employer.

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What you need to know about controversial employment equity regulation

iol reports that on Wednesday, labour spokesman Musa Zondi, said the clause stipulating required national demographics to be applied even in provinces (Western Cape and KwaZulu-Natal) where population profiles are different had been withdrawn.

The DoL says the move follows negotiations from the government, labour and business negotiating chamber, Nedlac.

But the provisions of the Act are still in place.

In March, we reported that the Employment Equity Act draft regulations state that when determining targets, companies that employ more than 150 people have to use:
 

  • The 'national economically active population' demographics for three upper levels (top and senior management and professionally qualified).
  • And an average of national and regional demographics for the three lower levels (skilled, semi-skilled and unskilled technical) as a guide.


The draft regulations also state that companies that employ less than 150 people have to use the 'national economically active population' demographics for two upper levels and an average of national and the regional demographic for four lower levels.

Critics argued that if companies are required to apply national demographics, worthy candidates who were disadvantaged under apartheid because of their race, perversely faced a similar disadvantage, unless they opted to move to another province.

Why is the removal of this clause significant?

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The removal of this controversial employment equity regulation is significant for these reasons

  • For starters, hiring practices won't be negatively distorted because you have to use national demographics to hire managers and skilled staff.
  • The extra burden of complying with this regulation has been taken off your shoulders as a small business owner. This is certainly good news considering the red tape you already struggle with when it comes to labour laws.

We'll keep you updated on this issue when the DoL publishes the final regulations.



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