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Remember to re-evaluate your EE targets each time an employee resigns...

by , 10 May 2013
As they're so detailed, it's little wonder businesses across the country breathe a sigh of relief on submitting their employment equity reports to the Department of Labour each year. But you shouldn't see this as something to only tackle once a year. In fact, with JSE-listed company Nu-World's allegedly doctored BEE certificate in the spotlight, have a look at your employment equity reports right now. You need to make sure they're accurate by keeping track of the targets and checking variances monthly!

Most companies face at least one employee resignation each month. 
They respond by quickly filling the vacancy so as to not affect production.
But in doing so, there's one thing many forget: You need to keep track of your employment equity targets and check variances monthly, especially as you hire new employees.
So remember to evaluate the effect of employee changes to your targets, and be aware of how this may affect your BEE status, says The Practical Guide to Human Resources Management.
If you don't, you could face the wrath of the Department of Labour for submitting inaccurate employment equity reports.
Especially as one of the recent employment equity changes is that you need to separate numerical targets reporting from numerical goals reporting, in line with legislative requirements.
Don't get sidetracked by a potential loss of BEE status…
But businesses seem to have forgotten this, focusing instead on how many points they stand to lose on their BEE certificates under the BBBEE draft codes of the codes of good practice, published by Trade and Industry Minister Rob Davies in September last year.
That's because an amendment to the revised codes could result in a reduction of companies' BE status or empowerment ratings through the introduction of sub-minimum targets for the priority elements, says SmartProcurement.
So companies will now need to earn between 10 and 20 extra points to maintain their BEE status.
That could be why appliance manufacture Nu-World is now accused of issuing a fraudulently altered BEE certificate to one of its major customers, says Moneyweb.
Don't go this route.
Prove your employment equity reports have kept track of your employee resignations and recruitment
Instead of worrying about your business' BEE status, check that your employment equity reports are accurate.
To do so, simply keep the previous two years' reports on workplace profiles and numerical EE target reports for small companies, and the previous three years' reports for large companies, says the Labour Bulletin.

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