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Six steps to implement Employment Equity in your company

by , 10 June 2013
Every company has to comply with the Employment Equity Act (EE) and eliminate unfair discrimination. Failure to this could result in your company facing a fine of up to R900 000 for non-compliance with the Act. Read on to discover the six step approach you can use to implement Employment Equity (EE) in your workplace.

It's crucial that you achieve equity in the workplace.

And your first step to doing this is to implement employment equity in your company or face a fine of up to R900 000.

Here are six steps you need to follow when putting measures to achieve employment equity.

Implement Employment Equity in your company using these six steps

Step #1: Educate and train all your staff

Educate your staff on what the EE Act says regarding employee rights and your rights as an employer.

It's also important to train any EE Representative Forum (such as an EE Committee) so they've got expert knowledge on the full content of the Act as well as their responsibilities and reporting requirements.

Step #2: Appoint an Employment Equity manager

Appoint a senior manager to put EE into place in your company. 'Ensure the appointed EE manager has sufficient authority to guide the process and implement the recommendations of the committee,' says the Practical Guide to Human Resources Management. They should also have sufficient positional authority to ensure EE matters aren't swept aside in favour of other business priorities.

The EE manager must be a permanent employee and key EE outcomes must be incorporated into their performance contracts (Key Performance Indicators). They must develop a constitution to govern the EE process.

Step #3: Form an EE Committee

Once you've completed the training, form an EE Committee.

Step #4: Develop an EE Plan

Develop an EE Plan that includes your company's intended actions regarding EE.

Step #5: Complete the income differential statement

The responsible manager (often the financial manager) must complete the income differential statement and an income differential report. This form shows the income differential between employees of different races and genders in the same occupational levels and explains any perceived differences. As the form contains confidential information, some non-public companies choose not to disclose its contents.

Step #6: Submit your signed EE Report and completed income differential statement to the Department of Labour (DoL)

'Companies who employ more than 150 employees must report every year on 1 October. Their records must reflect employee movement over the 12-month period,' explains the Guide. Companies that employ fewer than 150 employees must report every year that has an even number on the 1 October. Their records must reflect employee movement over the 24-month period. This'll be where people have either left the company or moved into other positions.

Ensure you comply with the Employment Equity Act by implementing these six steps to create Employment Equity in your company.



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