HomeHome SearchSearch MenuMenu Our productsOur products

State of the Nation address reveals: Employment Equity should be top of mind for business owners

by , 18 February 2013
State of the Nation address reveals: Employment Equity should be top of mind for business owners'On broader economic transformation,' said President Jacob Zuma in his State of the Nation address, 'revised Broad-based Black Economic Empowerment Act and codes are being finalised. The development of black owned enterprises and black industrialists will be prioritised.' But while Zuma may call for black economic empowerment (BEE), our Constitution doesn't allow for discrimination of any sort. This makes it difficult for business owners to ensure they're fulfilling their BEE obligations without being taken to court for discrimination. Here's what you can do to implement employment equity in your company fairly.

Closing his 'Uniting Behind the Constitution' speech a few weeks ago, de Klerk said that 'the Constitution did not allow unfair discrimination and if affirmative action and BEE were implemented in a way that constituted unfair discrimination, then it was wrong and unconstitutional,' reports an article on the Business Day Live's website.
 
Now, Zuma's State of the Nation address is calling for business owners to take heed of BEE requirements to ensure they're complying with them.
 
But being BEE compliant can't come at the cost of your existing employees. That's why you need to be really careful when it comes to putting together an employment equity plan for your company.
 
Five ways to implement employment equity in your company
 
Here are five steps you can take to implement your company's employment equity – without being accused of discrimination – as outlined by The Labour Law for Managers Loose Leaf Service.
 
Step #1: Educate and train all your staff
Educate your staff on what the EE Act says and the rights and obligations of both employers and employees. It's also important to train any EE Representative Forum
(such as an employment equity committee) so they've got expert knowledge on the full content of the EE Act as well as their responsibilities and reporting requirements.
 
Step #2: Appoint an employment equity manager and committee
Appoint a senior manager to put employment equity into place in your company. He should also then monitor EE. This person can also be the EE Committee Chairperson. Ensure the appointed EE Manager has sufficient authority to guide your company's employment equity process and implement the recommendations of the committee.
 
Step #3: Develop an employment equity plan
Develop an EE Plan that includes your company's intended actions regarding employment equity.
 
Step #5: Complete the income differential statement
The responsible manager (often the financial manager) must complete the EEA4 form (income differential statement) for your company. This form shows the income differential between employees of different races and genders in the same occupational levels and explains any perceived differences.
 
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 their employment equity status to the DoL every year on 1 October. Their records must reflect employee movement over the 12-month period. Companies that employ fewer than 150 employees must report every year that has an even number (e.g. 2014, 2016) on the 1 October. Their records must reflect employee movement over the 24-month period if staff have left the company or moved into other positions.
 
It's vital your company implement an employment equity plan today not just to avoid being fined by the DoL for non-compliance, but to ensure you do your bit to right the wrongs of the past. Use these steps to ensure your employment equity plan is fair and free from discrimination. Do so now, before the changes to the BEE Act Zuma highlighted in the State of the Nation address come into play.

With fines as high as R900 000 and the possibility of criminal charges, you seriously can't afford to be caught on the wrong side of the law when it comes to EE
Find out how to get it right the first time around…


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>