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The amendments to the EE Act have changed things when it comes to EE reports! Here's what you need to know

by , 12 September 2014
As you know, on 1 August 2014, the amended Employment Equity Act (EE Act) came into effect.

One of the key amendments to the Act relates to Employment Equity (EE) reports.
The procedure for submitting reports has changed significantly and it's important that you know each and every detail so you can comply and avoid penalties that run into millions of rand.

Keep reading to find out how the amendments to the EE Act have changed things when it comes to EE reports.


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There are 26 changes to Employment Equity Act you must comply with in 2014...

If you don't comply with them, the DoL will be on your case.

In fact, the DoL could fine you 10% of your turnover or up to R2.7 million!

Discover how to check if you're complying with all of them to avoid crippling DoL fines.

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The amended EE Act has this to say about EE reports


Legal experts at the law firm, Cliffe Dekker Hofmeyr explain that among the changes are the amendments to section 21 of the EEA, which concerns the report detailing the employment equity plan and progress in implementing the plan.

Prior to its amendment, section 21 distinguished between:
 
  • Employers who employ more than 150 employees, and
  • Employers who employ less than 150 employees.

This distinction no longer applies!

The EE Act now states that all employers who employ more than 50 employees, or have an annual turnover higher than the amount stipulated in schedule 4, must submit their EE reports annually.

If you happen to exceed the threshold for the first time on a date between the first working day of April and the first working day of October, you don't have to submit your first report in that year. You must, instead, submit your first report on the first working day of October of the following year and provide details around the initial development of, and consultation processes surrounding, your Employment Equity plan.

What if you're one of the employers who previously met the threshold?


According to the legal experts, employers who previously met the threshold, and who have submitted the first report must still submit a report to the director-general of the department of labour annually on the first working day of October.

If you employ more than 150 employees, the amendments don't affect you and the frequency of submissions remains the same.

BUT, if you employ less than 150 employees, you now need to submit EE reports annually, as opposed to once every two years as the EEA previously required.


Now that you know how the amendments to the EE Act have changed things when it comes to EE reports, make sure you comply so you can avoid hefty penalties.

For more information on the amendments to the EE Act, checkout The Employment Equity Act Compliance Toolkit.
 


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