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Warning! The following failures will no longer be accepted under the amended EE Act

by , 23 September 2014
Most employers know that the amended Employment Equity Act (EEA) came into effect on 1 August 2014.

What employers are taking for granted is the seriousness of these amendments. They think government just made minor changes and things are still more or less the same.

This kind of thinking is completely wrong.

According to legal experts at Cliffe Dekker Hofmeyr, 'the Employment Equity Act, No 55 of 1998 has been extensively amended and the drafters of the amended EEA envisage a stricter enforcement of the provisions of the Act.'

And when it comes to amendments, experts warn the following failures will no longer be accepted, they WILL result in harsh penalties...


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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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Be warned! The following is a big no-no under the amended EE Act
 

Legal experts from Cliffe Dekker Hofmeyr, Aadil Patel and Kirsten Caddy, say the following failures will no longer be accepted and will be subject to a process of seeking compliance orders:
 
  • Failing to prepare and/or implement Employment Equity Plans, and
  • Failing to file annual reports.

If you commit the above offences, the director-general will immediately apply to the Labour Court to impose a fine.

According to the experts, 'the fines for failing to prepare and/or implement Employment Equity Plans have been radically increased by approximately 300%. The new fines start from R1.5 million or 2% of turnover (whichever is the greater) for a first offence and up to R2.7 million or 10% of turnover for a fourth offence.'

Other failures by designated employers to comply with chapter III of the EEA (e.g. failures to consult with employees or conduct an analysis) may result in a labour inspector seeking a written undertaking from you to correct what you're doing wrong, add the experts.

Government means business with its changes to the EEA. So comply with the Act by achieving employment equity in your workplace or you will be sorry.

Find out how to implement the new EE Act changes here.

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