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What does the change in the Employment Equity Act regarding 'EE steps and measures' mean?

by , 20 February 2014
The new Employment Equity Act amendments are causing quite a lot of concern for employers. The new provisions mean you'll now have to increase your efforts to not only get more diversity into your organisation, but also actively eliminate unfair discrimination in all areas of work. On top of this, you now also have to thrash out exactly how you plan to do it. Then add that level of detail to your EE Plans.

But what does the requirement regarding 'EE steps and measures' mean? 
Keep reading to find out…

Get to grips with how to draw up your Employment Equity Plan!
Completely in line with the new provisions to the Employment Equity Act!

Attend the Employment Equity Plan half–day Workshop on
11 March in Johannesburg
13 March in Cape Town

And the seasoned expert, Janine Nieuwoudt, will show you step–by–step how to draw up your own EE plan.


What does the requirement regarding 'EE steps and measures' mean?
The new amendments require you to define specific steps and measures that detail how you'll implement employment equity in your company. You then need to include the detail in your EE Plan(s).
In the past, many companies made broad statements like this in their EE Plan:
  • We will train previously disadvantaged employees; OR
  • We will implement a new graduate recruitment programme; OR
  • We will ensure that managers treat all employees fairly.
Those kind of statements will not meet the new EE requirements. Government has tightened these provisions and now want your EE Plan to detail specific actions, for each year of your Plan. You must include details like:
  • What you'll do;
  • Step-by-step breakdown on how you'll do this;
  • Who'll actually be doing it; and
  • When you'll actually do it. You must include a calendar of events or milestones.
To make sure you comply with these new provisions, the new amendments make it compulsory for all designated employers, no matter what  size, to now report annually on their EE progress. The DoL is also increasing the number of inspectors, widening their powers and scheduling more DoL audits to actively seek out non-compliance. 
So, what will happen if you don't comply with the new provisions?

The fines for non-compliance have increased
Any employee who contravenes the provisions can personally be fined up to R30 000 per contravention. Companies can expect a minimum fine of R1.5 million or 2% of annual turnover to a maximum of R2.7 million or 10% of their turnover. This is per incidence of non-compliance, per provision! 
These steep penalties could certainly mean bankruptcy for many companies, so it really is in your company's best interests to get compliant now. 
Don't wait until it's too late, it takes more time than you may think to get all the legal requirements in place. Take immediate action - your company's future may depend on it!
Until next time ….

Janine Nieuwoudt
Editor-in-chief - Practical Guide to Human Resources Management

P.S. Book now for our Employment Equity Plan Workshop. In just four hours we'll show you:
  • How to develop an EE Plan that meets the requirements for all the new amendments;
  • Ways to meet EE measures and activities requirements;
  • Steps to reduce unfair discrimination and income differentials; and
  • How to avoid penalties for non-compliance.

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