The Department of Employment and Labour has proposed amendments to the Employment Equity Act, 55 of 1998.
The Amendment Bill, may be gazetted by as early as March 2022, and as various proposed changes will be made, we just name a few.
All current EE plan’s will expire on 30 September 2022 and a new plan needs to be developed for implementation effective 1 October 2022.
Employers who employ fewer than 50 employees, will no longer be classified as designated employers. The sector turnover thresholds will therefore fall away. This means that Small that Micro and Medium Enterprises (SMMEs), will not be required to comply with certain chapters of the EE Act.
Sector Specific numerical Targets will become applicable. The Sectoral targets set may differentiate between occupational levels, sub-sectors, regions or other relevant factors;
A new requirement in terms of the amended legislation will require that an employer attaches a certificate of compliance with EE when concluding a contract with government as conclusive evidence that the employer complies with the relevant Chapters of the Act.
A certificate will only be issued to an employer if the employer:
(a) has achieved any applicable sectoral targets or has raised a reasonable ground for non-compliance;
(b) has submitted its most recent employment equity reports; and
(c) has not been found within the previous 12 months to have breached the prohibition on unfair discrimination or to have paid wages below the level of the national minimum wage.
Non-compliance may result in a referral to the Labour Court to impose penalties.
Contact us should you, as an employer, require more information or our professional assistance, or see the full amendment bill here.
