|More so than ever, transformation, radical economic transformation, BEE and employment equity are under the spotlight and it is imperative for all companies to comply with the relevant legislation.|
The recently issued Commission for Employment Equity results shows that many companies have not followed through with their plans in implementing employment equity changes. Minister of Department of Labour, Mildred Oliphant has said that the DOL is taking this very seriously and is going to be revising their approach. This means that companies need to comply fully with the EE act, or else potentially risk fines.
In order to be fully compliant with the EE act, you must have a functional EE committee that meets regularly to discuss EE issues in the company as well as monitor your EE plan that was submitted. The EE committee must meet at least every quarter, else you are not deemed compliant with the EE Act and you could be liable for a fine. Since many companies “budget” for this fine, it may be increased in the future. The commission for EE has noted that there has been insufficient progress towards the goals and targets.
17th CEE Annual Report
The Department of Labour has seen a slight increase in the number of EE reports submitted. 25 030 reports were received last year compared to this years’ 26 255.
A large percentage of the Top Management Level is still occupied by the white population. Top Management in the private and public sectors is mainly dominated by the White, African and Coloured group although the African and Coloured group still fall short on their EAP.
In Senior Management Level whites occupy 58.1%, Africans: 22.1%, Indians: 10.6% and Coloured are at 7.7%. For this level, the report shows that 59.1% of Whites were terminated, and 53.8% were recruited. 46.2% of promotion opportunities went to Whites and 56.9% of the training opportunities went to Africans.
Professionally Qualified Level is predominantly occupied by Africans with 41.5% of the positions on this level, followed by Whites with 37.5%.
60.2% of the positions on the Skilled Technical Level are occupied by Africans; 20.8% by Whites; 11.5% by Coloured and 5.8% by Indians.
Unskilled level is primarily occupied by Africans at 83.2%
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ABSA vs DOL
The recent news about the legal case of whether or not ABSA’s EE report was submitted by 15 January 2017 or not pose an interesting debate. Their information was captured on the DOL’s website prior to the deadline of 15 January 2017. However the DOL stated that the ABSA submission was not complete because the submit button was not pressed according to their records. The judge ruled that even though the submit button may not have been pressed the fact that the information was saved on the site and the subsequent email confirming that the information was received is enough to confirm a submission taking place.
The EE Act requires that not only must the submission be done on the DOL’s website, but also that the information contained in the report must have been signed off by the EE committee and a senior EE manager. There must also be proof of all meetings and who attended. This takes time. The Employment Equity Committee is responsible for compiling the information for the submission and making sure that it is in line with the goals and targets of the company. The goals and targets are guided by the economically active population numbers that are either national or regional numbers. There is far more to being compliant with the Act than just submitting once a year at the last moment.
EconoHR is a division of EconoServ that consults on HR issues related to statutory compliance with the Employment Equity Act, Basic Conditions of Employment and the Labour Relations act. The EconoHR team are also experts on the Skills Development Levy Act and Skills Development Act as well as implementation.
EconoHR has three flagship products being Employment Equity Compliance Managed Service, Skills Development Managed Service and Labour Law Managed Service.
Our HR team realises that with the complexities that business has in simply running a business, owners, directors, HR people of businesses don’t have the time to read all the lengthy legislation and prepare documents needed to comply. Our team are excellent administrators to make sure that these seemingly difficult tasks are handled on a regular basis with all documentation as part of our record keeping. We see our role as supporting your current HR department from the view point of the legal basis. We will advise on the legality of the situation on a situation by situation basis and help build capability by training as many people as necessary.
Join us for an informative Employment Equity Workshop on the 25th of May where we will help you be better prepared for your next submissions.
Additional information and a full calendar of all our courses are available on our website.
Talk to us today about other solutions to help your business achieve its objectives.
Contact us on email@example.com or 011 483 1190.