Each year people are required to remember many different things. For example, every year you remember to process new financials, pay your taxes, wish your friends a happy birthday and you remember to do your workplace skills plan submission and your employment equity reports. Some of these tasks are far more important than others. I wouldn’t want to upset my friends by forgetting a birthday, but there is sometimes a lot to do at certain times.
This time period in the employment equity world, is the period where your employment equity reporting and plans need to be submitted to the Department of Labour. The Employment Equity reports show the number of staff members who are African, Coloured, Indian, White and Foreign. The numbers are divided to show how many people are male and how many people are female within the racial groups. The reporting goes one step further to show the number of people in top management, senior management, middle management, junior management, semi skilled and unskilled. Your EEA2 also shows demographically the number of people who have been promoted, resigned or terminated during the reporting period. Sensitive salary information is provided via the EEA4 which shows the same information as your EEA2, but now includes the combined salary for the whole level, ie it will show that you have 29 African males in junior management and that the combined salary for all 29 employees is R2 958 000. Each individual person’s salary is not disclosed. This is required to compare the salaries broadly throughout the company. On a separate note, the EE act now talks of equal pay for work of equal value – the DOL may be looking closely at your EEA4 to see if you comply with the new amendments. We will cover this concept at our half day workshop.
We will also cover how to actually fill in and submit your reports, usually done online to the Department of Labour. Don’t forget to do this in advance of the 15th of January deadline! Also, don’t forget that the amendments to the employment equity act now require submissions to be done annually (previously it was every second year) if you are a designated employer.
If you to forget to submit these documents the DOL can impose hefty fines or in the case of incorrect information supplied the DOL can visit you and do a full audit on your company.
Why is it so important?
The employment equity act of 1998 aims at reducing discrimination and promoting equal opportunities for all races and gender and for people living with disabilities. The current EE stats show that roughly 90% of the population is black (African, Coloured, Indian) and only 10% is white. The demographics that are usually evident in companies don’t show the country’s economically active population demographics at all. They usually depict a very different picture that is changing very slowly to be more in-line with the country’s demographics. The EE reporting looks at your current workforce profile and allows you to set your own goals and targets of your proposed workforce in the future, for example if you are currently showing 40% white people in top management and the actual demographic should be 10%, over time you would have a plan to reduce the white representation to 35% then 30% then 25% and eventually reach the correct demographic in time. Good corporates will have a plan in place and aim to reach the goals and targets set. The target and goal setting is an important part of your plan as it needs to be achievable with clear steps to be taken to achieve the plan, else risk the DOL paying you a visit.
Who needs to submit the EE reports?
All designated employers need to submit the EE reports. A designated employer is an employer who employs more than 50 employees or who has a turnover as shown in the below table.
|Sector or sub-sections||Total annual turnover|
|Mining and Quarrying||R22.5 million|
|Electricity, Gas and Water||R15 million|
|Retail and Motor Trade and Repair Services||R45 million|
|Wholesale Trade, Commercial Agents and Allied Services||R75 million|
|Catering, Accommodation and other Trade||R15 million|
|Transport, Storage and Communications||R30 million|
|Finance and Business Services||R30 million|
|Community, Social and Personal Services||R15 million|
When does it need to be submitted?
A designated employer’s submission needs to be submitted manually by 1 October or online between October and 15 January. The submission could be done every second year, but now the amendments require all designated employers to submit every year.
How we can help
EconoHR has a specialised managed service that can assist you with all Employment Equity and Skills Development requirements (Hyperlink to brochures). We are also hosting a series of workshops to help you understand the reports to the Department of Labour and the Labour Relations Act.