The Disconnect between Management Control and Employment Equity

A designated employer is required in terms of the Employment Equity Act to create a representative workforce at each occupational category/level. An employer is held to be designated if they employ 50 or more employees. Should an employer have fewer than 50 employees, but have a total annual turnover as reflected in terms Schedule 4 of the Employment Equity Amendment Act 47 of 2013, they will be required to submit an employment equity report with the Department of Labour. Municipalities and Organs of State are also held to be designated employers. In terms of section 14, an employer can volunteer to become a designated employer.

In terms of the Employment Equity Act, the designated group includes:

  • Africans, Indians, Coloureds and Chinese
  • women and
  • persons with disabilities.

It is clear that these constitute three distinct groups, but that it is also possible for an individual to belong to more than one of these collectives. For example, black women fall within two designated groups on the basis of race and gender. This definition also means that white women, by virtue of gender, are held to be members of the designated group to benefit from affirmative action.

In terms of the Broad-Based Black Economic Empowerment Act, the designated group is limited to Africans, Coloureds, Chinese and Indians. White females are therefore not recognized within BBBEE. Employers will not earn points in terms of BBBEE for white females under the elements of ownership, management control, skills development and procurement. This is indicative of the aim of the BBBEE Act which is to empower Black people.

Employers therefore have an important balancing act to ensure representativity of white women to comply with the Employment Equity Act, and not have an over-representation of white women that negatively impacts their score under BBBEE due to non-recognition.

With EconoBEE being one of the oldest consulting firms in South Africa that specialize in BEE, Employment Equity and Skills Development, we have a team of highly qualified consultants to help you and your business manage the gap and maintain the balance between your entity’s BEE and Employment Equity. We help you understand the link between the two through the various training courses and consultation services that we offer.

To help you further understand the above, we have the following upcoming workshops on Employment Equity and BEE:

Title: Half Day Employment Equity Workshop

Date: 15 August (JHB), 28 August (DBN), 17 September (CT)

Duration: 09h00 to 13h00

Price: R1 700 Excl VAT (Free of charge for our Managed Service Clients)

Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg, Durban – The Circle, Douglas Drive, Ballito

 

Title: Half Day BEE Workshop

Date: 27 August (JHB),

Duration: 09h00 to 17h00

Price: R1 700.00 Excl VAT (Free of charge for our Managed Service Clients)

Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg, Durban – The Circle, Douglas Drive, Ballito

 

Title: Full Day BEE Workshop including the Proposed Amendments to B-BBEE Codes

Date: 27 August (DBN), 08 October (JHB)

Duration: 09h00 to 17h00

Price: R3 913.04 Excl VAT (50% discount for BEE Managed Service Clients)

Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg, Durban – The Circle, Douglas Drive, Ballito

 

For more information on our training, please click here / contact us on 011 483 1190 or email pheliswa@econobee.co.za

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