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July 5, 2022

Is It Necessary To Comply With The Employment Equity Act Even Though You Are Not A Designated Employer?

The Employment Equity law protects you from unfair discrimination if you are an employer or an employee. The law is implemented to eliminate discrimination through employment policies or practices.

Chapter 2 of the Employment Equity Act is applied to all employees and employers with the exception of the National Defence force, National Intelligence Agency and South African Secret Service. These policies have been implemented to promote equal opportunities and eliminate unfair discrimination in any employment policy or practices.

There are four policies in Chapter 2 of the Employment Equity act, and all companies need to comply with them according to the act. These four policies are:

  • Prohibition of unfair discrimination policy;
  • Medical Testing policy;
  • Psychological testing and other similar assessments;
  • Equal value pay for equal value work (forming a part of the remuneration policy).

These policies should form a part of your daily working activities as an employer or employee, as they are easy to implement. The following will explain each of the four policies with practical examples of each to ensure they are correctly understood.

Prohibition of unfair discrimination is precisely what the policy reads. No person may unfairly discriminate against an employee based on age, race, gender, marital status etc., whether directly or indirectly. Medical and psychological testing and other similar assessments can be viewed simultaneously, as they are more or less the same. These are both prohibited unless certain criteria are met. Medical testing is, for instance, allowed if it is seen as an inherent requirement to do the job or if legislation permits or requires the tests to be done. A good example would be construction workers who need to do specific medical tests before they can work on certain sites. Psychological testing is things such as IQ and personality tests. Suppose the employer uses tests like these, they need to ensure that they are scientifically proven valid and reliable. They then need to be applied fairly and in a non-bias manner. If one employee does them, all employees need to do them.

The final policy forms a part of the Code of Good Practice on Equal Pay / Remuneration for Work of Equal Value in the Employment Equity Act 55 of 1998.  To eliminate discrimination under this policy, the employer must take steps to eliminate differences in terms and conditions of employment, including pay/remuneration. A small example would be if, for instance, two employees are employed on the same day, have the same qualifications, and do the same job, they need to receive the same pay. If this is not true, the employer would require a justifiable reason why.

Complying with the Employment Equity Act does not have to be a headache for employers; with the needed information and guidance, it is quite easy to follow the correct procedures to become fully compliant even though your company is a non-designated employer.

Want to know more about the Employment Equity Act? Contact your nearest SEESA to speak to a professional legal advisor. Alternatively, leave your name on our website, and a SEESA representative will contact you.

About The Author:

Dean Smith started his journey with SEESA in March 2021. He is an SDF at the SEESA Cape Town branch. Dean recently completed his Diploma in Business Management and is always looking for new opportunities to broaden his knowledge on any subject whatsoever.

Resources:

  • Anon., n.d. Summary of the Employment Equity Act. [Online]
    Available at: https://local.labourguide.co.za/employment-equity/summary-of-the-employment-equity-act-55-of-1998-issued-in-terms-of-section-25-1
    [Accessed 20 June 2022].
  • Government, W. C., 2019. Employment Equity Act Summary. [Online]
    Available at: https://www.westerncape.gov.za/general-publication/employment-equity-act-summary
    [Accessed 20 June 2022].
  • Heerden, A. V. & wyk, J. v., 2015. Code of good practice on equal pay/remuneration for work of equal value. [Online]
    Available at: https://www.werksmans.com/legal-updates-and-opinions/code-of-good-practice-on-equal-payremuneration-for-work-of-equal-value/
    [Accessed 20 June 2022].
  • President, O. o. t., 1998. labour.gov.za. [Online]
    Available at: https://www.labour.gov.za/DocumentCenter/Acts/Employment%20Equity/Act%20-%20Employment%20Equity%201998.pdf
    [Accessed 20 June 2022].

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