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July 31, 2022

Duties Of A Designated Employer In Regards To The Employment Equity Act

One of the essential services that a SEESA Skills Development Facilitator offers to a SEESA Skills Training client is advising and assisting the client in complying with the Equity Act.

Every designated employer must, to achieve equity, implement affirmative action measures for people from designated groups in terms of the Act.

A designated employer needs to identify which of the barriers listed within the Act prevents the company from achieving equity. This will either be through procedure, in practice or by the lack of policy. The employer then needs to implement Affirmative Action Measures to address these barriers.

A designated employer must:

  • Appoint an EE Manager. The CEO needs to appoint an EE manager who can assist with implementing the Employment Equity process. This individual has to be a permanent employee and needs to report directly to the CEO.
  • Communication and awareness. All employees should know what Employment Equity is and why the company is submitting such reports to the Department of Labour. They need to be informed about what unfair, and reverse discrimination is, and what is meant by affirmative action and transformation.
  • Consult with employees and establish a committee as required by section 16. The Equity Act requires a company to establish an Employment Equity Committee with representatives of all occupational levels, genders & races. These representatives should also be from both designated and non-designated employees. This Committee needs to meet quarterly.
  • Conduct an analysis as required by section 19. All employees of a designated employer need to complete an EEA1 form, which confirms each employee’s race, gender and disability status. This gives the employer a clear idea of the representation of employees and is then compared to the national & provincial Economic Active Population (EAP) statistics prescribed by the Equity Act. The EAP prescribes the representation of employees on all occupational levels according to race and gender based on a specific demographic area. This comparison helps the designated employer to establish over- and under-representation of designated & non-designated employees on the different occupational levels. The objectives in the employment equity plan are formulated according to this over- & under-representation.
  • Prepare an employment equity plan as required by section 20. The employment equity plan is drafted with clear objectives for each plan year, which may have a minimum duration of 1 year with a maximum duration of 5 years. The objectives set out in the employment equity plan will address the over- & under-representation of designated employees for the company to achieve equity.
  • Report to the Department of Labour as required by section 21. A designated employer needs to report to the Department of Labour annually. Reporting is done on the company’s movements, recruitments, terminations and promotions for 12 months. Through this reporting, the Department of Labour assesses whether the objectives in the employment equity plan were achieved.

It is clear from the above that compliance with the Equity Act does not merely entail a designated employer reporting once a year on movement within the company. Employment Equity is a process, and the duties of the designated employer need to be executed continuously throughout the year to comply with the Equity Act in order to avoid hefty penalties.

Want to know more about the Employment Equity Act? Contact your nearest SEESA to be assisted by a SEESA Skills Development Facilitator. Alternatively, leave your contact details on our website, and a SEESA representative will contact you.

About The Author:

Jacques Pienaar started his career at SEESA in 2017 as an Administration Clerk in the Skills Training department. He is currently a Skills Development Facilitator at the SEESA Bloemfontein Branch. Jacques was promoted to Skills Development Facilitator in August 2018 and has since been advising & assisting clients on Employment Equity and Skills Development & Training.

Resources:

  • The Employment Equity Act 55 of 1998.

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