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  • Are you due to update your employment equity plan?
  • Are you aware of the amendment to the EEA4 Income Differentials Form?
  • How prepared is your organisation for a Department of Labour audit?

What is the Employment Equity act?

According to Section 20 of the EE Act, Designated Employers are obliged to submit their employment equity reports annually to the Department of Labour.  These have to include demographic profiles, gender representations, as well as EE plans on how to address discrimination and inequity n the workplace.

Where an employer fails to file its employment equity report, the Director-General may apply directly to the Labour Court to impose a fine ranging from the greater of R1 500 000.00 or 2% of the employer’s turnover to R2 700 000.00;  or 10% of the employer’s turnover, depending on the frequency of the offence.

How we can help you?

Transcend, your strategic BEE partner, can advise on EE Plan development and implementation. We will also facilitate compilation of EEA2 and EEA4 forms and submission to the Department of Labour.

  • Here are the main areas to test if your EE committee has been effective:
  • Employee-stakeholder alignment has been investigated.
  • Employment Equity barriers analysis has been performed using various methods.
  • Employment Equity projections of goals and targets have been employed
  • Updating the employment equity plans to include strategies towards the Equal pay for equal work requirements.
  • Projection of future employee targets that are aligned with the business strategy.
  • EEA2 and EEA4 submissions

Amended EEA4 Income Differentials Form – The Department of Labour has Gazetted the revised EEA4 regulations and repealed the previous ones. The Amended EEA4’s regulations introduce a different way that companies should report on their remuneration in the workplace. Critical aspects of the new format include:

  • fixed vs variable remuneration;
  • inclusions, exclusions, and conditions;
  • median, mean and range calculations;
  • overall wage gap from lowest to highest paid;
  • inclusion of temporary employees; and
  • existence of remuneration and equal treatment policy and alignment of remedial actions.

The amendments are effective immediately and apply to the 2019 EE Reporting cycle which opens on 1 September.

If you are struggling with these and need assistance, or just do not have time to do this efficiently, Transcend can walk you through the process and make sure you are prepared for your EE submission.

Download the 2018-2019 Commission for Employment Equity Annual Report here.

Our EE Committee Training team is here to help you.  Call, or email us for professional support.

Transcend has developed a focused one-day EE Committee training course that covers:

  • Alignment with the EE Act and BEE
  • Compliance with the EE Act,  including related monitoring and reporting
  • Updates on the most recent legislative developments:  Labour Relations Act; EE Act; and Basic Conditions of Employment Act
  • Establishing an EE Committee, including the roles and responsibilities of the EE Committee and the EE managers
  • Best practice approaches to managing your EE Committee
  • Understanding best practice tools to build line management buy-in and  commitment
  • Understanding the impact of the Revised BEE Codes on your EE Committee
  • Best practice in building and communicating an EE plan
  • Linking EE to Skills Development
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