Employment Equity Compliance

Sharp Solutions is able to assist with the entire Employment Equity Compliance Process:

Conduct a workforce analysis
Develop an Employment Equity Plan
Constitute an Employment Equity Committee
Submit mandatory reports to Department of Labour. (DOL)

Note:
It is a statutory requirement that designated employers must submit reports to DOL annually.
Reports are due from 1st September each year. Designated Employers are legally bound to comply with Legislation.

A “designated” Employer according to the EE Act:

an employer who employs 50 or more employees;
an employer who employs fewer than 50 employees, but has a total annual turnover that is equal to or above the applicable annual turnover of a small business in terms of schedule four to this Act (see turnover threshold table below)
a municipality, as referred to in chapter 7 of the Constitution; an organ of state as defined in section 239 of the Constitution, but excluding local spheres of government, the National Defence Force, the National Intelligence Agency and the South African Secret Service;
an employer bound by a collective agreement in terms of section 23 or 31 of the Labour Relations Act, which appoints it as a designated employer in terms of this Act, to the extent provided for in the agreement.”

Sector	Turnover Thresholds
Agriculture	R6 million
Mining and Quarrying	R22.5 million
Manufacturing	R30 million
Electricity, Gas and Water	R30 million
Construction	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, Special and Personal Services	R15 million

Contravention of the Act

Previous Contravention	Contraventions of any provisions of sections 16, 17, 19, 22, 24, 25, 26 and 43(2)	Contraventions of any of the provisions of sections 20, 21, 23 and 44(b)
No previous contravention	R1 500 000 [500 000]	The greater of R1 500 000 or 2% of the employer’s turnover
A previous contravention in respect of the same provision	R1 800 000 [600 000]	The greater of R1 800 000 or 4% of the employer’s turnover
A previous contravention within the previous 12 months or two previous contraventions in respect of the same provision within three years	R2 100 000 [700 000]	The greater of R2 100 000 or 6% of the employer’s turnover
Three previous contraventions in respect of the same provision within three years	R 2 400 000 [800 000]	The greater of R2 400 000 or 8% of the employer’s turnover
Four contraventions in respect of the same provisions within three years	R2 700 000 [900 000]	The greater of R2 700 000 or 10% of the employer’s turnover

Feel free to contact us if you have any questions.