The purpose of the Employment Equity Act (EEA) in South Africa is:
An Employer with fewer than 50 employees, who is subject to the turnover threshold applicable to designated employers. (* Contact SERR Synergy for your specific industry turnover threshold or visit Department of Labour website.)
A Municipality; or
An Organ of State; or
An employer bound by a collective agreement which appoints it as a designated employer.
An EER must be submitted once every year on the first working day of October or, if an electronic report is submitted, on 15 January the following year. Therefore manual (and posted) submissions for 2016 already closed 3 October 2016. Online submissions for 2016 need to be made by 15 January 2017.
Employers are advised that, while submitting their EE Report in time is crucial, this is not adequate to ensure full compliance with the requirements of the legislation. Employers are also legally bound to ensure that the report’s contents are factual and accurate and that they reflect sufficient progress with affirmative action in the staffing of their organisations as required by the EEA.
Non-compliance may have far-reaching consequences and affect a business adversely. Businesses may face fines of up to R2.7 million or 10% of annual turnover
Under the Revised Codes for Good Practice a business will be verified on five elements, one of these being Management and Control. Without the Employment Equity Report (EER), no points will be awarded for Management and Control on the BEE Scorecard. This will most certainly have a negative effect on the overall score and level of the BEE certificate.
Some employers submit their EE reports personally, others prefer hassle free submission by using industry experts.
SERR Synergy are experts in the development and implementation of Employment Equity Plans and submission of the required reports. We guide businesses through the process to ensure that equity in your organisation meets the requirements of the Employment Equity Act as well as supports the growth and success of your business.
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