The Employment Equity amendment bill was anticipated to take effect from the 1st of September 2023, but the president has not yet proclaimed the effective date. One of the effects of the amendment bill would be that employers with less than 50 employees would not be considered a “designated employer” irrespective of annual turnover.
Under the current Employment Equity Act, a designated employer is an employer who employs more than 50 employees or an employer who employs less than 50 employees but has a total annual turnover that is equal to or above the annual industry turnover threshold, as set out below.
Employment Equity Thresholds
| Sector or subsectors | Total annual turnover |
|---|---|
| Agriculture | R6,00 m |
| Mining and Quarrying | R22,50 m |
| Manufacturing | R30,00 m |
| Electricity, Gas and Water | R30,00 m |
| Construction | R15,00 m |
| Retail and Motor Trade and Repair Services | R45,00 m |
| Wholesale Trade, Commercial Agents and Allied Services | R75,00 m |
| Catering, Accommodation and other Trade | R15,00 m |
| Transport, Storage and Communications | R30,00 m |
| Finance and Business Services | R30,00 m |
| Community, Social and Personal Services | R15,00 m |
Submitting annual employment equity reports doesn’t automatically render a designated employer compliant; the act also sets out the duties of a designated employer, which are:
- Consult with employees through the employment equity forum.
- Conduct an analysis.
- Identify barriers and affirmative action measures.
- Identify goals and targets for achieving employment equity goals.
- Prepare and implement an employment equity plan.
Non-compliance with the Employment Equity Act could lead to a fine being imposed on a designated employer. The Employment Equity reporting period will commence on the 1st of September; regarding section 21 of the Employment Equity Act, all designated employers must submit an employment equity report to the director general annually.
If you would like to speak to us about the new amendments or would like to find out more about how it may affect your workplace, then please contact Invictus Group on 0861 737 263 for us to assist you.
