Designated Employers are required to submit employment equity reports annually to the Department of Labour, illustrating their company’s employment profile, employee demographics and income differentials. The reporting period begins 1 October of each year, and company’s have until 15 January to complete their submission.
If you are unsure if you are a designated employer, ask yourself these 2 questions:
- Do you employ more than 50 employees?
- Is your annual turnover more than the industry threshold as depicted in the table?
|Industry Sector||Total Annual Threshold|
|Mining and Quarrying||R22,500,000|
|Electricity, Gas and Water||R30,000,000|
|Retail and Motor Trade and Repair Services||R45,000,000|
|Wholesale Trade and Commercial Agents and Allied Services||R75,000,000|
|Catering, Accommodation and Other Trade||R15,000,000|
|Transport, Storage and Communications||R30,000,000|
|Finance and Business Services||R30,000,000|
|Community, Social and Personal Services||R15,000,000|
If you answered yes to either one of the above questions, then you are a designated employer and you are required to submit reports and ensure compliance within your company.
The Compliance aspects aside from the Reporting (submission of the EEA2 and EEA4) are also important elements not to be forgotten. These include; Awareness, Consultation, Analysis, Planning, Implementation, and Measurement.
Should your company be found to be non-compliant through a labour inspection:
- You’ll personally face fines of up to R30 000 per contravention; and
- Your company will face fines from a minimum of R1.5 million or 2% of annual turnover to a maximum of R2.7 million or 10% of your turnover – per incidence of non-compliance, per provision!
As you can see, the penalties are high, and possibly not worth it in the long run.
Call Human Alliance today and let us assist you in ensuring your compliance in all the areas, making your life a little easier and less stressful!!!