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:

  1. Do you employ more than 50 employees?
  2. Is your annual turnover more than the industry threshold as depicted in the table?
Industry Sector Total Annual Threshold
Agriculture R6,000,000
Mining and Quarrying R22,500,000
Manufacturing R30,000,000
Electricity, Gas and Water R30,000,000
Construction R15,000,000
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!!!


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