According to the Employment Equity Amendment Act 2013, a designated employer must submit a report to the Department of Labour once every year.
Please remember that a designated employer is defined as:
- 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 as defined in the table below:
|Sector or Subsections in Accordance with The Standard Industrial Classification||Total Annual Turnover|
|Agriculture||R 6 million|
|Mining and Quarrying||R 22.50 million|
|Manufacturing||R 30 million|
|Electricity Gas and Water||R 30 million|
|Construction||R 15 million|
|Retail and Motor Trade and Repair Services||R 45 million|
|Wholesale Trade, Commercial Agents and Allied Services||R 75 Million|
|Catering Accommodation and other Trade||R 15 million|
|Transport, Storage and Communications||R 30 million|
|Finance and Business Services||R 30 million|
|Community, Social and Personal Services||R 15 million|
Failure to comply could result in a fine of between R 1 500 000.00 and R 2 700 000.00 or between 2% and 10% of turnover – whichever is greater.
In the event that you would require our assistance in the submission of the required reports and in order for Connold and Associates to accurately determine whether your company is classified as a designated employer, please can we request that you provide Tessa at our offices with:
- The projected number of employees on your payroll as at 1 August 2020
- The company’s current annual Turnover
- Confirmation of Sector company is registered under
Employment Equity inspections – Employment Equity Plans
Employment Equity inspections are in progress by the Department of Labour and are specifically focusing on the implementation and validity of Employment Equity Plans.
The act requires companies to include in their Employment Equity plans, a strategy and time frame to implement and rectify under-representation of persons from designated groups.
The Department of Labour has indicated that EEA2 reports will not be received as legitimate submissions without proper consultation and communication strategies in place that inform all employees of the EE Act.
Companies that do NOT have Employment Equity plans in place may be fined for contravention of the act: The greater of R 1.500 000 or 2% or the employer’s turnover. In addition, companies that have falsely reported on Employment Equity plans or do NOT have such plans in place will be criminally prosecuted
Please contact Tessa Lourens at our office or using this form if you would like us to assist with the relevant submission of your EE report to the Department of Labour.