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Employment Equity

What is EE about?
Employment Equity is about equal opportunities to all in the workplace, eliminating unfair treatment and implementing Affirmative Action measures.  Please refer to the Employment Equity Act, no. 55 of 1998 for more information in this regard.  You can download the Act from the internet (search it on Google) or visit the Employment Equity section on the Department of Labour’s website (www.labour.gov.za).

Does our organisation need to comply with the EE Act?

  • Only if the organisation has 50 or more employees.
  • If the organisation has less than 50 employees, compliance with the Act is also required if the turnover of the organisation is equal or more than the amounts stipulated in the table below.

In simple terms, you still need to comply with the Act if you have less than 50 employees, but your turnover (for the last financial year – VAT INCLUDED) is equal or more than the amounts stipulated in the table below.


Sub sector

Total annual turnover

Agriculture

R2.00m

Mining and quarrying

R7.50m

Manufacturing

R10.00m

Electricity, gas and water

R10.00m

Construction

R5.00m

Retail and motor trade and repair services

R15.00m

Wholesale trade, commercial agents and allied services

R25.00m

Catering, accommodation and other trade

R5.00m

Transport, storage and communications

R10.00m

Finance and business services

R10.00m

Community, social and personal services

R5.00m

Under which sector does our organisation fall?
You need to classify the organisation under the sector which best describes your organisation.  These are the only sectors provided by the Department of Labour and you need to classify the organisation accordingly.    If none of the sectors seem to be applicable – choose “finance and business services” with an annual turnover of R10m.

What do we need to do if the organisation does not need to comply with the EE Act?
Ignore our correspondence.  Just keep in mind that EE might be applicable to your organisation in future.  You might also want to do EE voluntarily to increase your BEE scorecard.  There is no need to submit a letter or place on record that you don’t need to comply with the Act.  You only submit the relevant EE documents if you are regarded as a Designated Employer (thus need to comply with the Act because you have 50 or more employees or a turnover or equal or more than the amount for your sector specified in the table).

What does it involve if we need to comply with the EE Act?
You need to submit the EEA2 and EEA4 documents (known as the EE reports) to the Department of Labour (not to Cofesa).  In addition, you need to do everything stated by the EE Act, such as:

  • Develop an EE Plan;
  • Appoint an EE manager;
  • Form an EE forum/committee;
  • Consult with the EE forum/committee with regards to the EE reports to be submitted to the Department of Labour; and
  • Create awareness of EE in the workplace.

Where can I get the EEA2 and EEA4 documents?
You can download the forms from www.labour.gov.za – under the Employment Equity section.

How do I submit the EEA2 and EEA4 documents to the Department of Labour?
Documents can be submitted manually (in hardcopy) before 1st October.  The deadline for submissions has been extended by the Department of Labour until 15 January 2010.  Only on-line submissions were accepted until 15 January 2010.

How often do we need to submit our EE documents?
Organisations with 150 or more employees submit EE document every year by the 1st of October (manually) or by the 15th January of the next year (on-line).
Organisations with less than 150 employees submit every 2nd year on the year that ends on an even number, thus 2010, 2012, 2014 etc.
If you have 150 or more employees and you have just submitted your EE documents (that was for the 2009 submission), you need to submit again before 1st October 2010.

If you have less than 150 employees, and you have just submitted your EE document, you need to submit again by before 1st October 2010 to get you “in sinc” with the 2 year submission that needs to be on the year that ends on an even number.  Thereafter you will only submit every second year (2012, 2014 etc.)
What do we do if we have missed the deadline of 15 January 2010 for EE submissions?
Submit your documents (EEA2 and EEA4) to the Department of Labour before 1st October 2010.  Get this in place a.s.a.p. 

For further enquiries, please e-mail info@cofesa.co.za; or equity@beyondconsulting.co.za