To meet statutory requirements and enhance your Broad-Based Black Economic Empowerment (B-BBEE) scorecard, compliance with Employment Equity (EE) is crucial. This guide is designed to help you determine your need for EE submissions, assess your current compliance status.
Purpose of the Employment Equity Act
The Employment Equity Act aims to:
- Promote Equal Opportunities: Ensure fairness and equal treatment in the workplace.
- Implement Affirmative Action: Address historical disadvantages experienced by designated groups.
Although amendments to the Employment Equity Act (EEA) have been passed, they are not yet in effect. Thus, the submission requirements for 2024 remain unchanged. We will update you on any changes as they occur.
Key Dates and Deadlines
- Online Reporting System Opens: 1 September 2024
- Online Submissions Deadline: 15 January 2025
Who Must Submit an Employment Equity Report?
An Employment Equity Report is required from:
- Employers with 50 or more employees.
- Employers with fewer than 50 employees who exceed the turnover threshold for designated employers.
- Municipalities, state organs, and employers governed by collective agreements.
Note: Employers newly designated between April 2024 and October 2024 will need to submit their first report by 15 January 2026.
Why Submit an Employment Equity Report?
Submitting an Employment Equity Report is essential because:
- Penalties for Non-Compliance: First-time offenders face fines up to R1.5 million or 2% of their annual turnover. Repeat offenders are subject to even higher penalties.
- B-BBEE Scorecard Impact: Without a report, employers cannot earn points for Management Control on the B-BBEE scorecard, which negatively affects their overall BEE level.
