Talk legal to me: President assents to the Employment Equity Amendment Bill

President Cyril Ramaphosa has signed into law the Employment Equity Amendment Bill of 2020. The Bill is set out to encourage transformation in the South African workplace, with the aim of allocating equity targets for the economic sectors and requiring enterprises to develop transformation plans internally. A clear and concise interpretation of economic sectors and geographical targets for compliance are yet to be clarified however, for the purpose of targets, it is to ensure equitable representation from all groups based on race, gender and disabilities, at all levels of the employment workforce. This specifically addresses workplaces that have been lagging to this extent.

WHAT DOES THIS MEAN?

The Bill amends the Employment Equity Act of 1998 (Act No 55 of 1998) with new measures to promote diversity and equality in the workplace.

The Amendment Bill empowers the Minister of Employment and Labour to regulate compliance criteria to issue Compliance Certificates as per Section 53 of the Employment Equity Act. It further permits the above-mentioned Ministers to set regional targets given that racial diversity in South Africa often has regional differences.

THE IMPACT ON EMPLOYERS

Employers with more than 50 employees (previously referred to as ‘designated employees’) are required to submit employment equity plans for their companies. Said plans must include the strategy on how the business will achieve its targets. Employers must further submit annual reports to the Department of Employment and Labour.

The Employment Equity Plans numerical targets should be parallel to the sectorial targets. In the event where the two do not read alongside each other, the employer needs to provide a reasonable justification why they are not aligned. This must be clearly set out in the employer’s Employment Equity Plan. Employers with less than 50 employees are relieved from this administrative burden, as they are no longer compelled to submit employment equity plans. 

THE IMPACT ON EMPLOYEES

Employee remuneration, a topic which was erstwhile insurmountable to employees has been addressed. The current legal position apropos remuneration, now requires employers to pay workers equal pay for equal work. The latest Act provides a foundation for this by setting out the definition of discrimination and what workers can do further, when facing such discrimination. The possibilities extend to:

(a)         Lodging grievances with the Commission for Conciliation,

(b)         Mediation and Arbitration,

(c)         Employees taking their concerns to Labour Courts.

To solidify the new legislation coming into practice and ensuring that the employment equity objectives in fact become reality, the law now compels labour inspectors to inspect workplaces and to issue employers comply with the provisions.

The Department of Employment and Labour has obliged itself to increase the number of labour law and health & safety compliance inspectors who will be sure to enforce compliance.

In relation to business concluded with the State, the Act provides that such a company is compelled to provide a certificate from the Department confirming that they are entirely in compliance with the Employment Equity Act and the objectives set out. The company must make specific mention that it does not pay their employees less than the national minimum wage (set out in the Basic Conditions of Employment Act).

CONCLUSION

The companies’ actions will reflect in their Certificate of Compliance, which will confirm if the employer pays their employees more than the national minimum wage. In addition, the law requires employers to pay employees equal pay for equal work.  The sectorial numerical targets will significantly impact the company’s eligibility to contract with the state.

Being the diverse nation that South Africa is, the structural and political exclusions based on race, gender and other stereotypes are common to the nation. The Employment Equity Act is passed to promote equality and compel companies to provide their employees with equal opportunities. The foundation of this Act is to encourage fair treatment of all employees on all levels of the workforce.

Written by Avathara Avi Buldeo

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This article is provided for informational purposes only and should not be substituted for legal advice on any specific matter. Any opinions expressed herein are subject to the law as at the time of writing and will change in accordance with any change in the law. We recommend that you contact HJW Attorneys at info@hjw.co.za directly for advice applicable to your specific matter.