employment equity strategy - ee assist of work_ee assist website.pdfemployment equity strategy 1 ......

EMPLOYMENT EQUITY STRATEGY

SCOPE OF WORK

Employment Equity Strategy

1

Physical address: 13 Casa Baca

617 Jacqueline Drive

Garsfontein

Pretoria

Telephone Number: 012 993 4363

E-mail address: [email protected]

Company registration number: 2011/002100/07

VAT Number: VAT exempt

Table of contents

PURPOSE OF THE ACT ........................................................................................................................................ 3

WHO NEEDS TO COMPLY ................................................................................................................................... 4

COMPLIANCE REQUIREMENTS ........................................................................................................................... 5

Section 13 ...................................................................................................................................................... 5

Section 15 ...................................................................................................................................................... 5

Section 16 & 17 .............................................................................................................................................. 5

Section 18 ...................................................................................................................................................... 5

Section 19 ...................................................................................................................................................... 5

Section 20 ...................................................................................................................................................... 6

Section 21 ...................................................................................................................................................... 6

Section 22 (Listed entities only)...................................................................................................................... 6

Section 23 ...................................................................................................................................................... 6

Section 24 ...................................................................................................................................................... 6

Section 25 ...................................................................................................................................................... 6

Section 26 ...................................................................................................................................................... 6

Section 27 ...................................................................................................................................................... 6

Section 43 and 44 .......................................................................................................................................... 6

PENALTIES FOR NON COMPLIANCE .................................................................................................................... 7

BENEFITS OF BECOMING EE COMPLIANT ........................................................................................................... 8

BUSINESS STRATEGY FOR EMPLOYMENT EQUITY COMPLIANCE ......................................................................... 9

Scope of Work to be performed annually ....................................................................................................... 9

MONTHLY RETAINER FEES................................................................................................................................ 15

Included ....................................................................................................................................................... 15

mailto:[email protected]


2

Additional fees ............................................................................................................................................. 15

CONCLUSION ................................................................................................................................................... 15


3

PURPOSE OF THE ACT

The purpose of the Act is to achieve equity in the workplace by promoting equal opportunity and fair

treatment in employment through the elimination of unfair discrimination.


4

WHO NEEDS TO COMPLY

A Designated Employer means an Employer who employs 50 or more employees, or has a total annual turnover

as reflected in the following schedule:

Sector or sub-sectors in accordance with the Standard Industrial Classification

Total annual turnover

Agriculture R 6,00 m

Mining and Quarrying R 22,50 m

Manufacturing R 30,00 m

Electricity, Gas and Water R 30,00 m

Construction R 15,00 m

Retail and Motor Trade and Repair Services R 45,00 m

Wholesale Trade, Commercial Agents and Allied Services R 75,00 m

Catering, Accommodation and Other Trade R 15,00 m

Transport, Storage and Communications R 30,00 m

Finance and Business Services R 30,00 m

Community, Social and Personal Services R 15,00 m


5

COMPLIANCE REQUIREMENTS

A Designated Employer Entity need to undertake to comply with all the provisions of the Act, and in particular

(amongst others), Sections 13, 15, 16, 17, 18, 19, 20, 21, 24 and 27 of the Act.

Section 13 Section 13 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must

implement affirmative action measures for Designated Groups to achieve employment equity by consulting

with employees, conduct an Economically Active Population (EAP) analysis and prepare and Employment

Equity Succession Plan.

Section 15 Section 15 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must

implement affirmative action measures intended to ensure that suitably qualified employees from

Designated Groups have equal opportunity and are equitably represented in all occupational categories

and levels of the workforce.

Section 16 & 17 Section 16 and 17 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must

take reasonable steps to consult with representatives of employees representing the diverse interests of

the workforce on conducting an analysis and preparation of this Employment Equity Succession Plan.

Section 18 Section 18 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must disclose

relevant information to the consulting parties (CEO, Employment Equity Manager, Employment Equity

Forum and employees).

Section 19 Section 19 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must conduct an

analysis of employment policies, practices, procedures and working environment so as to identify employment

barriers that adversely affect members from Designated Groups. The analysis must also include the

development of a workforce profile to determine to what extend Designated Groups are under-represented in

the workplace.


6

Section 20 Section 20 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must prepare and

implement an Employment Equity Plan which will achieve reasonable progress towards employment equity in

that Employer’s workforce.

Section 21 Section 21 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must submit its first

report to the Director General (Department of Labour) within 12 months after the commencement of the Act

(1999), and thereafter every year.

Section 22 (Listed entities only) Section 22 of the Employment Equity Act nr 55 of 1998 stipulates that every Designated Employer that is a Public

Company must publish a summary of a report required by Section 21 in that Employers annual financial report.

Section 23 Section 23 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must, before

the end of the term of its current Employment Equity Plan, prepare a subsequent Employment Equity Plan.

Section 24 Section 24 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must assign

one or more Senior Manager(s) to ensure implementation and monitoring of the Employment Equity Plan

and MUST make available necessary resources for this purpose.

Section 25 Section 25 of the Employment Equity Act nr 55 of 1998 stipulates that an Employer must display at its

workplace (where it can be read by employees) a notice in the prescribed form, informing them about the

provisions of the Act.

Section 26 An Employer must establish, and for the prescribed period, maintain records in respect of its workforce, its

Employment Equity Plan and any other records relevant to its compliance with the Act.

Section 27 Section 27 of the Employment Equity Act nr 55 of 1998 stipulates that every Designated Employer, when

reporting, must submit a statement, as prescribed, to the Employment Conditions of Commission

established by section 59 of the Basic Conditions of Employment Act, on the remuneration and benefits

received in each occupational level of that Employer’s workforce.

Section 43 and 44 Review and outcome of the Director General’s review.


7

PENALTIES FOR NON COMPLIANCE

Current penalties for non-compliance with the Act as per the Amendment Bill are as follow:

Contravention Section 16, 17, 19, 22, 24, 25, 26 and 43

Section 20, 21, 23 and 44 (b)

No previous R 1 500 000 Greater of R 1 500 000 or 2% of TO

One previous R 1 800 000 Greater of R 1 800 000 or 4% of TO

Previous within 12 months or two previous

R 2 100 000 Greater of R 2 100 000 or 6% of TO

Three previous for same contravention


Four previous for same contravention


Refer to the Scope of Work for requirements of the Act.


8

BENEFITS OF BECOMING EE COMPLIANT

The following are benefits of becoming EE Compliant:

- Eliminate fines and penalties;

- Could have a positive impact on your BEE score (as the BBBEE Codes of Good Practice refers to

Employment Equity as one of the elements for Verification);

- If dealt with correctly, Employment Equity compliance (including EE quarterly meetings) could create a

sense of belonging to your EE Manager, Employment Equity Forum (EEF) and other employees;

- If dealt with correctly, Employment Equity compliance (including EE quarterly meetings) could create a

positive attitude amongst your EE Manager, Employment Equity Forum (EEF) and other employees by

means of exchanging different perspectives;

- Brainstorming amongst your EE Manager, Employment Equity Forum (EEF) and other employees could

create opportunities for more effective and efficient transformation in the workplace;

- Extensive training will be offered to the EE Manager and Employment Equity Forum (EEF), increasing

their skills levels and

- With a well thought out (and implemented) Employment Equity Succession Plan, Entities are able to

promote and manage diversity within the entire workforce – enabling them to create and service

emerging markets.


9

BUSINESS STRATEGY FOR EMPLOYMENT

EQUITY COMPLIANCE

Scope of Work to be performed annually

EE Assist 1000 (Pty) Ltd could establish the status of your Entities’ Employment Equity Compliance and provide

the following services:

DESCRIPTION DELIVERABLE

PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

1

Consultation with CEO / MD / Directors / Members or

Owner(s) of Designated Employer on requirements of

the Employment Equity Act number 55 0f 1998

(hereinafter the Act) and the Amendment Bill gazette

(16 January 2014).

No cost involved (except travel).

Scope of Work N/A N/A

2 Audit procedure and checklist establishing the current

status in compliance with the Act.

Audit

procedure

checklist – start

of engagement

N/A N/A

3 Coordinating of process to complete EEA1 forms by

ALL employees (EE File / personnel files).

EEA1 form N/A N/A

4

Coordinating of process to formally establish the

Employment Equity Forum (hereinafter EEF) as

stipulated in Paragraph 7.2.8 of the Codes of Good

Practice: Preparation, implementation and monitoring

of Employment Equity Plans (hereinafter the Codes).

Once established, ensure annually that EEF complies

Nomination

letter

Acceptance

letter

Rejection letter

N/A N/A


10


PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

with the Codes. EE Assist to draft the following:

- Nomination letter in each occupational level;

- Acceptance letter in each occupational level;

- Rejection letter in each occupational level

(where necessary).

(Client to count results to verify EE Representative to

be appointed).

5

Coordinating of process to formally appoint

Employment Equity Senior Manager as required in

Chapter 3 Section 24 of the Act. Once appointed,

ensure annually that Employment Equity Senior

Manager qualifies as prescribed by the Codes.

Senior EE

Manager

appointment

draft letter

R 1 500 000 to

R 2 700 000

N/A

6

Coordinating of process to formally appoint EEF

Representatives as stipulated in Chapter 3 Section 16

of the Act. EE Assist to provide draft appointment

letter.

EE

Representatives

appointment

draft letters

R 1 500 000 to

R 2 700 000

N/A

7

Employment Equity training provided to the

Employment Equity Senior Manager and the EEF

Representatives on the following:

- Summary of the Act;

- New Amendment Bill and its requirements;

- Codes of Good Practice;

- Required Policies and

- Employment Equity Succession Plan

(hereinafter EESP) requirements.

Training

material:

Presentation

Summary of Act

Amendment

Bill

Codes

Responsibilities

N/A N/A

8 Affirmative Action Policy (hereinafter AA Policy) and

measures implemented as stipulated in Chapter 3

AA Policy N/A N/A


11


PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

Section 15 of the Act.

9

Development and implementation of a Non-

discrimination Policy (hereinafter ND Policy) as

stipulated in Chapter 2 Section 5 to 11 of the Act.

ND Policy N/A N/A

10 Development and implementation of an EESP as

required in Chapter 3 Section 20 of the Act. EESP N/A

Greater of R

1 500 000 or 2%

to 10% of annual

turnover

11

Development of a summarised EESP (to ensure better

understanding by Semi-skilled and Unskilled

employees).

Summarised

EESP N/A N/A

12

Development of an Employment Equity Analysis

(hereinafter EAP analysis) as required in Chapter 3

Section 19 of the Act.

EAP Analysis

Stats SA targets

CEE report

Graphs - Under

and Over

achievements

List of barriers

R 1 500 000 to

R 2 700 000

N/A

13 On-site consultation and development of EEA2 report

(Workforce Profile). Organogram N/A

Greater of R

1 500 000 or 2%

to 10% of annual

turnover

14

Successful on-line submission of EEA2 report to the

Department of Labour as stipulated in Chapter 3

Section 21 by the Employment Equity Act number 55

of 1998 (hereinafter the Act).

EEA2 report

& Successful

submission

letter received

N/A

Greater of R

1 500 000 or 2%

to 10% of annual

turnover


12


PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

from DOL

15 On-site consultation and development of EEA4 report

(Income Differentials). Organogram N/A

Greater of R

1 500 000 or 2%

to 10% of annual

turnover

16

Successful on-line submission of EEA4 report to the

Department of Labour as stipulated in Chapter 3

Section 21 by the Act.

EEA4 report

& Successful

submission

letter received

from DOL

N/A

Greater of R

1 500 000 or 2%

to 10% of annual

turnover

17

Recommendations of goals and targets to CEO,

Employment Equity Manager and EEF prior to

submissions of EEA2 and EEA4 reports.

EEA2 report N/A

Greater of R

1 500 000 or 2%

to 10% of annual

turnover

18

Consult and attempt to reach agreement with the

CEO, Employment Equity Manager and EEF

Representatives as stipulated in Chapter 3 Section 16

and 17 of the Act on the following:

AA Policy;

ND Policy;

EESP;

EAP Analysis;

EEA2 report prior to submission to the DOL

and

EEA4 report prior to submission to the DOL.

As per above R 1 500 000 to

R 2 700 000

N/A

19

Development and implementation of an Employment

Equity Successive Plan as stipulated in Chapter 3

Section 23 by the Act. Needs to be developed six

EE Successive

Plan N/A

Greater of R

1 500 000 or 2%

to 10% of annual


13


PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

PENALTY FOR

NON

COMPLIANCE

WITH THIS

SECTION

months prior to expiry of EESP. turnover

20

Provide all of the above by facilitating quarterly

meetings (Travel time, all travel cost and

accommodation included).

Meeting

minutes Various Various

21

Verifying that records are kept in hardcopy. Audit

procedure to be performed every year as stipulated in

Chapter 3 Section 26 by the Act.

Designated Employer to ensure that all parties are

informed on publication thereof by means of

communication method as per EESP.

Year end Audit

Procedure

Checklist

EE File

R 1 500 000 to

R 2 700 000

N/A

22

Summary of the Act to be displayed and duty to

inform as stipulated in Chapter 3 Section 25 by the

Act.

Summary of the

Act

EE File

R 1 500 000 to

R 2 700 000

N/A


14

ADDITIONAL USEFUL IMFORMATION PERTAINING TO EMPLOYMENT EQUITY

23

The Director General (hereinafter DG) may:

- Request your EESP;

- Request your EAP Analysis;

- Request any book, record, correspondence,

document or information relevant to

compliance with the Act;

- Request meeting with Designated Employer

to discuss EESP and implementation thereof;

- Request meeting with Employee, EEF, CEO,

employees, Union or any other person who

may have information relevant to review

as stipulated in Chapter 3 Section 43(2) by the Act.

N/A R 1 500 000 to

R 2 700 000

N/A

24

The DG may make recommendation to Designated

Employer stating:

- Recommendations regarding EESP;

- Period within which steps have to be taken;

- Any other prescribed formats

as stipulated in Chapter 3 Section 44(b) by the Act.

N/A N/A

Greater of R

1 500 000 or 2%

to 10% of annual

turnover


15

MONTHLY RETAINER FEES

Included

The monthly retainer amount includes the following in the areas as per our website:

- Consultation and deliverables as per the Scope of Work;

- Four quarterly meetings as per the Scope of Work (of between 2 – 3 hours, depending on client needs);

- Parking fees;

- Toll fees;

- Travel time costs for the four quarterly meetings as per the Scope of Work and

- Travel costs (fuel) for the four quarterly meetings as per the Scope of Work.

Note that additional travel fees may be charged for areas not specified on our website.

Additional fees

Where an Entity requests an additional meeting for whatsoever reason (over and above the four scheduled

meetings) the following additional costs may be charged by EE Assist 1000 (Pty) Ltd:

- Parking fees;

- Toll fees;

- Travel time costs (at R 100.00 per hour)

- Additional time spent at Entity / Client (at R 450.00 per hour) and

- Travel costs (fuel at R3.00 per kilometer from Pretoria East to Entity / Client premises)

The above mentioned additional fees will be agreed upon beforehand.

CONCLUSION Please contact EE Assist 1000 (Pty) Ltd for a formal Scope of Work and Service Level Agreement.

employment equity strategy - ee assist of work_ee assist website.pdfemployment equity strategy 1 ......

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