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Section 21 of the Employment Equity Act (55 of 1998) as amended, places a duty on all “designated employers” (i.e. all employers employing more than 50 employees or if less, with total annual turnover greater than the amounts reflected in the Turnover Threshold Table set out in Schedule 4 of the Act and as illustrated below) to submit an Employment Equity Report (EEA2) as well as an Income Differential Report (EEA4) to the Director General of the Department of Labour (DoL) annually on 1 October each year (or by 15 January each year if submitted electronically on the DoL’s Website Portal [www.labour.gov.za]).

The current Turnover Threshold Table set out in Schedule 4 of the Act:

Industry Sector Total Annual Turnover
Agriculture R6,000,000
Mining and Quarrying R22,500,000
Manufacturing R30,000,000
Electricity, Gas and Water R30,000,000
Construction R15,000,000
Retail and Motor Trade and Repair Services R45,000,000
Wholesale Trade and Commercial Agents and Allied Services R75,000,000
Catering, Accommodation and Other Trade R15,000,000
Transport, Storage and Communications R30,000,000
Finance and Business Services R30,000,000
Community, Social and Personal Services R15,000,000

The formats of the two Reports are prescribed (Form EEA2 and EEA4 respectively)). In order to use the online submission option, you must register for Employment Equity online reporting on the DOL website.

The Employment Equity Report requires you to establish a Workforce Profile illustrating your company’s demographics in terms of Gender, Race and Occupational Level, as well as to report on Workforce Movement (recruitment, promotion and termination) and relevant Training conducted during the reporting year. Numerical Goals (2 – 5year) and annual Numerical Targets must be projected as well as reporting on Barriers to Affirmative Action and measures planned to address these barriers as well as Consultation undertaken.

The Income Differential Report requires you to add total annual remuneration values to the workforce profile in order to establish whether there are any income differentials that need to be explained.

Fines may be  incurred by the employer should they be found to be non-compliant in any of the 7 compliance areas (as listed below). The fines commence at RM1,5 or 2% of annual turnover to a maximum of RM2.7 or 10% of annual turnover.

The seven compliance areas are; Awareness, Consultation, Analysis, Planning, Implementation, Reporting and Measuring.

You should ensure that you receive specialist advice by calling Human Alliance today and let us assist you in ensuring your compliance in all these areas, making your life a little easier and less stressful.

By Andrea Grant-Smith, Senior HR Consultant

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