Written by Ivan Israelstam, Chief Executive of Labour Law Management Consulting.
You could soon be headed for Labour Court if if you have not complied with the Employment Equity Act (EEA) and its new amendments. If you have 50 or more employees or your annual business turnover exceeds the prescribed turnover threshold the affirmative action requirements of the EEA apply to you.
However, even if you have fewer than 50 employees and fall below the business turnover threshold the new equal pay laws apply to you.
According to the EEA all designated employers are breaking the law if they fail to:
Do a detailed employment equity (EE) Analysis
- Prepare and submit regular EE Reports
- Prepare and implement a detailed EE Plan. This is a comprehensive strategy for recruiting, ‘accommodating’ and developing members of designated groups.
- Set and meet regular EE targets for achieving the required number of members of designated groups at all levels of the workplace.
- Consult with a full cross-section of their workforce and representative trade union on your EE analysis, report, plan and target.
- Make available to employees all the documents referred to above.
- Make special arrangements to ensure that black, coloured, Indian, female and disabled employees are able to remain and to advance with the organisation.
- Eliminate barriers to employment of members of designated groups.
While none of these requirements are impossible they will be very much more difficult to achieve with the DOL inspectors breaking down your door. It is important to bear in mind that, once you have set up your EE system, the task of EE compliance becomes very much easier.
The introduction in June 2015 of the new Equal Pay for Work of Equal Value legislation has added a huge obligation on all employers of all sizes to ensure that they are not unfairly differentiating between employees as regards their remuneration, benefits and other terms and conditions of employment.
In the landmark case of Maphumalo & another v Ilembe District Municipality (KNDB12131-14 23 CLL volume 25 (2) September 2015) the commissioner ordered the employer to increase the pay grades of the applicant employees by two levels because their work was of equal value to that of their colleagues. A properly administered job grading system would have prevented the need for this litigation.
As an employer you will therefore need the help of a labour law expert to devise your job grading system, EE analysis, report, plan, target and consultation system. Otherwise, at Labour Court, you will not only be forced to implement EE and to pay crippling fines; you may also be faced with having to meet imposed EE targets and to increase employees’ pay.
Details:
To attend our 23 October 2015 seminar in Johannesburg on HOW TO WIN AT THE CCMA please contact Ronni via 0845217492 or ronni@labourlawadvice.co.za.
