As we stated in a previous article, all employers – whether or not you’re designated employer – are required to comply with the Employment Equity Act (EEA). Non-designated employers must comply with Chapter II while designated employers must comply with both Chapters II and III. If you, as an employer, do not comply with the EEA provisions you will be issued with a compliance order which will force you to comply with the provisions. And if you don’t comply with the Compliance Order, there are more onerous liabilities that you’ll be faced with.
What is a compliance order?
If you are not found to be complying with the EEA, you’ll be issued with an EEA6 form by a labour inspector. This is a simply two-page document which simply states your company’s details as well as what you are required to do in terms of making sure that your company is in order. The options that are given are the following:
- Consult with employees about, among others, the company’s employment equity plan,
- Conduct an analysis of its employment policies, practices and procedures as well as the company’s working conditions to identify barriers to the inclusion of previously disadvantaged people,
- Publish their employment equity report,
- Assign responsibility for the employment equity plan to one or more senior managers
- Inform employees about their rights and responsibilities under the EEA.
Until this notice is complied with, the employer must prominently display the compliance notice in their workplace.
Very important for employers to know about compliance orders
If you, as an employer, do not comply with a compliance order the Department of Labour (DoL) is entitled to approach the Labour Court to force compliance with the compliance order. If there is still non-compliance, the LC can enforce penalties ranging from R1.5 million to 2% of the company’s turnover.
As can be seen from the above, if you don’t comply with a compliance order the penalties could be incredibly severe. Make sure that you are on top of your Employment Equity requirements and enlist our Employment Equity Consulting Services. Click here for more information.