Employment Equity Audits

At least since 2010 the Department of Labour's auditing of an organisation's compliance with the provisions of the Employment Equity Act constitute a rigorous and high level evaluation of a designated's employer's employment equity efforts. The majority of South African companies are found wanting in their compliance with Act and face not only compliance order but also possible fines and penalties.

When reviewing the template below, how will your organisation fair when undergoing an audit. 

For assistance in meeting your organisation's employment equity obligations, contact us today. Whilst we cannot overcome an organisation's past non compliance, we can ensure that you meet your obligations in the future.

Director-General, Department of Labour v Win-Cool Enterprise (Pty) Ltd Labour Court D731/05 16 April 2007  Pillay D, J

“As far as the amount of the fine for non-compliance was concerned, the court stated that the purposes of the penalty were deterrence and prevention: the amount of the penalty has to be sufficiently high that it makes commercial sense for employers to comply than to risk a penalty. Factors to consider were:

–          the purpose of the EEA;

–          the extent of the contravention;

–          the period the contravention has endured;

–          the reason for not complying;

–          the maximum fine prescribed;

–          any relevant considerations relating to the respondent.

–          the willingness and intention of the employer to comply, its attitude and conduct;

–          any loss or damage suffered by the workforce or the DOL as a result of the contravention;

–          any profit derived from the contravention;

–          the extent to which the employer complies with all other laws and agreements that regulate employment;

–          the investment of time, money and other resources that the employer makes in the development of the workforce;

–          the effect of the penalty on employment;

–          the nature and size of the employer;

–          the industry in which the employer operates;

–          the area in which the employer is located; and

–          the deterrent effect of the penalty.

–          All the criteria have to be considered cumulatively. “

Download the DOL Employment Equity Audit template

EEA ASSESSMENT

INSTRUCTIONS FOR COMPLETION OF THIS DOCUMENT:

The employer must complete all sections of the audit form.

The employer must respond in the spaces provided in the audit form and where indicated provide supporting information or evidence as a schedule or annexure with the relevant heading.

The annexure, supporting information and evidence that is submitted must be numbered as per each section of the audit form.

All information must be completed in hard copy.

The completed form and attachments submitted to the Department of Labour at the following address: ……..

Section A: Employer Details

Organ of state:

Please indicate the employer type of your business below:

Details of authorised contact person:

Section B: Company / Organisational Information

1. Financial Information

1.1. Complete the following table in relation to income levels in the organisation as at the end of your last financial year:

1.2. Please provide us with the following financial information for your organisation for your last financial year.

1.3 As an attachment, please submit your published financial statements.

Section C: Achievement of Employment Equity

2. Analysis of your company’s EEA2 report indicates that your company is not yet equitably representative.  Please submit:

2.1. Complete the following table in relation to the employer’s employment equity profile as it is currently. Figures should be for the most recent calendar month. Please state clearly what month these figures are for _____________________[Month submitted for].

A = African, C = Coloured, I = Indian, W = White, M = Male, F = Female, ACI = African, Coloured and Indian

2.2 As an attachment, please submit details of the specific factors or circumstances that apply to your organisation and that may explain or justify relatively low rates of performance and progress toward achieving employment equity. Please note that it is in your interest to provide as detailed a narrative as possible of the reasons for your current performance in respect of employment equity representation. Your explanation should include details of:

The percentage increase or decrease  of total staff experienced in the last financial year:

2.2.1 at a total organisational level;

2.2.2. per occupational level (i.e. the percentage increase or decrease realised at each occupational level);

2.2.3. per race in each occupational level (i.e. the percentage increase or decrease realised for African, Coloured, Indian and White employees at each occupational level);

2.2.4. Detailed explanations for the percentage increase (if any) in non-designated group employees (i.e. white males) in the organisation;

2.2.5. Detailed explanations for the percentage decrease (if any) in designated group employees (i.e. African, Coloured, Indian, female and disabled employees) across each occupational level in the organisation;

2.2.7. specific details for the percentage increase or decrease of AFRICAN employees in your organisation.

2.3. As an attachment, please provide details of the steps that your organisation has taken in the last financial year to facilitate the realisation of a more equitable workforce. You may submit any supporting data or documents that you deem necessary.

Section D: Implementation of Employment Equity

3. Employment Equity Plan

3.1. Does your organisation have an Employment Equity (EE) Plan in place? An Employment Equity Plan[2] reflects a designated employer’s employment equity implementation programme.

3.1.1. If you ticked “No” please provide details as to why your organisation has no such plan.  This explanation must be forwarded as an annexure.

3.1.2. If you ticked “Yes”, please attach a copy of your EE Plan as an annexure, as well as documents detailing the chronological summary of the process followed during its (the plan) development.

3.1.3. Also outline how your EE plan link to the organization’s strategic business objectives and business plan.

4. Employment Equity Communication, Training and Awareness Raising

4.1. Did your company embark on a communication / awareness raising process with respect to employment equity?

4.1.1 If you ticked “No” please provide details as to why your organisation did not embark upon a communication/awareness raising process with regard to employment equity.  This explanation must be attached as an annexure.

4.1.2. If you ticked “Yes”, please provide a narrative account of this/these initiatives as an annexure. Please include the following details and supporting information:

4.1.2.1. The target audience for each initiative;

4.1.2.2. The method of communication adopted and the reasons for adopting this methodology

4.1.2.3. The dates on which these programmes / activities took place;

4.1.2.4 The details of external service providers used (if any) in this process;

4.1.2.5. Attendance registers (if any) for the above initiative/s; and

4.1.2.6. Copies of communiqués sent out in the last twenty four (24) months.

4.2. Did your company embark on a training/capacity building programme with respect to employment equity?

4.2.1. If you ticked “No” please provide details for this. Your explanation must be submitted as an annexure.

4.2.2. If you ticked “Yes”, please provide a narrative account of this/these initiatives as an annexure and should include the following details and supporting information:

4.2.2.1. The target audience for each initiative;

4.2.2.2. The dates on which these programmes / activities took place;

4.2.2.3. The details of external service providers used (if any) in this process; and

4.2.2.4. Attendance registers (if any) for the above training interventions.

5. Employment Equity Analysis

5.1. Did your company conduct a policies and procedures audit?

5.1.1. If you ticked “No” please provide details for this.   Your explanation must be submitted as an annexure.

5.1.2. If you ticked “Yes”, please provide a narrative account of this initiative as an annexure and include the following details and supporting information:

5.1.2.1. the date on which the audit took place;

5.1.2.2. a list of the policies and procedures that were audited;

5.1.2.3. the methodology used in auditing the policies and the reasons for adopting this methodology

5.1.2.4.   a copy of the results of the policies and procedures audit;

5.1.2.5. a copy of the recommendations in respect of the audit;

5.1.2.6. details of the progress made against the recommendations (i.e. what steps were taken to address the shortcomings identified, if any); and

5.1.2.7. details in respect of communication on the results of the audit.

5.2. Did your company conduct a workplace practices and work environment audit?

5.2.1. If you ticked “No” please provide details for this.  Your explanation must be submitted as an annexure.

5.2.2. If you ticked “Yes”, please provide a narrative account of this initiative as an annexure and include the following details and supporting information:

5.2.2.1.the date on which the audit took place;

5.2.2.2. the methodology used to identify barriers in the working environment and the reasons for adopting this methodology;

5.2.2.3. an explanation of the nature of the information sought;

5.2.2.4. a copy of the results from the research/analysis;

5.2.2.5. a copy of the recommendations in respect of the audit;

5.2.2.6. details of the progress made against the recommendations (i.e. what steps were taken to address the shortcomings identified, if any); and

5.2.2.7. details in respect of communication on the results of the audit.

5.3.  Did your company conduct an analysis of its workforce profile?

5.3.1.   If you ticked “No” please provide details.  Your explanation must be submitted as an annexure.

5.3.2.   If you ticked “Yes”, please provide a narrative account of this process as an annexure and include the following details and supporting information:

5.3.3.   the frequency with which you conduct this analysis;

the intention of the analysis;

5.3.4. the methodology or sources of information used to establish which employees are members of the designated groups and the reason for adopting this methodology; and

5.3.5. the stakeholders with whom you share the results of a workforce profile analysis.

6. Affirmative Action Measures

6.1. In developing your EE plan did your organisation set affirmative action measures[3]?

6.1.1. If you ticked “No” please provide details.  Your explanation must be submitted as an annexure.

6.1.2. If you ticked “Yes”, please provide a narrative account of this process as an annexure and include the following details and supporting information:

6.1.2.1. A copy of affirmative action measures that relate to the appointment of members from the designated groups.

6.1.2.2. Details of specific initiatives implemented in the area of recruitment and selection including:

a.   A copy of your recruitment and selection policy and procedure;

b.   A copy of the assessment tool (if any) that is used in your selection process;

c.   A copy of the scoring system (if any) that you use in your selection process;

6.1.2.3. A copy of affirmative action measures that relate to increasing the pool of available candidates. Please include details of specific initiatives (if any);

6.1.2.4. A copy of affirmative action measures that relate to the training and development of people from the designated groups.

6.1.2.5. Details of specific initiatives implemented in the area of training and development including:

a.   A copy of your training and development policy and procedure;

b.   A copy of your training and development strategy (if any);

c. Details and supporting documentation of specific training and development initiatives and/or programs targeted at people from the designated groups;

6.1.2.6.   A copy of affirmative action measures that relate to the promotion of people from the designated groups. Please provide as supporting information:

a. A copy of your internal promotions policy and procedure; and

b. Details of specific initiatives implemented in the area of promotions and internal transfers.

6.1.2.7. A copy of affirmative action measures that relate to the retention of people from the designated groups. Please provide as supporting information:

a.   Details of the types of initiatives embarked on in respect of retention of people from the designated groups; and

b.  Details of the effectiveness of these initiatives.

6.1.2.8. A copy of affirmative action measures that relate to the reasonable accommodation[4] of people from the designated groups. Please provide as supporting information:

a.   Details of the types of initiatives embarked on in respect of reasonable accommodation of people from the designated groups; and

b.  Details of the effectiveness of these initiatives.

6.1.2.9. A copy of affirmative action measures and initiatives put in place to ensure that the corporate culture affirms diversity in the workplace and facilitates the achievement of employment equity.

7. TARGET SETTING

7.1. In developing your EE plan did your organisation set numerical goals?

7.1.1. If you ticked “No” please provide details.  Your explanation must be submitted as an annexure.

7.1.2. If you ticked “Yes”, please provide a narrative account of this process as an annexure and include the following details and supporting information:

7.1.2.1. The date on which the numerical goals were last reviewed;

7.1.2.2. The most recent date on which new numerical goals were set;

7.1.2.3. A copy of current numerical goals;

7.1.2.4. The methodology used to set numerical goals and the reasons for why this methodology was chosen;

7.1.2.5. The types of information / benchmarking information used to assist in the setting of numerical goals;

7.1.2.6. Economic and financial factors taken into account as part of the process;

7.1.2.7. Any organisational factors that impacted on the setting and achievement of numerical goals;

7.1.2.8. Progress made in respect of addressing the under-representation of people from designated groups in each occupational category and level in the organisation;[5] and

7.1.2.9. The details in respect of consultation of numerical goals with supporting evidence including:

7.1.2.10. Attendance registers of meetings in which the numerical goals were discussed and consulted on;

7.1.2.11. Names and details of employees (including their position within your organisation) who attended the consultation session/s;

7.1.2.12. Details of the date, time and duration of the meeting/s to consult on the numerical goals; and

7.1.2.13. Minutes kept.

8. Consultation

8.1. Does your organisation have a forum/s set up specifically and exclusively for dealing with employment equity?

8.1.1. If you ticked “No” please provide details.  Your explanation must be submitted as an annexure.

8.1.2. If you ticked “Yes”, please provide a narrative account of this process as an annexure and include the following details and supporting information:

8.1.2.1. The way in which the employment equity forum was constituted;

8.1.2.2. The function and mandate of the forum;

8.1.2.3. Standard operating procedures (if any);

8.1.2.4. A list of the types of information presented to the employment equity forum for consultation;

8.1.2.5. A list of the current members on your employment equity forum including their names, race, gender, disability status and position in the organisation;

8.1.2.6. Details of how often the employment equity forum meets;

8.1.2.7. Details of the type of training provided to the employment equity forum, the date on which this took place and the duration of the training.

8.1.2.8.  A copy of attendance registers for all employment equity forum meetings held in the last twelve (12) months;

8.1.2.9. A copy of agendas for all employment equity forum meetings held in the last twelve (12) months;

8.1.2.10. A copy of the minutes from all employment equity forum meetings held in the last twelve (12) months;

8.1.2.11. Recommendations from the employment equity forum in respect of employment equity implementation; and

8.1.2.12. Details of the way in which relevant information and recommendation from the employment equity forum is/was considered.

8.1.2.13.  Any other measures arising out of the consultative process.

9. Monitoring and Evaluation

9.1. Does your organisation have a monitoring and evaluation framework or tool?

9.1.1. If you ticked “No” please provide details for this.  Your explanation must be submitted as an annexure.

9.1.2. If you ticked “Yes”, please provide a narrative account of this process as an annexure and include the following details and supporting information:

9.1.2.1. The mechanisms used to monitor the plan;

9.1.2.2. Benchmarks used to facilitate assessment of reasonable progress;

9.1.2.3. The frequency of evaluation;

9.1.2.4. Records of progress reports provided to the consultative forum; and

9.1.2.5. Copies of documentation to employees on progress made and or details of staff meetings were progress on the EE plan was discussed.

Section E: Employment of People with Disabilities

10. Reasonable accommodation:

10.1. In reasonably accommodating people with disabilities in the workplace, does your organisation (please tick yes or no for each of the options below):

10.2. Please provide a narrative account of and attach any documentation, or details of specific programmes or initiatives that your organisation has embarked on in respect of employment and reasonable accommodation of people with disabilities as an annexure.

10.3. If you company has not embarked on any activity or program to employ or reasonably accommodate people with disabilities, please provide reasons for this in an annexure.  Please provide a narrative account of this process and include the following details and supporting information:

Section F: HIV/AIDS in the Workplace

11. Management of HIVAIDS

11.1. Does your organisation have an HIV/AIDS policy in place (either as a specific HIV/AIDS policy or part of a broader policy such as a policy on life threatening illness)?

11.1.1. If you ticked “No” please provide details for this in an annexure.

11.1.2. If you ticked “Yes”, please provide a narrative account of this process as an annexure and include your company’s HIV/AIDS Policy and include details on the following:

11.2. Does your organisation have an HIV/AIDS programme in place that is aimed at (please tick yes or no for each of the options below):

11.3. In managing HIV/AIDS in the workplace does your company (please tick yes or no for each of the options below):

SECTION G: GENERAL

12. Please provide details of any other information that you believe is relevant for the  Labour Inspector when assessing your organisation’s level of substantive compliance with the Employment Equity Act as an annexure.

In an annexure please provide a detailed account of the steps you believe that your organisation can take or implement to become employment equity compliant.

Section H: Signature of Chief Executive Officer

I, the undersigned

___________________________________________________

do hereby confirm and say that:

I am the _______________________________________________________________

(please provide full details of the person deposing to this affidavit including full name, address and position in the organisation)

I have read and understood the instructions set out of this form.

I confirm that the information submitted with and in this application is true, correct and accurately captures all relevant information about the respondent.

In order to allow for proper verification of information submitted I hereby authorise any official of the Department of Labour to investigate the authenticity of the information presented in this document.

Signed at       __________________________________________

This _____________day of______________________________2011