User guide - Section 1

Why the Employment Equity Act?

South Africa has a legacy of discrimination in relation to race, gender and disability that has denied access to opportunities for education, employment, promotion and wealth creation to the majority of South Africans.

The Employment Equity Act was passed to address this legacy and has two main objectives:

• To ensure that our workplaces are free of discrimination; and
• To ensure that employers take active steps to promote employment equity.

Did you know that?

The Breakwater Monitor Report of July 1999 (will be available later) indicates that

In Management

• White men and women hold 84% of management positions in South African companies
• Males of all races hold 83% of management positions

With regard to Promotions

• White employees still constitute about 74% of management promotions and 54% of skilled promotions.

In terms of Recruitment

• General recruitment figures show that black men are most targeted, BUT
• Managerial and skilled recruitment figures show that white males are still favoured. For example, managerial recruitment figures show that the recruitment rate for white males is 46% followed by white women at 19% and black males at 18%.

Why should employers implement employment equity?

Not only is there a legal requirement, but good human resource management is increasingly being regarded as the differentiating factor between businesses.

It follows that to invest in and develop all our people will contribute to business sustainability and future returns.

Having a workforce that reflects the demographics of the country can improve market share, better understanding of markets, and thus the ability to service all current or prospective clients.

Who is affected by Chapter 3?

All designated employers and their employees, particularly those employees from designated groups.

Who are designated employers?
Designated employers include

• employers who employ 50 or more employees
• employers who employ fewer than 50 employees but whose total annual turnover equals or exceeds the applicable turnover of a small business in terms of Schedule 4 of the Act.
• an employer appointed by a collective agreement
• municipalities
• organs of state except for

• the National Defence Force
• the National Intelligence Agency
• the South African Secret Service

Who are designated groups?
Designated groups are

• Black people which means Africans, Coloureds and Indians
• Women
• People with disabilities

What if employee numbers vary from time to time and only occasionally reach the 50 mark?

Employers who have 50 or more employees at the date on which reports are due, will be required to report.

Similarly employers who have 150 or more employees at the date on which reports are due, will be required to comply with the reporting requirements of larger employers.

Should employers avoid reporting requirements by manipulating employee numbers around these dates, they may be subject to a Director-General’s review.

1.6 What are the duties of employers?

Chapter 3 requires that employers take certain affirmative action measures to achieve employment equity.

These measures are:

• Employers must consult with unions and employees in order to make sure that the plan is accepted by everybody
• Employers must analyse all employment policies, practices and procedures, and prepare a profile of their workforce in order to identify any problems relating to employment equity
• Employers must prepare and implement an employment equity plan setting out the affirmative action measures they intend taking to achieve employment equity goals
• Employers must report to the Department of Labour on the implementation of their plan in order for the Department to monitor their compliance
• Employers must also display a summary of the provisions of the Act in all languages relevant to their workforce. These summaries will be made available by the Government printers in due course.

"The Employment Equity Act is one of the most significant pieces of legislation to have been passed by the first democratic government of South Africa"

Sipho Pityana, Director-General of Labour
Stakeholder forum on the Employment Equity Act, 27 may 1999

Contents

Section 2

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