Sectoral targets getting closer, tightening Employment Equity compliance

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The pending amendments to the Employment Equity Act (EEA) hold both procedural and substantive implications for designated employers. This is because a failure by employers to achieve black, women and persons with disabilities targets set by the Minister of Employment and Labour could mean exclusion from participating in tenders.

For example, the proposed Construction Industry sectoral targets will have to be achieved by 2025 by organisations in this sector. This means that they will have to review their employment policies and procedures, conduct better workforce planning based on anticipated workforce movement and capacitate their employment equity committees and line managers to ensure adherence to re-aligned employment equity plans.

These amendments, that should be promulgated by end Q1 or Q2 of 2020 latest, are a response to slow levels of transformation evidenced in the statistics gathered from more than 27000 reporting employers.

In addition to these sectoral targets, the Employment Equity Plans also have to address the analysis, interpretation and remediation of income differentials across occupational levels and in terms of the “vertical inequality” or “Gini Index” of an organization.

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