The Employment Equity trap

The Employment Equity trap

The Employment Equity trap

Have you ever wondered if the government had a sinister plan to achieve its political goals? Well, look at this and decide for yourself: during a speech by the Department of Labour, the Minister said that companies are not transforming and not achieving their transformation targets. After the 2023 Employment Equity Bill was signed without consultation, the government received massive backlash from companies. The government lost the UN court case, and the bill was rejected.

 

But they are not backing down; with the help of some nefarious IT company, they integrated the Department of Labour’s online reporting system with a machine learning system, welcoming South Africa to the age of monitoring and fascism. So beware of your 2023/2024 submission, it will determine your company’s future.

 

Do not try to be a hero; don’t incriminate yourself! Before you submit your EEA2 and EEA4 employment equity reports to the Department of Labour, stop and reconsider your employment equity targets in Section SECTION E: NUMERICAL GOALS & TARGETS of the EEA2 report. The higher you set your targets, the higher the risk of failure and the penalty for not achieving them.

 

Your best option.

  1. Calculate your terminations from 2022 – 2023, and just for argument, let’s assume 10 employees. This means that you would need to change the company’s race and gender constituency by 10 employees annually.
  2. But now look at your organisation’s health: Is it doing financially well enough to hire new employees should they leave? If that answer is no, then you won’t replace employees, which should be reflected in your targets. But wait, there is more.
  3. What are your prospects for growth and new customers for 2024? The country is in a recession, with an inflation rate for 2024 of 5% and a growth rate of 0.9%

 

So you know that the company is not doing well, all costs are increasing, and there will be no growth. I still have that superhero feeling. If not, then you may just save your company. Now, reduce those numerical targets by 75%, which will be closer to the truth.

 

You may ask why there is all this negative noise. The answer is simple: during the 2023 Department of Employment and Labour (Del) roadshow, DeL indicated they would switch to an automated intelligent electronic system in 2024 to retain all information for the next reporting cycle. The information captured in 2023 will be used to determine the numerical targets for 2024 onwards.

 

So, if you “plan” to replace terminated employees with the same number of employees of different races and genders and don’t achieve the exact number you planned, then you are non-compliant. If the company does not comply with its goals and targets, it will not be issued a Compliance Certificate and will be in breach of the Act. In which case, the new Inspection and Enforcement Services will take legal steps against the organisation.

 

So before submitting any documents and gorgeous promises, please consider your targets very, very carefully. It is of utmost importance that you don’t over-estimate your numerical goals because it will come back to bite you. Please speak to us if you do not know how to calculate this goal. Please forward this to your customers and clients.

 

Find more information on implementing employment equity in my other articles or visit our website to enrol for the next employment equity training course.

Are you having difficulty with employment equity?

Please don’t hesitate to contact me.

By Stephan du Toit

Senior Advisor Employment Equity.

Website: employmentequity.co.za

eMail: info@employmentequity.co.za

WhatsApp: +27825613022

Landline: +27212505007

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Stephan du Toit

Stephan du Toit

Senior Advisor Employment Equity. Specialist in emergency Employment Equity and Labour compliance for organisations. Find more information on implementing employment equity in my other articles or visit our website to enroll for the next employment equity training course.

Are you having difficulty with employment equity? Please don't hesitate to contact me.

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