What is an Employment Equity Designated Employer?

In terms of Section (1), (21) and Schedule 4 of the EMPLOYMENT EQUITY ACT 55 of 1998, when the organisation’s number of employees OR annual turnover exceeds the prescribed threshold, then the company is classified as a DESIGNATED EMPLOYER and must comply with the Employment Equity act.

Employers who employ 50 or more workers.
Employers who employ less than 50 workers, but have a total annual turnover that is equal to or above the applicable annual turnover of a small business in terms of Schedule (4) of the EMPLOYMENT EQUITY ACT 55 of 1998.
Employers that employ 150 or more seasonal or temporary workers.
All new organisation that is, either reaching the 50 workers mark or meeting the requirements of the turnover threshold.
An employer bound by a collective agreement, appointed as a designated employer in terms of the Employment Equity Act.
Municipalities
Organs of State.

In terms of the EMPLOYMENT EQUITY ACT 55 of 1998, the designated employer must complete and implement the following:

Appoint a senior executive as the employment equity manager.
Elect, appoint and train an employment equity committee and workplace forum.
Consult with all employees on the process and procedures of employment equity.
Analyse, do projections and compile the Employment Reports.
Analyse, do projections and compile the Employment Equity Plan.
Implement and monitor affirmative action.
Implement all Employment Equity Code of Good Practice.
Submit all reports to the Department of Labour
Implement and monitor transformation progress
Keep administrative records.

What is the Employment Equity Annual turnover threshold?

In terms of the Employment Equity Act, all organisations with a turnover in excess of Schedule 4 of the Employment Equity Act must comply.

For your reference.

EMPLOYMENT EQUITY ACT 55 of 1998. Section (1)

“designated employer” means-

(a) an employer who employs 50 or more employees;

(b) an employer who employs fewer than 50 employees, but has a total annual turnover that is equal to or above the applicable annual turnover of a small business in terms of Schedule 4 to this Act;

(d) an organ of slate as defined in section 239 of the Constitution, but excluding local spheres of government, the National Defence Force, the National Intelligence Agency and the South African Secret Service; and

(e) an employer bound by a collective agreement in terms of section 23 or 31 of the Labour Relations Act, which appoints it as a designated employer in terms of this Act, to the extent provided for in the agreement;

EMPLOYMENT EQUITY ACT 55 of 1998. Section (21)

Report

21. (1) A designated employer that employs fewer than 150 employees must-

(a) submit its first report to the Director-General within 12 months after the commencement of this Act or, if later, within 12 months after the date on which that employer became a designated employer; and

(b) thereafter, submit a report to the Director-General once every two years, on the first working day of October.

(2) A designated employer that employs 150 or more employees must-

(a) submit its first report to the Director-General within six months after the commencement of this Act or, if later, within six months after the date on which that employer became a designated employer; and

(b) thereafter, submit a report to the Director-General once every year on the first working day of October.

(3) Despite subsections (I) and (2), a designated employer that submits its first report in the 12-month period preceding the first working day of October should only submit its second report on the first working day of October in the following year.

(4) The reports referred to in subsections (1) and (2) must contain the prescribed information and must be signed by the chief executive officer of the designated employer.

(5) An employer who becomes a designated employer in terms of this Act must-

(a) report as contemplated in this section for the duration of its current employment equity plan, and

(b) notify the Director-General in writing if it is unable to report as contemplated in this section, and give reasons therefor.

(6) Every report prepared in terms of this section is a public document.