Tag Archive | EEA

Turnover fines for employment equity breaches

Getting tough…

Ntsoaki+MamashelaFines that have been unrevised for a number of years for breaches in employment equity in terms of the Employment Equity Act are now proposed as being implemented on the basis of a direct link to balance sheet turnover, meaning a major increase in the size of penalty for medium and big business. The department of labour (DOL) have now briefed Parliament on the Employment Equity Act (EEA) Amendment Bill which was tabled during the last session of Parliament.

Hearings before Parliament from business are expected to be vociferous in their response. Business and industry have been facing a raft of new and more radical amendments to existing labour laws indicating a move from the voluntary nature of BEE participation through charters, to a legislative background of enforcement.

DOL suggested business and industry has been riding roughshod over the law which had been unrevised for nearly 15 years and it was  time now that provision was made in their budgets for considerably more than the “negligible fines” of the past.

New power to labour

The fourth of four of new labour laws, the EEA Amendment Bill, was presented to Parliament in a briefing to the portfolio committee on labour by the department’s equity director, Ntsoaki Mamashela (see picture).   The Labour Relations Amendment Bill, the Employment Services Bill and the Basic Conditions of Employment Amendment Bill have all be endorsed by the Nedlac process, following approval by cabinet; the Labour Relations Act changes failing to pass in the last parliamentary session due to lack of a quorum.

Ms Mamashela assured business that they had “nothing to fear” if they followed the basic rules which were now well-known throughout the country. The proposed amendments demand that the proportions of demographics on an employer’s staff role reflect the demographics of the territory in which the business or industry operates.

The proposed EEA changes apply to companies with 150 employees or more and the Bill makes it quite clear that the proposals refer to “black” people only.

Wording specific about racial categories

The wording of the new Bill states unambiguously “where under representation of people from designated groups has been identified by the analysis, the numerical goals to achieve the equitable representation of suitably qualified people from designated groups within each occupational [category and] level in the workforce, the timetable within which this is to be achieved, and the strategies intended to achieve those goals are not met”, the Bill states, then the minister may apply to the labour court for a fine to be imposed.

The fines are extensive, particularly where previous convictions are concerned, and reach nearly R3m. The department of labour  is also, the proposals state, given the right to refer those cases who have not made returns, or made false returns in respect of their employment equity registers, directly to the labour courts.

Public hearings before the portfolio committee continue.

Refer previous articles in this category
http://parlyreportsa.co.za//uncategorized/business-and-government-miles-apart-on-labour-laws/
http://parlyreportsa.co.za//cabinetpresidential/labour-nobody-at-top-biting-the-bullet/
http://parlyreportsa.co.za//cabinetpresidential/parliament-delays-process-on-labour-relations-bill/

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