A key aspect for an entity who wants to score points under Employment Equity, and who wants to qualify as an Empowering Supplier, is to understand when he is required to submit an Employment Equity Report to the Department of Labour.
For both a Qualifying Small Enterprise and Generic Enterprise, it is important to understand the definition of the term Designated Employer. A Designated Employer is an employer who has more than 50 workers or, alternatively, whose turnover is more than the industry under which they are classifieds’ industry norm.
The Employment Equity Act requires that these type of entities should submit an Employment Equity Report to the Department of Labour. Should you qualify as a Designated Employer you must comply with all the requirements of the Employment Equity Act. For Broad-Based Black Economic Empowerment (B-BBEE), we focus in the submission of the Employment Equity Report to the Department of Labour. This report must be submitted on an annual basis. Should you not comply with the Employment Equity Act requirements, you may be fined by the Department of Labour.
It can also happen that an entity will be obligated to submit this report in cases where his annual turnover exceeds the threshold determined by the Sector-Industrial Classification Table (below).
Sector Industrial Classification Table:
|SECTOR – INDUSTRIAL CLASSIFICATION||TURNOVER|
|MINING AND QUARRYING||R22,50M|
|ELECTRICITY, GAS AND WATER||R30,00M|
|RETAIL AND MOTOR TRADE AND REPAIR SERVICES||R45,00M|
|WHOLESALE TRADE, COMMERCIAL AGENTS & ALLIED SERVICES||R75,00M|
|CATERING ACCOMMODATION AND OTHER TRADE||R15,00M|
|TRANSPORT, STORAGE AND COMMUNICATIONS||R30,00M|
|FINANCE AND BUSINESS SERVICES||R30,00M|
|COMMUNITY, SOCIAL AND PERSONAL SERVICES||R15,00M|
If you qualify as a Designated Employer and you do not submit the Employment Equity report, you will not be able to claim points under Management & Control, and you will also not qualify as an Empowering Supplier.
Submission periods and procedures
The period in which the report can be submitted is from 1 September to 15 January. The submission entails 2 documents, namely the EEA2 and EEA4. The EEA2 indicate the total employees currently in service, total employees that resigned during the equity term and those that were appointed. These submissions are done electronically on the website of the Department of Labour. The submissions website is only open for the abovementioned time period after which it will close down and you will not be able to submit this report.
The EEA4 is a summary of the salaries for each race and gender according to their Occupational Levels.
Entities should get proper advice from their Skills Development Facilitators in order not to miss the due dates and to ensure that their reports are being submitted.
ABOUT THE AUTHOR
Dominique van Deventer obtained his LLB degree from the University of the Free State. He is currently a legal advisor at SEESA BEE at our Bloemfontein office and has been with SEESA for more than 2 years.