The Employment Equity Act (hereinafter referred to as the EEA) stipulates that the annual submission of an Employment Equity report is compulsory for any company with over 50 employees or where the company has less than 50 employees, but the annual turnover equals or exceeds the industry thresholds as published in Government Gazette No. 37238 (16 January 2014).
The Management and Control element forms part of all BEE sector codes. This element allows companies to claim points without additional expenditure, based only on the representation of ‘black’ people (as per the definition in the BEE Act) in management positions. To claim points under the Management and Control element, the company must submit proof of compliance with the annual Employment Equity submission (EEA2 and EEA4) and approval of the report by the Department of Labour. Without the aforementioned, the company cannot claim points under the Management and Control element, which means that the company will lose available points, which might have contributed to obtaining a compliant BEE level.
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