Jul 26, 2021

Employment Equity Deregistration And The Coming Amendment Bill

The Department of Employment and Labour recently published the Commission for Employment Equity’s Annual report and the 2020 EE Public Register of all Designated Employers that reported in 2020.

At a glance, over 26 635 Employment Equity reports were submitted in South Africa in 2020.

Employers who have submitted Employment Equity reports for their companies in the past where either the employee count is now below 50 or their company’s turnover are below the industry turnover threshold are now eligible for deregistration from the Employment Equity Public Register.

It should be well noted that the application for deregistration must reach the Department of Employment and Labour for consideration by no later than 31 August 2021.

The following documents are needed to finalise the application to the Department of Employment and Labour:

• A completed Deregistration form referred to as the EEA14 signed by the Chief Executive Officer or Accounting Officer;
• The latest Audited Financial Statements from your Auditor;
• A confirmation letter stating your employee count, turnover amount and confirmation of your sector signed by the Chief Executive Officer or Accounting Officer.

Once deregistered, these companies will be removed from the EE Public Register of Designated Employers and will be deemed Non-Designated.

As with all deadlines from the Department of Employment and Labour, no late applications for deregistration will be accepted.

Impact of deregistration:

Companies deregistered from the EE Public Register have reported a loss of communication and input from the consulting platform.

Some companies have also indicated a decreased knowledge of the working environment along with informed decision making.

Loss of competitive edge due to not revising Policies and procedures.

Coming Amendments:

The long-awaited Employment Equity Amendment Bill is almost with us.

Once put in motion by the signature of the President, Sector-specific targets will be set by the Minister of Labour and will need to be aligned by the Numerical Targets of all Designated Employers Employment Equity Plans.

Concluding deregistration applications should only be made when the companies employee count is under 50 and their turnover is below the Sector threshold.

These applications are reviewed, and this may sometimes be a timeous process; thus, submitting it before the deadline is the key to the success thereof.

Regardless if you are a Designated or Non-Designated Employer, discrimination in the workplace is remains prohibited. SEESA offers a comprehensive introductory Training Course for Employment Equity and assists clients with the needed insight and tools needed to ensure compliance.

Designated Employers need not worry about the deregistration process and the new Employment Equity amendments as SEESA has been the field experts, and we are here to assist and help ask your Skilled SDF today!

About The Author:

Jean-Pierre De La Guerre is a SEESA Skills Development Facilitator in Bloemfontein, and he graduated from the University of North West PUKKE with his BA Law Degree.

References:

Employment Equity Amended Act.