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Focus on Employment Equity Plan

Changes to the Employment Equity Act and the new set of demands on businesses they bring were the topic at a Border-Kei Chamber of Business presentation late last week.

Nomfundo Douw-Jack: EEA has profitable opportunities as well as pitfalls if not handled correctly.
Nomfundo Douw-Jack: EEA has profitable opportunities as well as pitfalls if not handled correctly. (SUPPLIED)

Changes to the Employment Equity Act and the new set of demands on businesses they bring were the topic at a Border-Kei Chamber of Business presentation late last week.

And Nomfundo Douw-Jack, co-director of Luphawu Empowerment Solutions, had an attentive audience for her comprehensive analysis of the changes.

She zoomed in on the five-year Employment Equity Plan (EEP) employers need to submit by September 1.

There are various options on submitting plans and companies are advised to study them.

Where affirmative action plans were not followed, several concessions are possible including a disruption like a pandemic lockdown, should it occur again.

Reasons for noncompliance must be accompanied by a detailed file verified by the company’s employment equity committee.

Fines for non-compliance have been hiked, with the new minimum R1.5m.

The designated official that has to sign off reports is the CEO in private companies and the accounting officer in the government sector.

The consequences of not having a compliance certificate are crippling for companies that rely on government trade, because without it they may not do business with a state entity.

The EEA aims to create a fair and inclusive workplace by addressing unfairness and promoting equal opportunities, but achieving these goals may require businesses to overcome significant barriers.

It is crucial for employers to understand and implement effective compliance steps.

Common equity barriers include:

*lack of diversity, particularly in senior roles;

*lack of skills development and  training opportunities;

*recruitment policies that favour certain groups;

*resistance to change and diversification;

*limited access to opportunities for promotion, education and networking; and

sexual harassment.

We need to embrace this model of employment equity because it falls in line with transformation

The answers to some of the challenges include:  Targeted recruitment, making skills programmes available to employees, and publishing sexual harassment policies coupled with management commitment to addressing sexual harassment.

Regular assessment of the Employment Equity Plan is essential.

A requirement to submit reports every two years could increase admin burdens, possibly even requiring employment of someone competent to handle the task.

Douw-Jack, who shares leadership at Luphawu Empowerment Solutions with Zoleka Ntshoza, says the firm enables its clients to stay aligned with the latest developments in the employment and labour landscapes.

“We offer assistance in setting and reaching an organisation’s targets and objectives, driving sustainable success with our strategic guidance and support,” she said.

“We have a collaborative approach but our clients' input is essential as we work closely with them throughout the process, building customized solutions that are crafted in partnership with our clients’ team for optimal results.”

“We need to embrace this model of employment equity because it falls in line with transformation.”

Douw-Jack left the audience, made up mainly of HR specialists, with the advice that the role of the EE board members was vital to the success of any company.

Daily Dispatch


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