News / Legal Brief
May 25,2017
There has been a recent increase in the number of employment equity audits conducted by the Department of Labour on designated employers.
The reason for this increased drive towards enforcement of a designated employer’s obligations in terms of the Employment Equity Act No.55 of 1998 (“EEA”), may be related to the recent amendments to the EEA, effected in 2014. The amended EEA makes provision for the Department of Labour to immediately approach the Labour Court for the imposition of a fine on a designated for non‑compliance with its obligation to‑
The Department of Labour is entitled to approach the Labour Court for the imposition of a fine without giving the designated employer an opportunity to remedy its non-compliance even in the first instance of non-compliance.
The fines which the Department of Labour may request are substantial and may have devastating financial implications on a company if applied cumulatively. Alongside is a table listing the fines which may be imposed for the various non compliances.
Previous Contravention | Contravention of any Provision of sections 16 (read with 17), 19, 22, 24, 25, 26 and 43(2) | Contravention of any Provision of sections 20, 21, 23 and 44(b) |
No previous contravention | R1 500 000 | The greater of R1 500 000 or 2% of the employer’s turnover |
A previous contravention in respect of the same provision | R1 800 000 | The greater of R1 800 000 or 4% of the employer’s turnover |
A previous contravention within the previous 12 months or two previous contraventions in respect of the same provision within three years | R2 100 000 | The greater of R2 100 000 or 6% of the employer’s turnover |
Three previous contraventions in respect of the same provision within three years | R2 400 000 | The greater of R2 400 000 or 8% of the employer’s turnover |
Four previous contraventions in respect of the same provision within three years | R2 700 000 | The greater of R2 700 000 or 10% of the employer’s turnover |
It is an employer who ‑
A designated employer may avoid being fined by the Department of Labour by –
We are able to assist with ‑
NEWS / Legal Brief
To interdict or not to interdict: Parties continue to fall in the same pitfallsNEWS / Legal Brief
When is Disclosure Voluntary for VDP Relief?NEWS / Legal Brief
The Rise in Responsible and ESG Investment