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Johan van Deventer – Employment equity compliance solutions

Updated: Jan 24, 2022

What is Employment Equity and how we at LabourNet can assist you!

With the constant evolving economy and fast-paced world we live in, LabourNet as an entity has also evolved and transformed to accommodate for clients’ modern-day needs. There is hardly an employment compliance solution that we cannot provide. Need payroll? We have consultants, support, and software – so just LabourNet it. Can’t manage internal disciplinary or performance issues? Just LabourNet it! Health and safety compliance keeping you up at night? Just LabourNet it!

Employees need upskilling? Just LabourNet it! Need to improve your B-BBEE rating? Just LabourNet it! Department of Labour and Labour inspectors breathing down your neck regarding employment equity compliance? Just LabourNet it!

If you’re pondering about what exactly is employment equity compliance and who should comply, we need to look at the term designated employer. All designated employers need to comply with employment equity. You can identify yourself as a designated employer if you are:

· Someone that employs 50 or more employees

· Your annual turnover threshold is equal to or above the threshold as stipulated in Schedule 4 of the Employment Equity Act

· An organ of state

· A municipality or an employer that is bound by a collective agreement

Designated employers have the responsibility to appoint a section 24 manager, address unfair discrimination in the workplace, implement affirmative action measures, consult with employees, conduct an analysis, prepare, and implement an employment equity plan as well as report to the Department of Labour on an annual basis.

Why choose us?

Our consultants pride themselves in developing a professional bond with each client as each client is unique with different needs. Whether it is establishing an employment equity committee, facilitating quarterly committee meetings, or assisting a client with a Department of Labour Director-General Review, we have it all planned out as per your project plan.

We follow all protocols and guide employers to the best of our ability to be compliant with legislation. We also recognise that no one is above the law and ensure that at LabourNet we conduct all activities strictly as per current legislative requirements and good practice.

What happens if you do not comply?

Your company name will be removed off the Employment Equity Public register, penalised for obstruction, undue influence and/or fraud and lastly, but definitely not the least, issued a minimum fine of R1,5 million (or 2% of your annual turnover, whichever is the greatest) by the Director-General. Noncompliance to equity can also result in losing out on business prospects with other companies and non-eligibility for tender opportunities.

Who must submit reports to the Department of Labour?

For employers that have become recently designated on or after the first working day of April but before the first working day of October, reports must be submitted on the first working day of October in the following year. Employers that also wish to voluntarily comply in terms of S14 of the Employment Equity Act may submit their employment equity reports. Employment equity reports can be submitted manually to the Department of Labour or electronically, however due to Covid-19 regulations we have opted and committed to submitting these reports electronically for each client before the 15th of January 2022.

LabourNet is your answer to all your daily compliance needs in an employee’s life cycle in any organisation. Why? Employment Equity legislation and other employment compliance legislation can be wide-ranging and intimidating to the ordinary person, but here at LabourNet we have the best, high-performing, and professionally trained consultants, each one allocated to a specific client to service and provide the best cost-effective solutions. For more information on employment equity or any other employment legislation compliance solution, please do not hesitate to contact us.

LabourNet – providing simple, effective and affordable solutions for employment legislative compliance.

T: +27(0)31 266 6570

C: +27(0)82 786 7480


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