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EMPLOYMENT EQUITY ACT AMENDMENTS :
WHAT THEY MEAN FOR EMPLOYERS
The Department of Employment and Labour has proposed amendments to the Employment Equity Act , which seeks to give the Minister of Labour , Thulas Nxesi , the authority to set employment equity targets for employers across the economy , among other notable changes .
Advocate Tertius Wessels from Strata-G Labour Solutions breaks down the five most notable changes in the amendment bill and should they pass in their current form , what it means to employers .
REDEFINING DESIGNATED EMPLOYERS Employers who employ fewer than 50 employees , regardless of their turnover , will no longer fall within the definition of the designated employer . Currently , one is a designated employer , depending on the number of employees they have or what their annual turnover is .
This means that many employers , especially Small to Micro and Medium Enterprises ( SMMEs ), will not be required to comply with certain provisions of the Act that specifically deal with affirmative action measures . What will still be required , however , is employment equity reporting , and making voluntarily affirmative action obsolete .
SECTOR-SPECIFIC NUMERICAL TARGETS The amendment bill also seeks to introduce certain sectorspecific , numerical targets , so if the Employment Equity Amendment Bill in its current form comes into play , it will give the Minister the power to identify national economic targets and determine numerical goals for specific industries or sectors . It will require the Minister to consult with the Employment Equity Commission on what those proposed sector targets should be and publish them for commentary .
The aim behind the introduction of sectoral targets will force employers in specific sectors to look at affirmative action because as a designated employer that wishes to engage in government tenders , you will only be considered if your organisation meets the sectoral objectives set by the Minister . The amendment bill requires that a certificate gets issued to employers confirming their compliance with the Employment Equity Act .
REDEFINING PEOPLE WITH DISABILITIES The classification of people with disabilities will also be amended to align it to the definition of the United Nations . The new definition will include people who have long term or recurring , physical , mental , intellectual , or sensory impairments , which in the interaction with various barriers , may substantially limit their prospects of entry into advancement employment .
Currently , under the Employment Equity Act , a disability must be permanent , but with the newly proposed amendments , any recurring condition that limits a person ' s movements , senses , or activities in executing their tasks will now also be considered .
PSYCHOLOGICAL TESTING Currently , professions that use psychological testing must have that test certified by the Health Practitioners Council of South Africa ( HPCSA ). The new amendments propose doing away with requiring psychological testing or similar assessment of employees to be certified by the HPCSA .
Psychological testing comes into play for pre-employment checks and screening , ensuring employers have an objective tool for pairing up a prospective employee with the relevant duties that come with their role .
TRADE UNIONS AND CONSULTATIONS PROPOSAL Under the current Act , designated employers must consult with employees concerning the implementation of Employment Equity Plans or Employment Equity Reporting . But the amendments proposed in the bill state that designated employers must now consult with trade unions and not employees .
This becomes an issue for unorganised employees who may be left out of Employment Equity Committees and this exclusion can constitute discrimination .
“ It is worth noting that some of these amendments may not make it into the final bill in their current form . But the proposed changes are aimed at moving away from the tick box approach to ensure previously marginalised groups are included in the employment paradigm . The whole issue about the targets will be a matter for litigation going forward , especially as most industries are still reeling from the pandemic and meeting pre- Covid-19 Employment Equity goals might prove challenging for most organisations . The amendments cannot be a onesize-fits-all either , they need to factor in the various socioeconomic landscapes each industry operates under , and applied effectively ,” concludes Wessels . RACA
www . hvacronline . co . za RACA Journal I July 2021 7