On the 17th of May 2022, a new employment equity bill has been proposed. This will amend the employment equity act. that was originally passed in 1998.
The Amendments:
For the first time ever, B-BBEE will enforce regulations through fines and penalties. Employment Equity will be scored against sectorial targets, instead of the universal targets. Non-Compliance with these targets will result in hefty fines.
Designated Employers definition will be simplified. Designated Employers where measured by a company having more than 50 employees, or a company with less than 50 employees, but meet the industry turnover thresholds. Designated Employers will know be only companies that employ more than 50 people. Companies with less than 50 people will be fully exempt from complying with the Employment Equity Act (EEA).
Changes to priority targets. Generic companies three priority elements are Ownership, Skills Development and Enterprise Development. Qualifying Small Enterprises priority elements are Ownership and then either Skills Development or Enterprise Development. If one views EE and B-BBEE together, EE becomes a Priority Element with a major impact for non-compliance and transformation. Risk assessment will need to be reworked in the light of these changes for all companies.
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