Why it’s vital to have an effective human resources solution for producing Employee Equity reports

Producing correct Employee Equity reports should be a key focus area of HR resources solutions in South Africa. Failure to comply with the Employment Equity Act could result in fines from R500 000 and higher and should therefore be avoided at all cost.

But what exactly is ‘Employment Equity’ and how do I accurately fill in these required reports?

Well, simply put, it is an Act that was introduced to help ensure that equity in the South African workforce is achieved. It was designed to redress the effects of past legislation on certain groups in our economy and therefore focuses on: ensuring equal opportunities and fair treatment in the workplace by eliminating discrimination of any kind and the correct implementation of affirmative action policies.

To comply with these legal requirements, the South African Department of Labour requires of businesses with more than 50 employees to complete the Employment Equity Report Form (EEA2) and Income Differential Statement Form (EEA4). Depending on the size of your firm (and in some cases, your annual turnover), these reports have to be submitted either once every year or, if you employ less than 150 people, once every two years. However, because random inspections are conducted, it is strongly advised to always have your documents in order.

The safest thing to do would be to implement an all-encompassing human resources solution like the one provided by CRS HR & Payroll Solutions that will assist the person in charge to properly manage your compliance.

Contact us for further information on HR resources solutions in South Africa and how we can help you produce employment Equity reports.