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JULY 2020 – SOUTH AFRICA

EMPLOYMENT EQUITY AMENDMENT BILL 2020

It is important that employers note the following:

Employment Equity Amendment Bill 2020 approved by Cabinet

The Department of Employment and Labour has published a notice indicating that it plans to introduce the Employment Equity (EE) Amendment Bill to the National Assembly

Government Notice No. R. 798 was published in Government Gazette 43535 on 20 July 2020.

The Bill seeks to strengthen the Employment Equity Act 55 of 1998 and support efforts to eliminate the legacies of apartheid discrimination and inequality in the workplace.

To summarise:

  • The Bill aims to bring in mandatory training of employees.
  • An employment equity compliance certificate will be required to access state contracts.
  • The Bill will enable the Labour Minister to set numerical targets for any national economic sector.
  • Employers with fewer than 50 employees will no longer have to report on their employment equity targets, irrespective of their turnover.
  • The Bill re-emphasises how important it is for companies to actively transform their workplace thorough:
    • Implementing a dedicated and active EE committee;
    • Developing an EE plan and commitment to transformation; and
    • Ensuring compliance to all EE regulations.
  • The Bill revises learnership allowances and mandatory grants.

A lack of transformation in the workplace could result in a company being deemed non-compliant. This could present serious business risks or implications in the form of fines, penalties and non-access to work.

Contact our legislation team at info@crs.co.za if you require any additional information.
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