Preparing an Employment
PREPARING AN EMPLOYMENT
EQUITY PLAN
A USER’S GUIDE
DEPARMENT OF LABOUR
Contents
Introduction
Section 1: Context
1.1 Why the Employment Equity Act?
1.2 Did you know that …
1.3 Why should employers implement employment equity?
1.4 Who is affected by Chapter 3?
1.5 What if employee numbers vary from time to time and only occasionally reach the 50 mark?
1.6 What are the duties of employers?
Section 2: Ten steps to preparing and implementing
an Employment equity plan
Phase 1 Preparation
2.1 Step 1: Assigning responsibility to one or more senior manager/s
2.2 Step 2: Communication, awareness and training
2.3 Step 3: Consultation
2.4 Step 4: Conducting an analysis
Phase 2 Implementation
2.5 Step 5: Setting objectives and formulating measures
2.6 Step 6: Establishing a time frame
2.7 Step 7: Allocate resources
2.8 Step 8: Communicate the plan
Phase 3 Monitoring
2.9 Step 9: Monitoring and evaluating the plan
2.10 Step 10: Reporting to the Department of Labour
Section 3: Reporting to the Department of Labour
3.1 Which forms to use?
3.2 When to report?
3.3 Where to submit reports?
3.4 Others uses for the report form
3.5 Frequently asked questions
Section 4 Where to find us
4.1 Provincial Offices of the Department of Labour
4.2 Employment Equity Registry
4.3 Video: Getting employment equity working for you
4.4 We would like to hear from you
Section 5 Code of Good Practice
The preparation, implementing and monitoring of
Employment equity plans
1 Objective
2 Legal framework
3 Scope
4 Purpose and rationale for the plan
5 Structure of the plan
6 Process for constructing a plan
7 Planning phase
8 Developing the plan
9 Monitoring and evaluating the plan
Section 6 Regulations
6.1 General Administrative Regulations
1 Definitions
2 Collecting information and conducting an analysis
(Section 19 of the Act)
3 Duty to prepare and implement an employment equity plan
(Section 20 of the Act)
4 Duty to report
(Section 21 of the Act)
5 Duty to inform
(Section 25 of the Act)
6 Income Differentials
(Section 27 of the Act)
7 Proof of submission
8 Enforcement
(Chapter 5 of the Act)
6.2 Forms and annexures t the regulations
EEA1 Employee Declaration
EEA2 Report Form
EEA4 Income Differential Statement
EEA8 Demographic Information
EEA9 Occupational Levels
EEA10 Occupational Categories
Introduction
This user’s guide is issued by the Department of Labour to assist employers and employees to better understand the Employment Equity Act and to meet their obligations under the Act, particularly with regard to Chapter 3.
Chapter 3 of the Act, which details a series of steps that employers must take to achieve employment equity, will be effective from 1 December 1999. This means that larger companies have to report for the first time by 1 June 2000 and others by 1 December 2000.
The guide takes users through how to prepare an employment equity plan, how to report to the Department of Labour, and also includes all the required forms and documents that employers and employees will need to comply with the Act.
The following table provides an easy reference to the content of the guide.
The different sections of the guide will refer to the regulations including standard forms, copies of which are in section 6.
Section 1 Section 2 Section 3 Section 4 Section 5 Section 6
· Context The 10 steps to Reporting Directory Code of Regulations
Developing an - Who - Provincial Good Practice
- When Offices Forms
· Chapter 3 - How - Employment -EEA1
Requirements Equity - EEA2
Registry - EEA4
Where to - Website - EEA8
· Who is affected submit your - EEA9
report - EEA10
o Answers to some
of your questions
Section 1: Context
1.1 Why the Employment Equity Act?
South Africa has a legacy of discrimination in relation to race, gender and disability that has denied access to opportunities for education, employment, promotion and wealth creation to the majority of South Africans.
The Employment Equity Act was passed t address this legacy and has two main objectives:
Ø To ensure that our workplaces are free of discrimination, and
Ø To ensure that employers take active steps to promote employment equity.
1.2 Did you know that …
The Breakwater Monitor Report of July 1999 indicates that in Management
Ø White men and women hold 84% of management positions in South Africa
Ø Men all races hold 83% of management positions.
With regard to Promotions
Ø White employees still constitute about 74% of management promotions and 54% of skilled promotions.
In terms of Recruitment
Ø General recruitment figures show that black men are most targeted, BUT
Ø Managerial and skilled recruitment figures show that white men are still favoured. For example, managerial recruitment figures show that the recruitment rate for white men is 46% followed by white women at 19% and black men at 18%.
1.3 Why should employers implement employment equity?
Not only is there a legal requirement, but good human resource management is increasingly being regarded as the differentiating factor between businesses.
It follows that to invest in and develop all our people will contribute to business sustainability and future returns.
Having a workforce that reflects the demographics of the country can improve market share, better understanding of markets, and thus the ability to service all current or prospective clients.
1.4 Who is affected by Chapter 3?
All designated employees and their employees, particularly those employees from designated groups.
Who are designated employers?
Designated employers include:
Ø Employers who employ 50 or more employees
Ø Employers who employ fewer than 50 employees but whose total annual turnover equals or exceed the applicable turnover of a small business in terms of schedule 4 of the Act
Ø An employer appointed by a collective agreement
Ø Municipalities
Ø Organs of the state except for
· The National Defence Force
· The National Intelligence Agency
· The South African Secret Service
Who are designated groups?
Designated groups are
Ø Black people, which means
· Africans
· Coloureds
· Indians
Ø Women
Ø People with disabilities
1.5 What if employee numbers vary from time to time and only occasionally reach the 50 mark?
Employers who have 50 or more employees at the date on which reports are due, will be required to comply with the reporting requirements of larger employers.
Similarly employers who have 150 or more employees at the date on which reports are due, will be required to comply with the reporting requirements of larger employers.
Should employers avoid reporting requirements by manipulating employee numbers around these dates, they may be subject to a Director-General’s review.
1.6 What are the duties of employers?
Chapter 3 requires that employers take certain affirmative action measures to
Achieve employment equity.
These measures are:
Ø Employers must consult with unions and employees in order to make sue that the plan is accepted by everybody
Ø Employers must analyse all employment policies, practices and procedures, and prepare a profile of their workforce in order to identify any problems relating to employment equity
Ø Employers must prepare and implement an employment equity plan setting out the affirmative action measures they intend taking to achieve employment equity goals
Ø Employers must report to the Department of Labour on the implementation of their plan in order for the Department to monitor their compliance
Ø Employers must also display a summary of the provisions of the Act in all languages relevant to their workforce. These summaries will be made available by the Government Printer in due course.
Section 2: Ten steps to preparing and implementing employment equity plan
Drawn from the Code of Good Practice:
Preparation, implementation and monitoring of employment equity plans
Phase 1: Preparation
Step 1: Assign responsibility
Step 2: Communication, awareness and training
Step 3: Consultation
Step 4: Analysis
Phase 2: Implementation
Step 5: Corrective measures and objectives
Step 6: Time frames established
Step 7: Allocation of resources
Step 8: Plan communication
Phase 3: Monitoring
Step 9: Monitor, evaluate and review
Step 10: Report
Some steps may overlap while others, such as communications and consultation
continue throughout the process.
Phase 1: Preparation
The preparation phase contains the relevant steps that an employer needs to take in order to produce an employment equity plan.
2.1 Step1: Assigning responsibility to one or more senior manager/s
The first step in the process is to assign responsibility for the development,
Implementation and monitoring of the plan to one or more senior manager/s.
These managers should
Ø Be permanent employees
Ø Report directly to the CEO
Ø Have key employment equity outcomes incorporated into their performance contracts (In fact, all managers should have key employment equity outcomes incorporated into their performance contracts).
And need
Ø The necessary authority or mandate
Ø An appropriate budget
Ø Time off from other duties and commitments
Ø Access to other required resources.
The assignment of responsibility does not relieve the employer of any responsibility imposed by the Act.
The assigned managers could be employed to manage employment equity only or could be managers who have been assigned this role as part of their other responsibilities.
2.2 Step 2: Communication, awareness and training
This step should focus on positive outcomes such as
Ø Better utilization of human resources
Ø A more diverse and productive workforce
Ø A workforce that reflects the relevant labour market.
What should employees know?
All employees should
Ø Be made aware and informed of the content and application of the Act
Ø Be sensitized with regard to employment equity and anti-discrimination issues
Ø Be informed regarding the process to be followed
Ø Understand the importance of their participation in the process
Ø Be made aware of the need for participation of all stakeholders
Through a variety of methods which could include one or more of the following
Ø Pamphlets
Ø Newsletter
Ø Workshops
Ø Videos
Ø Training sessions
What about managers?
Managers should
Ø Be informed of their obligations in terms of the Act
Ø Be offered training in diversity management and related skills
Ø Understand that discrimination can be direct, indirect, or as a result of inaction or victimization.
2.3 Step3: Consultation
Consultation should start as early as possible in the process.
How should this happen?
A consultative forum should be established or an existing forum used if this is
Appropriate, for example an existing diversity committee, affirmative action or
Employment Equity Forum.
Who should be included?
All stakeholders such as:
Ø Representative trade unions
Employee representatives from
Ø Designated groups
Ø Non – designated groups
Ø All occupational categories and levels.
Senior management, including the managers assigned with responsibility.
What is proper consultation?
Proper consultation includes
Ø The opportunity to meet and report back to employees and management
Ø Reasonable opportunity for employee representatives to meet with the employer
Ø The request, receipt and consideration of relevant information
Ø Adequate time allowed for each of the above steps.
Ongoing interaction with and accessibility to senior management with regard to
Employment equity issues are critical to the success of this process.
What would be considered relevant information?
Relevant information could include that relating to
Ø The particular business environment and circumstances of the employer
Ø The relevant economic sector or industry
Ø Relevant local, regional, and national demographic information about the economically active population
Ø The anticipated growth or reduction of the employers workforce
Ø The internal and external availability for appointment or promotion of suitably qualified people form the designated groups
Ø The degree of representation of designated employees in each occupational category and level in the employers workforce
Ø Employment policies and practices of the employer.
Relevant information is not limited to information supplied by the employer.
Employees may be in a position to provide employers with valuable information that
Could be considered in developing an employment equity plan.
How often should the consultative forum meet?
This will vary from employer to employer depending on size, sophistication, existing
Levels of diversity, and what has already been accomplished in the workplace with regard to employment equity. Meetings should, however, take place regularly and employers should allow time off for these meetings.
2.4 Step 4: Conducting an analysis
Why an analysis?
For two reasons.
Firstly, to assess all employment policies, practices, procedures, and the working environment in order to identify barriers that may
Ø Contribute to the under-utilisation of employees from the designated groups
Ø Contribute to the lack of affirmation of diversity in the workplace
Ø Adversely affect designated groups
And also
Ø To identify practices or factors that positively promotes employment equity and diversity in the workplace.
Secondly, to determine the extent of under-representation of employees from the designated groups in the different occupational categories and levels of the employers workforce.
a) Review of policies, practices and working conditions
What should be reviewed?
Ø All employment practices such as recruitment, selection, pre-employment
testing, and induction
Ø Practices related to succession and experience planning, and related promotions and transfers
Ø Utilisation and job assignments
Ø Current training and development methodologies and strategies, and access to training
Ø Remuneration structures and practices
Ø Employee benefits arrangements
Ø Disciplinary
Ø Working conditions
Ø The number and nature of dismissals, voluntary terminations and retrenchments
Ø Corporate culture
Ø Practices relating to the management of HIV/AIDS in the workplace which could be discriminatory
Ø Any other practices or conditions that are tabled by the consultative forum.
What to look for?
Ø Factors that adversely affect employees from designated groups
Ø Subtle or indirect form of discrimination and stereotyping.