Employers will be subjected to strict audit before the certificates are issued. without the certificate, a business entity cannot do business with neither the state nor any of its organs.
Following the amendment of Section 53 of the Employment Equity Act by the Department of Employment and Labour, companies will have to comply with a list of stringent conditions to qualify for the employment equity (EE) compliance certificate. The compliance certificates are applicable for a year from the date of issue. Noteworthy, without the certificate a business entity cannot do business with neither the state nor any of its organs.
In terms of the proposed Employment Equity amendments, the following are critical aspects for employers to be aware of:
- Non-designated employers (Companies employing less than 49 employees)
Non-designated employers [companies employing less than 49 employees] have to comply with the national minimum wage or prove that they have been granted exemption and have no CCMA unfair discrimination award against them.
2. Designated employers (entities employing 50 or more employees)
The criteria for designated employers – entities employing 50 or more employees – will have to submit annual Employment Equity Reports; comply with the national minimum wage or prove that they have been granted exemption not to pay the national minimum wage; comply with their own annual employment equity targets towards the five-year sector employment equity targets.
3. CCMA unfair discrimination award
These employers should also not have CCMA unfair discrimination award against them given in the previous 12 months.
4. Compliance certificate exemptions
The employment equity compliance certificate exemptions will be granted only when there are justifiable reasons, such as: insufficient recruitment opportunities; insufficient target individuals from the designated groups with the relevant qualifications, skills and experience; and insufficient promotion opportunities.
The other reasons will include transfer of business; merger/acquisitions; impact on business economic circumstances for example the impact of Covid-19 pandemic on business.
Employers will be subjected to strict audit before the certificates are issued.