GAVIN STONE: Tough fines and state business bar await on amended employment act

Stinging penalties and a bar on doing business with the state are in store for companies that fail to meet the new requirements of the Employment Equity Act.

The plan must spell out how they will achieve equity targets measured against sectoral targets over a proposed five-year period. Employers will need to do gap analysis across the various management levels of their companies. Ideally, they should incorporate business forecasts that include a headcount in the workplace occupational levels. Employers need to plan what jobs will be available in five years and the racial mix in various positions. In so doing, they will create a clear road map for transformation. It is advisable to begin with a thorough employment equity audit.

Another thing to consider is whether your organisation has an efficient payroll system and database to meet the requirements of the act. A good payroll system and database supplies information on race, gender, occupational profile, engagements, terminations, promotions, training and salary. This information is essential when compiling the workplace profile and reporting on year-end employment equity statistics.

An insufficient target pool of individuals from designated groups with the relevant qualifications, skills and experience.The burden of evidence for all these justifiable grounds is high and will be audited. However, it does provide a rationale for issuing a section 53 certificate to an employer who does not meet the sector targets — provided justifiable reasons exist.

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