EMPLOYMENT EQUITY STRATEGY SCOPE OF WORK

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Augustus Phelps
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1 EMPLOYMENT EQUITY STRATEGY SCOPE OF WORK

2 Company Name: EE Assist 1000 (Pty) Ltd Street: 26 Sanethof, 750 Rubenstein Drive Suburb: Moreletapark Town: Pretoria East Province: Gauteng Postal Code: 0181 PROFESSIONALS IN EE VAT Number: Registration number: 2011/002100/07 Table of contents PURPOSE OF THE ACT...3 WHO NEEDS TO COMPLY...4 REQUIREMENTS...5 Section Section Section 16 & Section Section Section Section Section 22 (Listed entities only)...6 Section Section Section Section Section Section 43 and PENALTIES FOR...7 BENEFITS OF BECOMING EE COMPLIANT...8 1

3 BUSINESS STRATEGY FOR EMPLOYMENT EQUITY...9 Scope of Work to be performed annually...9 OUR FEES CONCLUSION

4 PURPOSE OF THE ACT Employment Equity Strategy The purpose of the Act is to achieve equity in the workplace by promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination. 3

5 WHO NEEDS TO COMPLY Employment Equity Strategy A Designated Employer means an Employer who employs 50 or more employees, or has a total annual as reflected in the following schedule: Sector or sub-sectors in accordance with the Standard Industrial Classification Agriculture Total annual R 6,00 m Mining and Quarrying R 22,50 m Manufacturing R 30,00 m Electricity, Gas and Water R 30,00 m Construction R 15,00 m Retail and Motor Trade and Repair Services R 45,00 m Wholesale Trade, Commercial Agents and Allied Services R 75,00 m Catering, Accommodation and Other Trade R 15,00 m Transport, Storage and Communications R 30,00 m Finance and Business Services R 30,00 m Community, Social and Personal Services R 15,00 m 4

6 REQUIREMENTS Employment Equity Strategy A Designated Employer Entity need to undertake to comply with all the provisions of the Act, and in particular (amongst others), Sections 13, 15, 16, 17, 18, 19, 20, 21, 24 and 27 of the Act. Section 13 Section 13 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must implement affirmative action measures for Designated Groups to achieve employment equity by consulting with employees, conduct an Economically Active Population (EAP) analysis and prepare and Employment Equity Succession Plan. Section 15 Section 15 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must implement affirmative action measures intended to ensure that suitably qualified employees from Designated Groups have equal opportunity and are equitably represented in all occupational categories and levels of the workforce. Section 16 & 17 Section 16 and 17 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must take reasonable steps to consult with representatives of employees representing the diverse interests of the workforce on conducting an analysis and preparation of this Employment Equity Succession Plan. Section 18 Section 18 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must disclose relevant information to the consulting parties (CEO, Employment Equity Manager, Employment Equity Forum and employees). Section 19 Section 19 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must conduct an analysis of employment policies, practices, procedures and working environment so as to identify employment barriers that adversely affect members from Designated Groups. The analysis must also include the development of a workforce profile to determine to what extend Designated Groups are under-represented in the workplace. 5

7 Section 20 Section 20 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must prepare and implement an Employment Equity Plan which will achieve reasonable progress towards employment equity in that Employer s workforce. Section 21 Section 21 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must submit its first report to the Director General (Department of Labour) within 12 months after the commencement of the Act (1999), and thereafter every year. Section 22 (Listed entities only) Section 22 of the Employment Equity Act nr 55 of 1998 stipulates that every Designated Employer that is a Public Company must publish a summary of a report required by Section 21 in that Employers annual financial report. Section 23 Section 23 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must, before the end of the term of its current Employment Equity Plan, prepare a subsequent Employment Equity Plan. Section 24 Section 24 of the Employment Equity Act nr 55 of 1998 stipulates that a Designated Employer must assign one or more Senior Manager(s) to ensure implementation and monitoring of the Employment Equity Plan and MUST make available necessary resources for this purpose. Section 25 Section 25 of the Employment Equity Act nr 55 of 1998 stipulates that an Employer must display at its workplace (where it can be read by employees) a notice in the prescribed form, informing them about the provisions of the Act. Section 26 An Employer must establish, and for the prescribed period, maintain records in respect of its workforce, its Employment Equity Plan and any other records relevant to its compliance with the Act. Section 27 Section 27 of the Employment Equity Act nr 55 of 1998 stipulates that every Designated Employer, when reporting, must submit a statement, as prescribed, to the Employment Conditions of Commission established by section 59 of the Basic Conditions of Employment Act, on the remuneration and benefits received in each occupational level of that Employer s workforce. Section 43 and 44 Review and outcome of the Director General s review. 6

8 PENALTIES FOR Employment Equity Strategy Current penalties for non-compliance with the Act as per the Amendment Bill are as follow: Contravention Section 16, 17, 19, 22, 24, 25, 26 and 43 Section 20, 21, 23 and 44 (b) No previous R Greater of R or 2% of TO One previous R Greater of R or 4% of TO Previous within 12 months or two previous R Greater of R or 6% of TO Three previous for same contravention R Greater of R or 8% of TO Four previous for same contravention R Greater of R or 10% of TO Refer to the Scope of Work for requirements of the Act. 7

9 BENEFITS OF BECOMING EE COMPLIANT The following are benefits of becoming EE Compliant: - Eliminate fines and penalties; - Could have a positive impact on your BEE score (as the BBBEE Codes of Good Practice refers to Employment Equity as one of the elements for Verification); - If dealt with correctly, Employment Equity compliance (including EE quarterly meetings) could create a sense of belonging to your EE Manager, Employment Equity Forum (EEF) and other employees; - If dealt with correctly, Employment Equity compliance (including EE quarterly meetings) could create a positive attitude amongst your EE Manager, Employment Equity Forum (EEF) and other employees by means of exchanging different perspectives; - Brainstorming amongst your EE Manager, Employment Equity Forum (EEF) and other employees could create opportunities for more effective and efficient transformation in the workplace; - Extensive training will be offered to the EE Manager and Employment Equity Forum (EEF), increasing their skills levels and - With a well thought out (and implemented) Employment Equity Succession Plan, Entities are able to promote and manage diversity within the entire workforce enabling them to create and service emerging markets. 8

10 BUSINESS STRATEGY FOR EMPLOYMENT EQUITY Scope of Work to be performed annually EE Assist 1000 (Pty) Ltd could establish the status of your Entities Employment Equity Compliance and provide the following services: DESCRIPTION DELIVERABLE 1 2 Consultation with CEO / MD / Directors / Members or Owner(s) of Designated Employer on requirements of the Employment Equity Act number 55 0f 1998 (hereinafter the Act) and the Amendment Bill gazette (16 January 2014). No cost involved (except travel). Audit procedure and checklist establishing the current status in compliance with the Act. Scope of Work Audit procedure checklist start of engagement 3 4 Coordinating of process to complete EEA1 forms by ALL employees (EE File / personnel files). Coordinating of process to formally establish the Employment Equity Forum (hereinafter EEF) as stipulated in Paragraph of the Codes of Good Practice: Preparation, implementation and monitoring of Employment Equity Plans (hereinafter the Codes). Once established, ensure annually that EEF complies EEA1 form Nomination letter Acceptance letter Rejection letter 9

11 DESCRIPTION DELIVERABLE with the Codes. EE Assist to draft the following: - Nomination letter in each occupational level; - Acceptance letter in each occupational level; - Rejection letter in each occupational level (where necessary). (Client to count results to verify EE Representative to be appointed). 5 Coordinating of process to formally appoint Employment Equity Senior Manager as required in Chapter 3 Section 24 of the Act. Once appointed, ensure annually that Employment Equity Senior Manager qualifies as prescribed by the Codes. Senior EE Manager appointment draft letter R to R Coordinating of process to formally appoint EEF Representatives as stipulated in Chapter 3 Section 16 of the Act. EE Assist to provide draft appointment letter. EE Representatives appointment draft letters R to R Employment Equity training provided to the Employment Equity Senior Manager and the EEF Representatives on the following: - Summary of the Act; - New Amendment Bill and its requirements; - Codes of Good Practice; - Required Policies and - Employment Equity Succession Plan (hereinafter EESP) requirements. Affirmative Action Policy (hereinafter AA Policy) and measures implemented as stipulated in Chapter 3 Training material: Presentation Summary of Act Amendment Bill Codes Responsibilities AA Policy 10

12 DESCRIPTION DELIVERABLE Section 15 of the Act. 9 Development and implementation of a Nondiscrimination Policy (hereinafter ND Policy) as stipulated in Chapter 2 Section 5 to 11 of the Act. ND Policy Greater of R 10 Development and implementation of an EESP as required in Chapter 3 Section 20 of the Act. EESP or 2% to 10% of annual 11 Development of a summarised EESP (to ensure better understanding by Semi-skilled and Unskilled employees). Summarised EESP EAP Analysis 12 Development of an Employment Equity Analysis (hereinafter EAP analysis) as required in Chapter 3 Section 19 of the Act. Stats SA targets CEE report Graphs - Under and Over R to R achievements List of barriers Greater of R 13 On-site consultation and development of EEA2 report (Workforce Profile). Organogram or 2% to 10% of annual 14 Successful on-line submission of EEA2 report to the Department of Labour as stipulated in Chapter 3 Section 21 by the Employment Equity Act number 55 of 1998 (hereinafter the Act). EEA2 report & Successful submission letter received Greater of R or 2% to 10% of annual 11

13 DESCRIPTION DELIVERABLE from DOL Greater of R 15 On-site consultation and development of EEA4 report (Income Differentials). Organogram or 2% to 10% of annual 16 Successful on-line submission of EEA4 report to the Department of Labour as stipulated in Chapter 3 Section 21 by the Act. EEA4 report & Successful submission letter received from DOL Greater of R or 2% to 10% of annual 17 Recommendations of goals and targets to CEO, Employment Equity Manager and EEF prior to submissions of EEA2 and EEA4 reports. EEA2 report Greater of R or 2% to 10% of annual Consult and attempt to reach agreement with the CEO, Employment Equity Manager and EEF Representatives as stipulated in Chapter 3 Section 16 and 17 of the Act on the following: 18 AA Policy; ND Policy; EESP; As per above R to R EAP Analysis; EEA2 report prior to submission to the DOL and EEA4 report prior to submission to the DOL. 19 Development and implementation of an Employment Equity Successive Plan as stipulated in Chapter 3 Section 23 by the Act. Needs to be developed six EE Successive Plan Greater of R or 2% to 10% of annual 12

14 DESCRIPTION DELIVERABLE months prior to expiry of EESP. 20 Provide all of the above by facilitating quarterly meetings (Travel time, all travel cost and accommodation included). Meeting minutes Various Various Verifying that records are kept in hardcopy. Audit 21 procedure to be performed every year as stipulated in Chapter 3 Section 26 by the Act. Designated Employer to ensure that all parties are Year end Audit Procedure Checklist R to R informed on publication thereof by means of EE File communication method as per EESP. 22 Summary of the Act to be displayed and duty to inform as stipulated in Chapter 3 Section 25 by the Act. Summary of the Act EE File R to R

15 ADDITIONAL USEFUL IMFORMATION PERTAINING TO EMPLOYMENT EQUITY The Director General (hereinafter DG) may: - Request your EESP; - Request your EAP Analysis; - Request any book, record, correspondence, document or information relevant to 23 compliance with the Act; - Request meeting with Designated Employer to discuss EESP and implementation thereof; R to R Request meeting with Employee, EEF, CEO, employees, Union or any other person who may have information relevant to review as stipulated in Chapter 3 Section 43(2) by the Act. The DG may make recommendation to Designated Employer stating: Greater of R 24 - Recommendations regarding EESP; - Period within which steps have to be taken; or 2% to 10% of annual - Any other prescribed formats as stipulated in Chapter 3 Section 44(b) by the Act. 14

16 OUR FEES Employment Equity Strategy Fees can be discussed at your premises (or telephonically depending your location). Fees will be discussed beforehand and can vary based on client needs. Additional fees could include: - Parking fees; - Toll fees; - Travel time costs (at R per hour) - Additional time spent at Entity / Client (at R per hour) and - Travel costs (fuel at R3.20 per kilometer from Pretoria East to Entity / Client premises) The above mentioned additional fees will be agreed upon beforehand. CONCLUSION Please contact EE Assist 1000 (Pty) Ltd for a formal Scope of Work and Service Level Agreement. Regards. Christiaan Pieter du Toit Internal Auditor Bcomm (Fin.Acc.) BComm (HONS) Internal Audit Member of the IIA SA Tel: Cell: Mail: cp@eeasist.co.za Website: 15

Employment Equity. Will Your Remuneration Practice be Fine or Fined? Winston Owen Owen, Adendorff & Associates (Pty) Ltd

Employment Equity. Will Your Remuneration Practice be Fine or Fined? Winston Owen Owen, Adendorff & Associates (Pty) Ltd Employment Equity Will Your Remuneration Practice be Fine or Fined? Winston Owen Owen, Adendorff & Associates (Pty) Ltd MANAGEMENT CONSULTANTS AND TRAINING PROVIDERS Motivations for Employment Equity 1.