Drafting of employment equity plans
- Written by Gary Watkins
- Published in Consulting Services
Drafting of employment equity plans
We approach Employment Equity primarily from a workforce readiness approach taking into account the urgent need to bring about transformation through the implementation of progressive affirmative action measures, motivated less by the “threat” of penalties or written undertakings than the requirement to develop the skills and competencies necessary for the organisation to fulfill its strategic mandate.
In the development of the current plan we will take cognizance of, amongst others, the following:
- The General Administrative Regulations;
- Labour Court rulings on various aspects pertaining to the implementation and enforcement of employment equity plans and affirmative action measures pertaining to Employment Equity;
- Legislative enactments and Codes of Good Practice;
- External resources informing employment equity plans and the setting of numerical targets (National and Regional EAP profiles, HSRC statistics, The Economist Human Capital Index, Report of the Ministerial Committee on Transformation and Social Cohesion and the Elimination of Discrimination in Public Higher Education Institutions);
- Numerical targets and affirmative action measures;
Project Steps and Time Frames
- Review of organizational requirements, status of employment equity within organisation
- Agree a timetable for submitting draft plan and recommendations for approval and sign off.
- Submit final plan, policies and procedures (as per agreed schedule) for sign off and/or modification.
Broad Framework of Employment Equity Plan
Our services incorporate the development of the following material:-
- Audit of existing policies and status of any current Plans / EEA Reports
- Development of outline for EE Plan as well as recommendations
- Development of action plan based on agreed recommendations
- Recommendations / review of Human Resource Policies supporting EE Plan and strategy (as per DOL EE Audit)
- Employment Equity Manual for use by consultative forum
- Template for Training and Development Manual
- Methodology for review / monitoring of employment equity plan (key indicators)
- Methodology for amendment of employment equity plan (as per project management principles permitting amendment of plan during life cycle) and identification of risk factors which could impact on achievement of employment equity numerical targets.
Formulation of an Employment Equity Plan
1. Systems Review
Review of internal systems review conducted by organisation
2. Workforce Profile
Comparison of current workforce profile vis a vis Economically Active Population and other appropriate sources, e.g., Sector workforce profiles, HSRC data, Broad Based Black Economic Empowerment Sector Charters and Scorecards etc.
Analysis of Form EEA1 profiles (race, sex and disability)
3. Numerical Targets
Review of internal numerical targets against Economically Active Population statistics and other applicable / relevant / available data.
4. Affirmative Action Measures
Review of measures appropriate to the organisation to overcome actual or potential discrimination and to achieve numerical targets. Such measures may include:
- Fast tracking and succession planning
- Learnership and apprenticeship schemes
5. Analysis of Remuneration Differentials
- Review of salary scales by job grade (or job title), determination of pay bands.
- Analysis of remuneration differentials by race and gender.
6. Additional Labour Court considerations in determining compliance with Employment Equity
In Director-General, Department of Labour v Win-Cool Enterprise (Pty) Ltd Labour Court D731/05 16 April 2007 Pillay D, J identified various factors the Court would consider in determining compliance with the provisions of the Employment Equity Act.
As far as the amount of the fine for non-compliance was concerned, the court stated that the purposes of the penalty were deterrence and prevention: the amount of the penalty has to be sufficiently high that it makes commercial sense for employers to comply than to risk a penalty. Factors to consider were:
- the purpose of the EEA;
- the extent of the contravention;
- the period the contravention has endured;
- the reason for not complying;
- the maximum fine prescribed;
- any relevant considerations relating to the respondent.
- the willingness and intention of the employer to comply, its attitude and conduct;
- any loss or damage suffered by the workforce or the DOL as a result of the contravention;
- any profit derived from the contravention;
- the extent to which the employer complies with all other laws and agreements that regulate employment;
- the investment of time, money and other resources that the employer makes in the development of the workforce;
- the effect of the penalty on employment;
- the nature and size of the employer;
- the industry in which the employer operates;
- the area in which the employer is located; and
- the deterrent effect of the penalty.
All the criteria have to be considered cumulatively.
The criteria specified above will be included in the Employment Equity Plan to ensure that should the organisation object to a Compliance Order it is well placed to demonstrate its compliance with the provisions of the Act as well as the additional factors specified by the Labour Court in its own determination of compliance.
7. Department of Labour compliance audits
Ensuring Plan complies with DOL compliance audit
8. Communication and Training on Employment Equity
Formulation of a training schedule for communication of contents of Employment Equity Act, Diversity and HIV/AIDS.
Whilst not required by the Act we will also include suggestions for addressing the following workplace concerns:
- Workplace Harassment
- Incorporation of employment equity targets in managerial supervisory plans
9. Consultative Forum or Mechanisms
- Constitution of employment equity forum (if appropriate)
- Selection / nomination of forum representatives
- Documentation for consultative forum (agenda items, minute keeping, attendance registers, report back sessions)
10. Review, Recordkeeping and Monitoring
- Promotions by race and gender
- External appointments by race and gender
- Terminations by race and gender
- Exit interviews
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