1 May 2025
There has been an increase in the number of employment equity audits conducted by the Department of Employment and Labour recently. 60% of employers in the financial year ending 31 March 2022 was found non-compliant with the Employment Equity Legislation. These contraventions could lead to the following:
Penalties
The Director-General may apply to the Labour Court to impose a fine, in accordance with Schedule 1, if a designated employer fails to prepare or implement an employment equity plan in terms of this section.
First-time offences:
An employer will be subject to a fine of the greater of R1,5 million or 2% of the employer’s turnover.
If the employer has contravened the provision once before, the fine will be the greater of R1,8 million or 4% of the employer’s turnover.
Fines have been increased to a maximum of R2,7 million or 10% of annual turnover, whichever is the greater, for repeat offenders.
If you are unsure of your Level of Employment Equity Compliance please contact us today for a Obligation Free assessment.
