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Principles and procedures

The Employment Equity Act's (EEA) two main functions are to:

  1. Eliminate unfair discrimination
  2. Implement affirmative action measures.
Elimination of unfair discrimination applies to all employers and the process of implementing affirmative action measures requires the following from certain employers only:
  • To conduct an audit analysis with employee representatives.
  • To prepare an employment equity plan.


Step 1

The first step in the process is to adopt an affirmative action policy in principle. The policy should be created properly and will form the basis of the review, the employment equity plan and the future goals of the company. The employer then collects information and conducts a survey of its employment policies, practices, procedures and the working environment. This survey can be conducted by a chosen "audit committee" or Group HR Manager with discussions with employees to reflect race, gender and the interests of the disabled, and/or any trade union.

No employer may knowingly avoid becoming a "designated employer". A "designated employer" is the following:
  • an employer who employs 50 or more employees;
  • an employer who employs less than 50 employees but has a total annual turnover that is the same or more than the annual turnover of a small business in terms of Schedule 4 to this Act.

The turnover requirements in terms of Schedule 4 are as follows:
"Transport, Storage and Communications = R10 million"

"Designated groups" means black people, women and people with disabilities.

The survey must cover all levels of staff to determine if there is too few people in the groups of black people, women, and people with disabilities. The results must show how many of these people are in the company.


Step 2

Once the survey has been completed, an employment policy for equal opportunities is created based on the results of the survey. The plan must aim at achieving progress towards equal opportunities. The employment equity plan must include:

  • The duration of the plan which must not be shorter than 1 year or longer than 5 years.
  • Goals to be achieved for each year of the plan; e.g. numbers of previously disadvantaged people in the workplace, if discrimination had occurred in the past, a good attitude towards working together, overall attitudes in the workplace, the work environment etc. This can be conveyed through a statement of intent.
  • The employment barriers that were discovered in the survey, and the steps that the employer must take to overcome these barriers.
  • The affirmative action measures to be implemented based on the audit. These should include goals for numbers of staff, new appointments, recruitment, selection and assessment, performance evaluation, job description, keeping staff, education, training and development and how to deal with experts and a lack of human resources. It is very important to stress that affirmative action measures put in place by designated employers should try to keep and develop people from previously disadvantaged groups and would include training measures such as planned in terms of the Skills Development Act.
  • If it is noticed after the survey that there are too few people from previously disadvantaged groups, goals must be set to change this and achieve the right mix of people in the workplace. These people should be qualified people in each occupation, category and level. A plan must be made to commit to a date by when these goals will be achieved.
  • Proper targets must be set with investors. These will point the company in the right direction and will serve as an example to monitor the progress over the duration of the plan. Hiring or promotions must also be based on skills and experience, as well as the potential to succeed with these goals within a reasonable time.
  • A timetable for each year of the plan for achievement of all goals and objectives.
  • Goals to monitor the plan and to see whether good enough progress is being made towards confirming employment equity.
  • Ways to handle grievances or resolve disputes about the understanding and function of the plan;
  • The people responsible for monitoring and implementing the plan and any other matter that is regulation. This can be an Affirmative Action Committee appointed in agreement with employees and the HR Manager.
  • The final responsibility for the plan rests with Executive Management.
  • The company will place a summary of its Employment Equity plan with the Department of Labour and give a progress report on the plan to the Director General of the Department of Labour once every year.


Diversity must be valued


Sometimes diversity can create misunderstanding, mistrust, bad communication, harassment, racial or gender discrimination and conflict, and it can then impact negatively on both the staff and the Company.

Companies must aim to create a good environment for their staff so that they can grow to their full potential in a workplace that is free from any form of harassment, sexism, racism or unfair discrimination.