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View All NewsSouth Africa – Employment Equity Act implementation criticised
The official gazetting of the implementation date of the South African Employment Equity Act last week has been criticised by the Federation of African of Professional Staffing Organisations (APSO), as giving the business community insufficient time to implement any required changes.
The amended act was first published in the South African Government Gazette on 16 January 2014, but no implementation date was given. It was announced on 25 July 2014 that it has now been scheduled to come into effect on 1 August 2014.
One of the strongest critics of the short period for implementation is CAPES, the Confederation of Associations in the Private Employment Sector, an umbrella body formed in 2002, to create a unified voice for the South African staffing industry.
In a statement, CAPES commented: “The Act and its path to amendment has been the subject of much criticism and at CAPES we have been at the forefront of the discussion and negotiation with our representatives present at every possible forum, including NEDLAC (National Economic Development and Labour Council).”
“Of concern is the short notice on which the implementation of this amended piece of legislation will occur. This leaves little time for companies to amend their processes and to ensure that they comply with the new legislation, some of which contains potentially confusing concepts, such as “equal treatment”; and where the regulations should provide some clarity.”
APSO President and CAPES Member, Tabea Magodielo, an Employment Equity Commissioner, has confirmed that the Commission is currently working on a Code of Good Practice with regard to Equal Pay; however there are no details about when this process will be finalised and the Codes approved.
The most controversial of the changes to the Act is the increase of fines, ranging from 2% to 10% of company turnover; with alternative values should they be greater than a fine based on turnover, or as a result of certain specific offences.
The CAPES statement added: “We in no way support non-compliant business, however the substantial increase in fines, linked to the discretion provided to labour inspectors in ensuring compliance, opens the door for potential corruption.”
“Raising further confusion are statements being made in respect of equal treatment and, linked to this, the Labour Relations Bill that calls for equal treatment after three months employment between permanent employees and temporary workers in the event of the employee earning below the threshold amount (currently ZAR 205,433.30 (USD 19,313) per annum).”
“[However], the Labour Relations Bill has not yet been signed off by the President and is therefore not yet implementable. There is clearly a need for this legislation however it is critical that the implementation thereof meets the purpose of the Act, that is, to ensure equality.”
To read the changes to the Employment Equity Amendment Act 2013, click here.