- Your business is paying a monthly 1% skills levy to the receiver of revenue .
- This is 1% of your total payroll.
- A portion thereof , 20% is allocated to the National Skills fund.
- The balance is paid over to your SETA – Sector Education and Training authority.
- The Seta is entitled to withold a small amount for administration costs.
- You stand to recover at least 20% for basic compliancy and
- another 50% by way of pre planned training grants from the SETA.
Who needs to comply? All South African based companies with :
- more than 50 employees or
- a turnover exceeding a certain amount.
What is compliancy?
Compliancy means you MUST follow these steps –
1. ensure all employees are aware of the EE Act 2. consult with your employees 3. conduct an analysis of your company 4. draw up an equity plan showing how you intend to address EE issues 5. implement employment equity strategies 6. align your Employment Equity with your B-BBEE strategy 7. submit the mandatory Employment Equity reports . 8. show annual progress against set transformation targets and goals.
Why you should bother to comply
- Failure to comply may render your company liable to fines of up to R900 000-00.
- No B-BBEE points will be awarded for the Employment Equity element if you have not complied in full ( which may be worth up to 25 BBBEE points) , and
- By submitting a report your company gains credibility, points on the BEE scorecard and better tender prospects.
How we can assist you. We have over ten years experience in assisting companies with the Employment Equity obligations, including:
- Establishing and training Equity Committees
- Performing the required employment equity analysis
- Drawing up of mandatory Employment Equity Plans
- Assistance with corrective action strategies
- Department of Labour equity reports
- Implementation of Equity Plans and corrective actions
- Assistance with correcting issues raised in Director General Reviews