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This element measures the employment equity Element of broad-based black economic empowerment for organisations. We offer guidance in the establishment of requirements relating to the act and to improve the equity ratio.

All companies with more than 50 employees and/or a turnover exceeding the following must submit an Electronic Employment Equity Report on or before the 1st of December of every year.

Sector                                                                           Turnover

Agriculture                                                                      R 2 m

Mining and Quarrying                                                     R 7,5 m

Manufacturing                                                                R10 m

Electricity, Gas and Water                                              R10 m

Construction                                                                   R 5 m

Motor Trade Retail and Repair Services                          R15 m

Wholesale Trade, Commercial Agents Allied Services     R25 m

Catering, Accommodation and Trade                              R 5 m

Transport, Storage and communications                        R10 m

Finance and Business Services                                       R10 m

Community, Social and Personal Services                       R 5 m

All organisations falling within the scope of the act MUST submit a Employment Equity report available at www.labour.gov.za failing which may lead to fines of R500’000 and or criminal prosecution.

By submitting a report the organisation automatically gains credibility and points on the BEE scorecard.

This element measures the employment equity Element of broad-based black economic empowerment for organisations. We offer guidance in the establishment of requirements relating to the act and to improve the equity ratio. 

The following are provided during service delivery.

Establish Baseline

Upon completion of the activation process a complete, Employment Equity analysis is conducted, to identify the elements in place at the organisation and give priority and direction to the implementation of priorities identified.

Employment Equity Ratios

During this process the organisations’ equity ratios and the employment equity are addressed based on the analysed ratios’, a recommendatory report is generated to identify employees that could be earmarked for developmental fast-tracking to address any equity requirements.

Succession Planning

Succession planning is also conducted during this phase identifying possible problem areas and equity challenged areas in the organisation.

Employees are also identified that can fill the problem areas based on their current skills in place and development pathway.

Duration of this process is approximately 12 to 18 weeks.

Generate checklist

Next a prioritised checklist and time delivery schedule is developed and agreed with the relevant parties in the organisation with specific deadlines and milestones for service delivery.

Focus is 100% placed on immediate commercial requirements such as Broad Based Black Economic Empowerment, and Department of Labour compliance orders.

Policies, Procedures and Plans

At this time specific attention is given to the development of the employment equity plans as well as accompanying policies, procedures and grievance procedures of the organisation.

In essence the checklist gives structure to service delivery and inform all parties of what to expect over the next 24 to 36 months.

EAP and CEE Analysis

The Employment equity economic active population analysis and Commission for Employment Equity analysis is also produced at this time as required by the Act.

All other requirements of the Employment Equity Act are affected at this time and all employees in the organisation have to complete the required training and administrative requirements of the Act.

Management and Recording

All documents and implemented interventions are recorded according to the rules and regulations of the Department of Labour.

All training interventions completed and subsequent learner Portfolio’ of Evidence produced are collected from trained employees with feedback of training as required by the Department of Labour.


Management and workers committee meetings are held on a milestone achieved basis and the minutes of the said meetings are recorded as required by the Department of Labour, the minutes are also used as evidence of compliance in terms of the organisations Broad Based Black Economic Empowerment Act.

Equity Analysis

All employees that completed their fast tracking developmental training or that has completed their required developmental pathway training for the period, that are due for promotion are now moved to their new positions.

Affirmative Action

To affect affirmative action in the organisation, a complete barrier analysis is conducted to identify which categories of the organisational employment policy hinder the implementation of an effective employment equity strategy.

Employee Movements

Tracking of employee movements are essential as the Department of Labour identifies the Recruitment; Promotion; Termination as well as Disciplinary Actions within organisations per Occupational level per Race/Gender whether permanent or temporary.


A complete employment equity analysis is performed on the affected areas of the organisation and a new employment equity ratio report is generated of the organisation for management. The report is presented to management and recorder for Broad Based Black Economic Empowerment and Employment Equity purposes.
Management of the Process

On submission of the reports the entire process restarts with the implementation of training and development and the development of earmarked employees, Stephan du Toit and Associates have both the infrastructure and knowledge to maintain and manage the processes at organisations.

On the 1st of October the Employment Equity reports generated are submitted to the Department of Labour copies of the documents are submitted to the Broad Based Black Economic Empowerment verification agent as proof of equity improvement.

Frequently Asked Questions

Employment Equity 

The purpose of the Employment Equity Act to ensure that all races, Black, White, Indian and Coloured and gender equality is fairly represented at every level of the organisation from the lowest unskilled level to executive management level.

 What is employment equity and its purpose?

According to the Employment Equity Act, 1998, Chapter I: Definitions, Purpose, Interpretation and Application the Purpose of this Act is to achieve equity in the workplace by-

a) promoting equal opportunity and fair treatment in employment through the elimination of unfair discrimination; and

b) implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups, in order to ensure their equitable representation in all occupational categories and levels in the workforce.

 Is employment equity the same as BBBEE?


Employment Equity is one of the elements of BBBEE, and addresses equity as a whole in terms of race and gender. Organisations are required to have a mix of Black, White, Indian, Coloured, Male and Female employees some of which must be disabled. BEE only looks at Blacks.

 When must I comply?

All employers in South Africa must comply with chapter 2 of the Act, But only designated employers must comply with the whole act, in other words employers with more than 49 employees or an annual turnover exceeding the thresholds.

 Why was the Employment Equity Act promulgated?

As a result of apartheid and other discriminatory laws and practices, there are disparities in employment, occupation and income within the national labour market; and that those disparities create such pronounced disadvantages for certain categories of people that they cannot be redressed simply by repealing discriminatory laws.

 What do I have to have in place?


Complying with the act requires the organisation to have ALL of requirements in place; a complete list can be found on www.employmentequity.co.za . Compliance with the act involves all employees in the organisation.

 Do we only submit the EEA2 and EEA4 report?


NO, there are approximately 10 different elements that have to be effected in the organisation, submitting the EEA2 and EEA4 reports is only about 3% of the entire compliance.

 Affirmative action means firing whites and appointing “blacks”.


That is only partially true. In terms of the act South African organisations need to have an EAP ratio of 4:2:2:1 on all 6 levels of the organisation from management to elementary workers.  So yes, in terms of the act where an organisation does not comply with the act in terms of its ratios, they need to correct this. BUT it also means firing Blacks to appoint Whites.

 What is the EAP (Black/White) ratio?

Depending of the organisations geographical location the EAP or economic active population determines what ratio between African, Indian, Coloured and White employees must be applied. A general rule of thumb is African 4: Indian 2: Coloured2: White 1. Out of the total employee contingent 50% must be female and 3% must be disabled.Who are designated or previously disadvantaged employees?

According to Chapter 1: Definitions, Purpose, Interpretation and Application of the Act, this Act applies to ALL female employees and all African, Indian, Coloured and Asian employees.

 How will they find out if I don’t comply?


YES, it was very difficult for the Department of Labour to track down organisations that don’t comply. BUT in September 2008 all systems was integrated. The process works as follows; you declare your payroll and number of employees to SARS on the EMP 201 (PAYE) form, according to your SETA /Sic Code.


The system then does a truth test by dividing the declared salaries by the number of people, if it’s more than the minimum salary it’s accepted if not the organisation will be audited.


The system then picks all organisations with more than 50 employees and whose annual payroll will exceed a predetermined threshold using a mathematical calculation. These organisations are then compared against a database of organisations that submitted the EEA2 and EEA4 reports. If not found the organisations are flagged for investigation.


This information is then sent to the SETA who now does an AUDIT on behalf of the Dept of Labour, using the Star 1 quality assessment audit. During September 2008 to March 2009 approximately 3000 organisations was audited by the Services SETA. 


Approximately 30% of these organisations will be charged with Tax fraud because they don’t comply with the Act.They can’t do anything if they catch us.


YES they can, firstly When the organisation is identified and audited by the SETA and found non compliant, the organisation will receive a compliance order from the Department of Labour, the SETA will withhold all SDL grants and charge the SDF and HR person with gross negligence and under instruction from the Minister, SARS will charge the Directors with Tax fraud. The process will then take its normal course.