10 August 2017

South Africa: Labour On Review of 72 JSE Securities-Listed Companies for Compliance With EE Legislation

press release

Department of Labour places 72 JSE Securities-listed companies on its beam of radar for compliance with EE legislation

The Department of Labour's Inspection and Enforcement Services (IES) branch has initiated a National Director-General (DG) Review to inspect 72 JSE Securities-listed companies to ensure compliance with employment equity.

The initiative is part of achieving the department's outcome to promote equity in the labour market. The National Director-General Review team started with the inspections last month (in July) and these will continue until December 2017. The National DG Review involves a process of interrogating company's EE plans to assess whether the plan complies with legislation and is able to transform when put to test.

According to Department of Labour Chief Director Statutory & Advocacy Services, Advocate Fikiswa Mncanca the programme started with a review of the JSE Securities Exchange, which the department found it was wanting when it comes to EE implementation.

Mncanca said the DG review found that the JSE Securities plan was not complying in terms of Section 20 (2) of the Employment Equity Act and DG recommendations were issued and the CEO and her team signed the recommendations and agreed to address the shortcomings.

The JSE has been given 60 days to comply.

While the inspections and National DG review(s) are in progress, the department is also busy with EE workshops across the country. The department started EE workshops in July to engage with stakeholders nationally to ensure compliance with EE legislation. The workshop will end in September in Gauteng.

"It is our responsibility to educate our stakeholders on the expectations, conduct inspections to check compliance and for those employers that are not willing to comply refer them for prosecutions and enforcement compliance," Mncanca said.

Mncanca cautioned that if a company does not have a plan, it will be subjected to a fine of R1,5-million. Those failing to report on EE plans will also be subjected to a penalty of R1,5-million. She said if a company has reported on EE plans, but is found not to have an EE plan it will be taken to criminal courts for prosecutions and enforce compliance.

Issued by: Department of Labour

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