FACING A DEPARTMENT OF LABOUR INSPECTION? STEPS TO ENSURE COMPLIANCE WITH THE EMPLOYMENT EQUITY ACT AND AVOID PENALTIES

When you get this form from the department of labour, it means you are going to face a physical investigation from the department of labour.

The notice is intended to notify the selected employer that a DoL inspector will conduct an employment equity inspection at the company.

What should you do?

It is of utmost importance to act immediately within the given timeframe set by the DoL Inspector to prevent non-compliance.

The DoL Inspector will request the company to prepare and submit documents within a specific timeframe.

According to the Employment Equity Act, a designated employer is an employer who employs 50 or more employees or has a total annual turnover as reflected in Schedule 4 of the Act.

Failing to comply with the Employment Equity Act (EEA) and the Director-General Review Assessment can result in significant penalties. 

Here are the key penalties:

1. First-Time Offense: Employers can face a fine of the greater of R1.5 million or 2% of the employer's turnover.

2. Repeat Offense: If an employer has previously been found non-compliant, the fine increases to the greater of R1.8 million or 4% of the employer's turnover.

3. Severe Non-Compliance: In cases of severe non-compliance, fines can reach up to R2.7 million or 10% of the employer's turnover.

Additionally, the Department of Employment and Labour may refer non-compliant employers to prosecution, and courts consider factors such as the extent and duration of non-compliance, the employer's intentions, and investments in workforce development when determining penalties.

It is crucial to ensure compliance to avoid these penalties and demonstrate a commitment to employment equity.

Steps to Clear the Assessment

1. Complete the Assessment Form: The designated employer must complete the EEA7 Director- General Review Assessment Form, providing detailed responses to all sections. This form requires comprehensive information about the company's employment practices, workforce demographics, and affirmative action measures.

2. Provide Supporting Documentation: For each section where "YES" is indicated, the employer must provide supporting information or evidence as an annexure. This documentation should be clearly numbered and correspond to the relevant sections of the assessment form.

3. Submit Hard Copies: All information and supporting documents must be submitted in hard copies to the Department of Labour. Ensure that the documents are well-organized and easy to navigate.

4. Address Non-Compliance Issues: If the assessment identifies areas of non-compliance, the employer must take corrective action to address these issues. This may involve revising employment policies, implementing new affirmative action measures, or providing additional training to employees.

5. Engage with the Department of Labour: Maintain open communication with the Department of Labour throughout the assessment process. Be prepared to provide additional information or clarification if requested.

6. Seek EE Advice: Consider consulting with an Employment Equity expert specializing in employment equity to ensure that all requirements are met and to navigate any legal complexities that may arise during the assessment.

By following these steps and ensuring thorough preparation, employers can effectively navigate the Director-General Review Assessment and demonstrate their commitment to employment equity in South Africa.