Compliance with the Employment Equity Act (EEA) is a vital responsibility for designated employers, ensuring fair representation and equal opportunities within the workplace. As we approach the 2024-2025 reporting period, it is crucial for employers and their advisors to be well-versed in the deadlines and requirements established by the Department of Employment and Labour.
Reporting Period and Deadlines
The Employment Equity reporting period for 2024 will begin on 1st September 2024 and run until 15th January 2025. During this timeframe, all designated employers—those with more than 50 employees or falling under specific categories—are required to submit their EE reports to the Department of Employment and Labour. It is important to note that reporting for the 2023 period is now closed.
Obligations and Compliance
Under the EEA, employers must report on various aspects of employment equity, including workforce demographics, recruitment policies, training initiatives, and diversity promotion efforts. Non-compliance results in penalties and triggers reporting obligations for auditors, independent reviewers, and accountants under the NOCLAR (Non-Compliance with Laws and Regulations) framework. This can affect audit opinions and necessitate the disclosure of reportable irregularities.
Importance of Compliance for Auditors, Independent Reviewers, and Accountants
The Employment Equity Act is another critical piece of legislation employers must comply with. Non-compliance triggers reporting obligations under NOCLAR, requiring auditors, independent reviewers, and accountants to report any non-compliance to appropriate authorities, thereby ensuring that ethical and legal standards are upheld in the financial reporting and management of the organisation.
Relevance to Employers
Entities with more than 50 employees have a statutory duty to comply with the EEA. Directors must fulfil their obligations to avoid legal liability. Annual submission of EE reports by the deadline is mandatory.
Part 2 of this article will review the steps necessary for compliance.
For assistance with Employment Equity reporting or any other labour or land issues, please contact McCarthy Attorneys Inc. on (033) 266 6170 or via email. We can help ensure your compliance and streamline the reporting process.