Employment transformation law set in motion, a must-read for all business owners

Employment Equity Amendment Bill, labour law, Rob Russell, Newcastillian
Photo by Razvan Chisu on Unsplash

The Department of Employment and Labour is planning to proceed with its Employment Equity Amendment Bill—a Bill which can potentially shake the country’s current employment equity laws.

During a presentation to Parliament on Wednesday, 28 October 2020, the department explained the Bill would give the Minister more control in ensuring the relevant employment equity targets in various business sectors are met.

This entails the Minister being able to determine sectoral numerical targets to ensure the equitable representation of suitably qualified people from designated groups. These groups include blacks, women and people with disabilities, who will now need to be employed at all occupational levels in the workforce.

This in English for modern-day humans translates to; the Minister will commandeer the power to force business owners to employ people from the groups mentioned above. The business owner will also have to set up a target to meet this goal. If he or she fails, they will not be able to participate in any State contracts.

When setting the necessary sector targets, there are certain factors which the Minister will consider. These factors include:

  • The qualification, skills and experience required to be employed in a particular occupational level, meaning a person will need to have knowledge and experience in the respective business’s field.
  • The rate of turn-over and natural erosion in a sector.
  • Recruitment and promotional trends within a sector.

While there is no timeline for the official introduction of the Bill, the department explains it is currently sitting before Parliament.

Speaking to Rob Russell of SA Mediations and Labour Advice & Dispute Resolution, we gain further insight into the new legislation.

Russell emphasises that he does not support the Amendment Bill, due to the implications it will have on the business sector in the long run—Explaining, this Bill is being brought through, as the Government does not feel transformation is happening fast enough within the business world. By bringing this Bill to the forefront, the Government can now fast track BBEE even further.

Looking at the work involved in implementing the Bill, Russell stresses, “This is going to mean many adjustments as the Government will now decide on compliance. While smaller businesses might benefit from the Bill, bigger businesses will feel it more.”

This he emphasises, is because they will be forced to start making the necessary adjustment virtually immediately or face the consequences.

With the business sector now looking at the Government becoming more involved with who is employed, what are your thoughts and views? Do you feel the Employment Equity Amendment Bill will ensure equity within the workforce? Or do you think it will cause further challenges in business development?

Share your views with us in the comment section below.

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