Department of Labour to fine employers for non-compliance

Publication September 15, 2015

More than 75 designated employers in KwaZulu-Natal are facing fines of at least 1.5 million rand or 2% of their turnover for non-compliance with the Employment Equity Act No. 55 of 1998.

This harsh reality is being felt by non-compliant designated employers in KwaZulu-Natal.  In terms of the Act, a designated employer is “a person who employs 50 or more employees” or a person who employs fewer than 50 employees but has a total annual turnover between 6 million and up to 75 million, depending on the employer’s industrial sector.  

The Department of Labour is adopting a rigid stance in wielding the enforcement provisions against designated employers who do not comply.  Labour inspectors are conducting inspections at various companies, in some instances arriving unannounced, to assess compliance.  

Most of the fines being imposed relate to employers who do not have employment equity plans in place.  The minimum fine is 1.5 million rand and the Department of Labour is not negotiable on this amount.  Other consequences for non-compliance include a review by the director-general of a designated employer’s employment equity affairs and the issuing of written undertakings and compliance orders.

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