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Parliament\u2019s portfolio committee on labour has released the Employment Equity Amendment Bill (EEAB) and the Employment Services Bill for public comment. When these bills come onto law they will have a significant impact on how employers conduct their business. The public has been invited to provide written submissions on the Bills by no later than 14 December 2012.<\/p>\n
\u201cAmong the many changes made to the current Employment Equity Act, No 55 of 1998, the EEAB introduces a new form of unfair discrimination,\u201d says Johan Botes, Director in the Employment practice at Cliffe Dekker Hofmeyr.<\/p>\n
\u201cThis will regulate situations where different employment conditions are applied to different employees who do the same or similar work (or work of equal value). Unless the employer can show that differences in wages or other conditions of employment are, in fact, based on fair criteria such as experience, skill and responsibility, such conduct will constitute unfair discrimination,\u201d he explains.<\/p>\n
Botes says that with regard to affirmative action, the Labour Department (Department) will now have increased powers to fine companies who do not comply with their employment equity obligations. The quantum of fines will be increased and may now also be determined by making reference to the employer\u2019s annual turnover.<\/p>\n
\u201cFurthermore, the group of people who benefit from affirmative action will now be limited to persons who were citizens of South Africa before the democratic era (or would have been entitled to citizenship, but for the policies of apartheid), and to their descendants. This means that the employment of persons who are foreign nationals, or who have become citizens after April 1994, cannot assist employers to meet their affirmative action targets,\u201d he explains.<\/p>\n
Mark Meyerowitz, an Associate in the Employment practice, says that the amendments will also affect a company\u2019s use of contract workers.
\n\u201cIn line with proposed amendments to the Labour Relations Act, No 66 of 1995, employees who are placed with a client by a Labour Broker for longer than six months will be deemed to be employees of the company for the purposes of affirmative action.<\/p>\n
He says that the Employment Services Bill is a new government initiative that will set up a public \u2018employment services agency\u2019, and will also provide for the regulation and registration of private employment services agencies.<\/p>\n
\u201cThese agencies are not labour brokers but institutions that will provide job seekers with certain services such as matching job seekers with available work opportunities, registering job seekers, job vacancies and facilitating other employment opportunities. The Bill will also set up a nationwide database to monitor employment and assist with government\u2019s goal of creating more jobs, decent work and sustainable livelihoods,\u201d Meyerowitz adds.<\/p>\n
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