Employment Equity Act Overview

Employment Equity Act (EEA)

3.1 Purpose of the EEA

• The EEA allows employees who do the same work to be paid equally.
• Eliminates discrimination on grounds of gender/race/disability in the workplace.
• Promotes equal opportunity and fair treatment in the workplace.
• Promotes diversity in the workplace by ensuring that people of diverse backgrounds are appointed.
• Protects employees from victimization if they exercise the rights given to them by the EEA.
• Ensures equal representation of all population groups in the workplace.

3.2 Impact of the EEA on business

Positives/Advantages

• Encourages consultation between employer and employees.
• Promotes equal opportunity and fair treatment in the workplace.
• Impacts positively on BEE ratings for businesses.
• Appointment process is clearly defined, so all parties are well informed.
• Motivates employees because the workforce is more diverse/representative/inclusive.
• Motivates employees because everyone has the same employment opportunities.
• Promotes the implementation of affirmative action measures to redress the imbalances in employment.
• Provides all employees with an equal opportunity to be selected/appointed/promoted in a position.
• Provides employees with legal recourse if they believe they have been unfairly discriminated against.
• Prevents unfair discrimination as it ensures that the workforce represents the demographics of the country.
• Creates a framework of acceptable employment practices/affirmative action measures.
• Encourages diversity in business by employing people from various racial backgrounds.
• Boosts business in a better position to negotiate contracts with the government/impacts positively of BEE ratings of businesses.
• Certified psychometric tests may be used to assess applicants/employees to ensure that suitable candidates are appointed.

Negatives/Disadvantages AND/OR

• Expensive to train/employ someone who knows little about the Act.
• Fines/Penalties for non-compliant businesses may be expensive for the business.
• Diversity in the workplace may lead to conflict/unhappiness.
• Often positions go unfilled because there are no suitable EE candidates.
• Skilled people from designated groups may demand higher salaries which increase salary expenses.
• Job hopping of skilled/trained EE appointees may increase staff turnover.