Today's Labour News

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gavel thumb100 City Press writes that employers continue to ignore the 20-year-old Employment Equity Act (EEA), while companies taken to court for noncompliance have received minimal fines – ranging from R20,000 to R500,000.  

Yet, the act allows for a maximum penalty of R1.5m.  Labour department sources have blamed Labour Court judges for not imposing the maximum, saying this has allowed a vicious cycle of non-compliance to continue.  “They ignore transformation, knowing that they will get away with paying small fines.  Courts are not serious about transformation.  They are failing us,” said a source.  More than a hundred employers facing litigation at the Labour Court for not complying with transformation legislation could walk away with a slap on the wrist.  In addition to these 105 companies, the labour department apparently took 72 JSE-listed companies on review in 2017/18, for failing to adhere to their own employment equity plans.  The department issued 60-day notices to them to comply.  Most responded positively, including the JSE itself.  Of the 72 firms, nine were about to be served with summons.  Five of them settled out of court and each paid a fine of nearly R1.5m.  The department is preparing court cases against the remaining four companies which either did not have equity plans, or lied about reaching their targets.  

  • Read this City Press report by Msindisi Fengu in full at News24


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