Companies must comply with equity requirements for government’s business

Business Live reports that frustrated by the slow pace of transformation in the workplace, the government says it will invoke a section in labour legislation that will make it compulsory for companies to have a compliance certificate to do business with it. The legislation, section 53 of the Employment Equity Act, has, to date, remained dormant while government waited to see whether employers would comply voluntarily with employment equity objectives. But this has happened at a very slow pace and employment and labour minister Thulas Nxesi said on Tuesday that the government will adopt a tougher approach to companies that continue to stall on employment-equity targets.

Another measure contemplated to quicken the equity transformation in the workplace is to set employment equity targets for each economic sector, with the risk of prosecution for the failure to meet the targets for no justifiable reason. These targets will replace the system of self-regulation Nxesi says has not worked. He said there is a need to increase the risk of non-compliance so companies are aware there would be consequences.

by Linda Ensor

Releated

COSATU Post-CEC Media Briefing

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SABC management to appear before Parliament

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