State wants huge fines to enforce employment equity law Linda Ensor reports that organised business has strongly objected to proposals that will see far tougher enforcement of equity legislation and much stiffer penalties being imposed for noncompliance. As business representatives made their plea in top-level talks with President Zuma yesterday for red tape to be cut and an easing of labour laws, Department of Labour director of employment equity Ntsoaki Mamashela was briefing MPs on new turnover-linked penalties contained in the Employment Equity Amendment Bill. The government and trade unions support the tough approach, and Ms Mamashela suggested some companies had a cavalier attitude to conforming with the law because provision was made in their budgets for the payment of negligible fines, which until now have been quite low and unrevised for nearly 15 years. For substantial offences such as the failure to draw up an equity plan, to report on the progress of the implementation of the plan, or to implement the director-general of labour’s recommendations, the bill proposes a fine that could be anything from 2% to 10% of turnover.
Posted on: Wed, 07 Aug 2013 19:53:35 +0000
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