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 After a compliance order resulted in a Labour Court case, the closed business Jinghua Garments received a fine of R200'000 plus R500'000 in costs for breaking the Employment Equity law. The Jinghua Garments case was cited several times to show how organisations can be fined for contravening the Employment Equity Act. However, most citations miss that the company was already closed when the Labour Court issued the verdict. Over the last 26 years of consultation, almost 99% of managing directors threatened to close the business if summoned. In terms of legislation, once the organisation has contravened the employment equity act, the court case will continue whether the organisation exists. The person in charge of the organisation at the time of the infringement is the organisation's representative and responsible person as per the Companies Act. After a compliance order was issued and served on Jinghua Garments by the Department of Labour Inspector, the managing director sig

How To: Do an organisation analysis for employment equity (Section 19)

  How To: Do an organisation analysis for employment equity (Section 19) To comply with the Employment Equity Act, the employment equity committee is required to perform an organisational analysis, based on the EEA12 form. Several EEA forms (EEA2, EEA12, EEA13) and Sections 19 of the Employment Equity Act require an Organisational analysis. This analysis must include the participation of all employees in the organisation, as well as any unions. It consists of 2 parts: A Quantitative analysis A Qualitative analysis Although it is important to transform the organisation, it is more important that all employees understand the impact of transformation and the long-term survival of the organisation. It is extremely important to understand that the Employment Equity Act may not be used to, cause or create the unemployment of workers, unfair or discriminatory practices or policies, or the insolvency of the organisation. The Employment Equity Act should be used to guide the employment and prom