{"id":347440,"date":"2019-10-18T12:44:56","date_gmt":"2019-10-18T10:44:56","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=347440"},"modified":"2019-10-18T12:44:56","modified_gmt":"2019-10-18T10:44:56","slug":"how-government-will-punish-businesses-to-enforce-transformation-in-south-africa","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/347440\/how-government-will-punish-businesses-to-enforce-transformation-in-south-africa\/","title":{"rendered":"How government will &#8216;punish&#8217; businesses to enforce transformation in South Africa"},"content":{"rendered":"<p>Minister of Employment and Labour, Thulas Nxesi, says that his department plans to introduce harsh measures against employers who do not meet employment equity targets.<\/p>\n<p>In August, Nxesi expressed <strong><a href=\"https:\/\/businesstech.co.za\/news\/business\/337209\/government-to-introduce-harsh-measures-to-enforce-transformation-in-south-africa\/\" target=\"_blank\" rel=\"noopener noreferrer\">concern<\/a> <\/strong>at the slow pace of workplace transformation and promised that government will now introduce new legislation to remedy these issues.<\/p>\n<p>Answering in a recent parliamentary Q&amp;A session, Nxesi said that the incoming Employment Equity Amendment Bill will expedite the pace of transformation and address non-compliance with the requirements of the Employment Equity Act (EEA).<\/p>\n<p>He added that this new bill will likely be tabled in parliament for deliberation before the end of this year.<\/p>\n<p>Nxesi said that these changes will serve as punishments to non-compliant businesses in two main ways:<\/p>\n<ul>\n<li>All organisations that are deemed non-compliant will no longer be able to reap the financial benefits of doing business with the state;<\/li>\n<li>Even non-compliant organisations that do not necessarily depend on state contracts for their business will still have to face consequences by being referred to the Labour Court for a penalty to be levied against them.<\/li>\n<\/ul>\n<p>&#8220;The amendments will empower myself as the minister of Employment and Labour to regulate sector-specific numerical EE targets, which must be complied with in order to accelerate transformation in various economic sectors because the current self-regulated EE targets did not yield positive results over the 21 years of the EEA,&#8221; he said.<\/p>\n<p>&#8220;They will also enable the promulgation of Section 53 of the EEA that deals with the issuing of an EE Certificate of Compliance as a prerequisite for accessing state contracts and to do business with the state.&#8221;<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/business\/346336\/the-south-african-businesses-hit-hard-by-retrenchments\/\" target=\"_blank\" rel=\"noopener noreferrer\">The South African businesses hit hard by retrenchments<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Minister of Employment and Labour, Thulas Nxesi, says that his department plans to introduce harsh measures against employers who do not meet employment equity targets.<\/p>\n","protected":false},"author":10,"featured_media":94621,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-347440","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/347440","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=347440"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/347440\/revisions"}],"predecessor-version":[{"id":347458,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/347440\/revisions\/347458"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/94621"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=347440"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=347440"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=347440"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}