The Department of Labour on Monday said it was taking six companies to court over breaches of the employment equity.
The department’s Inspection and enforcement services (IES) branch is taking the companies to court for prosecution for failure to prepare employment equity plans as per the provisions of s20 (1) of the (EEA).
In addition, the department alleges that Gooderson, Clientele Legal, Clientele Life, Mazor Aluminium, Mazor Steel and Spanjaard Limited reported to the director-general on “plans that do not exist which amounts to misrepresentation”.
Chief director statutory and advocacy services advocate Fikiswa Mncanca said the companies will be taken to the Labour Court for prosecution in relation to the employment equity breaches and the matter of “misrepresentation” will be heard at a magistrate court.
She said letters of intention to prosecute have been sent to affected companies.
Mncanca said between 14 and 18 August 12 companies were scheduled for visits. However, only six were visited and they were found not to be complying with the provisions of the EE Act.
She said the companies – JSE Limited, Safic Pty Ltd, Phumelela Gaming, Cullinan Holdings, Reubex Pty Ltd and EOH – were issued with recommendations and given 60 days to comply to contraventions.
The department will also inspect 72 JSE securities-listed companies to ensure compliance with employment equity. The National Director-General Review team started with the inspections in July and will wrap them up in December.
The National DG Review involves a process of interrogating company’s EE plans to assess whether the plan complies with legislation and is able to transform when put to test.
Mncanca said: “We have been talking about transformation and nothing seems to be happening. Transformation should not just end in paper. Also, transformation should not happen just because the Department of Labour is conducting national DG Reviews.
“Those failing to prepare EE plans will also be subjected to a penalty of R1,5 million. Repeat offenders face harsher penalties.”