1.3 Frequently Asked Questions about EE

What's the difference between "EE" and "BEE" or "BBBEE"?

Many people confuse EMPLOYMENT EQUITY (EE) with BLACK ECONOMIC EMPOWERMENT (BEE or BBBEE - Broad-based Black Economic Empowerment). BEE is series of obligations on companies to encourage them to invest in "Black" ownership and management of their organisations. Through procurement obligations to use BEE rated suppliers, companies are more or less compelled to improve their BEE rating in order to stay in business. EMPLOYMENT EQUITY, however, is a law that all employers must abide by, and does not have quotas or numerical obligations on ownership or management of companies.


Do companies have to recruit/promote a specified number of people within a prescribed time frame, or become representative of National or Regional population demographics?

No. Companies differ widely in terms of their geographical spread and the pools from which they have to resource staff for different job specialities. For this reason the government does not require that Employment Equity is applied within a prescribed time frame. Companies set their own targets and then must make realistic plans to meet these. Companies should also plan to meet Affirmative Action targets through training, development, coaching, succession plans and social responsibility programmes.


Who are the "beneficiaries" of Employment Equity law?

The Employment Equity Act aims to make sure that every citizen of South Africa is protected from any form of discrimination. However, because historically so many people have been victims of direct or indirect discrimination, these are the people that companies should give specific attention to. They are referred to as "Designated Groups" - People of colour, women and people with disabilities. They get special consideration when companies examine their policies, to ensure there is no discrimination against them and to ensure they are well represented in the company's staff profile.


Are white people not “Designated Groups”?

White women and white people with disabilities fall into the category of “Designated Groups”.


What category do Chinese or Asian people fall into?

Historically if you were Chinese or Asian in South Africa before democracy, you were classified as Coloured. For purposes of reporting it is usual for anyone who isn't "White", "Black African" or "Indian" to be placed in the category of "Coloured". It is of course getting more difficult to classify people according to colour as we become more integrated and mixed as a society, so people can choose how they would like to be classified (as explained in the next point).


How do you decide who falls into which category - race, gender etc?

Constitutionally, every person gets to determine which racial group and gender they fall into. This is why companies must ensure that all employees complete an "EEA1" form, where they disclose their chosen racial and gender group and whether or not they have a disability. It is the employee's decision as to which category they fall into - but people can't chop and change their categories at will. There is no other way of determining a person's racial group (eg. ID document or birth certificate).


Is it only white males who are not in the category of "Designated Groups"?

No. "Designated" people are only South African citizens who were living in South Africa before 1994, or people born to parents who were considered "Black, Coloured or Indian" before 1994, or people who would have been citizens of South Africa if not for the policies of Apartheid prior to 1994. So if, for instance, a person is a Black African born in a country outside of South Africa prior to 1994, whose family wasn't affected by Apartheid policies, they would not be a "designated person" in terms of Employment Equity law.


Why do we still need to categorise people by race and gender?

In order to report to government that your company is becoming more representative of South African demographics, you have to indicate the company's staff profile in respect of gender and racial categories. The purpose of these categories is to be able to show progress over time. It is not because the categories should matter in society, but rather to indicate that your company is becoming more diverse and integrated, and also that you are investing money and effort into developing previously disadvantaged people.


Complete and Continue