New BEE Rules for Health Sector

Introduction

SAHPRA’s is required to implement integrated socio-economic strategies to ensure viable economic empowerment of all black people including Woman, Youth, People living with disabilities.

 

The objectives of this policy are to:

A new policy was drafted with the intention to govern the issuing of licenses for health product manufacturing, distribution, imports/exports, and related products / services. This policy is based on the following principles:

  • Contributing to economic transformation for meaningful black participation in the economy.
  • Facilitating significant changes in licensee management structures.
  • Encouraging license applicants to adhere to the B-BBEE Act, leading to BEE empowerment.

 

Scope:

This policy strives to take BEE compliance into consideration during the application process and issuing of licenses. The new guidelines will establish how SAHPRA will determine criteria for license issuance under section 22c of the Medicines Act.

It is anticipated that this policy will not impact the existing SAHPRA registration process for health products but be complimentary to current regulations and the BEE Codes of Conduct.

According to the official SAHPRA policy CEO00, a 2-phased approach will be followed:

 

Phase 1 (1 year process)

  • SAHPRA will require an applicant to submit its B-BBEE level certificate when applying for a license. The effective date is yet to be determined.
  • SAHPRA will verify the B-BBEE level status.
  • Should an applicant fail to submit its B-BBEE level certificate, or the certificate not be verifiable, SAHPRA will not issue a license to such applicant.
  • SAHPRA will utilize the information gathered to understand the current industry structure, and health products supply, to formulate a long-term plan.
  • SAHPRA will then develop, in consultation with the industry, and finalise criteria to be applied when license applications are reviewed and eventually issued.

Phase 2 (Post year 1)

  • SAHPRA will utilize the applicant B-BBEE level as per the approved criteria to review and issue licenses.

 

What does it really mean?

Forthcoming regulations and compliance requirements are coming, it is a matter of when will it be effective. In BEE Analyst’s experience, the best approach will be to be pro-active, don’t wait until SAPHRA drops a BEE bomb on your head. Start with your preparations now. Contact BEE Analyst for assistance.

 

Contact: Jaco Jacobs

Mobile: 082 585 6867

Office: 012 997 0037

E-mail: consult@beeanalyst.co.za

 

Latest update: Amendment to Employment Equity Bill

The DOEL has been preparing to introduce amendments to the employment equity regulations, originally set to take effect on 1st September 2023. However, recent roadshows conducted by the DOEL have unveiled that the specific effective date for these changes has not yet been formally communicated.

While the DOEL has confirmed that compliance measures and reporting for the year 2023 will continue to be based on the existing legislation, the lack of an established effective date has led to some uncertainty among businesses.

Consequently, all designated employers, regardless of their employee count, will still be obligated to submit their annual EEA2 and EEA4 reports to the DOEL by the stipulated deadline of 15th January 2024.

 

What we know:
  • The DOEL are still consolidating the public’s feedback on sectoral targets.
  • The 1st of September for implementation of the amendments and sectoral targets  are not possible.
  • For the reporting which opens 1 Sept 2023 -15 Jan 2024, use the designated employer definition and all other rules as per current legislation and not amendments.
  • Employers who have valid EE plans, do not need to draft a new plan at this point.
  • Employers whose EE plans have expired the best practice would be to continue with drafting a new EE plan focusing on both the draft sectoral targets and EAP as basis/target.

 

What we can expect:
  • Justifiable reasonable grounds will start being measured from the year (i.e., 2025).
  • When an employer becomes non-designated, they should not deregister, as COC will be done through the portal.
  • There will be no system check with the CCMA for COC, but rather a declaration from the employer and then inspectors can conduct their checks/visits for confirmation.
  • The selected EAP and sector on the new portal will stick for the 5-year period. Where there are changes within the 5 years in an organisation, they will communicate the process.
  • They are still in discussions with the DTI on the impact of the management control element for the employer who is non-compliant in terms of COC.

 

The main objectives of the Employment Equity Amendment legislation include the following:
  • To reduce the regulatory burden for small employers – that is, those employers that employ between 1 to 49 employees will be excluded from complying with the provisions of Chapter III of the EE Act.
  • To empower the Minister to regulate the sector specific numerical EE targets.
  • To promulgate Section 53.
  • To strengthen compliance, including the issuing of EE compliance certificates.

 

Read more about our HR Consulting Services on https://hrconsultsa.co.za/

Contact: Jaco Jacobs

Office: 012 997 0037

E-mail: consult@beeanalyst.co.za

Understanding Proposed Changes to Employment Equity and the Impact on your business.

1.   Introduction

The South African Government published an Amendment Bill, for discussion purposes in June 2023. Many organizations and HR leaders described the bill as “a draconic change in Employment Equity compliance. Much between huge debates and criticism, Solidarity negotiated and signed an agreement with government addressing some of the main principles of the proposed Amendments. Most leaders argue that this agreement will serve as a basis / template for the final Amendment Bill.

 

2.   Summary of the EE amendments, and potential impact on your business

 

2.1 Objectives of the proposed Changes to Employment Equity

The objective is to enhance workplace diversity, promote inclusivity, and drive equitable representation across all sectors, in a stronger attempt to transform the South African Workforce.

2.2 Sectorial Target MODEL

The DOEL is planning introduce sector-specific targets that companies will have to meet, to achieve compliance. These targets will reflect not only industries, race, and gender, but also be linked to Provincial and National geographics. Example, if your Agri related business is based in Cape Town, the Agri Sector targets as part of the Western Cape targets, will be applicable. By implication, you can expect that your targets for Coloured people, if compared to the target for Coloured people in Gauteng, will be different. The primary focus remains on the Economically Active Population (EAP) statistics, excluding unemployed people.

2.3 Analyzing Your current state of transformation

Remember that your Employment Equity Plan, supported by your annual EEA2 submissions, must remain the driving force of transformation in your business. However, you will have to align your EE plan with these changes and sectoral targets. Your starting point is obviously to conduct a detail evaluation and comprehensive analysis of your current workforce, and perform GAP analysis against the prelim targets via the proposed Amendments. Do not wait and be caught unexpectedly, start with the groundwork now. Evaluate your designated groups and identify areas for improvement. There are no quick fix solutions, without being grossly unfair, you need time to achieve transformation.

2.4 Implementing Strategies to Achieve Sectoral Targets

The Amendments make a clear statement that no one’s employment may be terminated because of transformation projects, and race should not be the sole criteria for future employment and promotions. Issues and requirements such as the inherent requirements of the job, the pool of suitably qualified individuals, their qualifications, skills, experience, capacity for growth, the rate of turnover and natural attrition in the workplace. The same is valid for recruitment and promotional trends within your business. This is certainly not an easy task.

 

How BEE Analyst can assist

BEE Analyst can assist you, or lead the process, to navigate through the intricacies and complexities of the proposed employment equity changes. It will certainly be a daunting task with many pitfalls. Besides the risk of being non-compliant, you can potentially also face penalties and fines from DOEL. Be pro-active, start now, do not wait. Get BEE Analyst to assist you! We offer professional guidance and have specialized tools to assist you throughout your EE compliance process. We will assist you from reviewing your current EE plan, followed by a detail analysis of your current EE profile, demonstrate your current state of diversity (GAP analysis), and achieve EE compliance meeting the proposed amendments.

 

Read more about our HR Consulting Services on https://hrconsultsa.co.za/

Contact: Jaco Jacobs

Office: 012 997 0037

E-mail: consult@beeanalyst.co.za

Amendment to Employment Equity Bill

Amendment to Employment Equity Bill

The Employment Equity Amendment Bill, 2020 was signed into law on the 12th of April 2023. The Bill amends the Employment Equity Act 55 of 1998, which aims to promote equity and eradicate unfair discrimination in the workplace.

The amendment proposes several changes to the existing legislation, which will have a significant impact on South African businesses.

 

The key amendments which will have a significant impact on South African business include the following:

1)   REMUNERATION: In the area of remuneration, the law requires employers to be transparent about their remuneration practices, to ensure that all employees are paid fairly and that discrimination practices are eliminated. The amendment includes a provision requiring businesses to report on the remuneration and benefits of employees based on race, gender, and occupation.

 

2)   EQUITY PLANS: The amendment aims to increase representation of designated groups in senior positions and to close the skills gap. To achieve this, companies with more than 50 employees need to submit employment equity plans spelling out how they will achieve targets and develop plans to improve representation of designated groups in senior positions.

 

3)   DESIGNATED EMPLOYER: This designated employer definition has now changed so that employers that employ fewer than 50 employees, irrespective of their annual turnover, will no longer form part of the designated employer definition and, therefore, will be exempt from compliance.

 

4)   TARGETS: Notices will be issued by the Minister setting different numerical targets for different occupational levels, sub-sectors or regions within a sector or on the basis of any other relevant factor.

 

5)   VOLUNTARY COMPLIANCE: Section 14 with regards to Voluntary Compliance has been repealed. An employer who is not a designated employer previously could notify the Director General that they wish to comply as if they were a designated employer – this section has been repealed and therefore ALL employers who are not designated employers are exempt.

 

6)   BUSINESS WITH THE STATE: Companies seeking to do business with the state will be required to submit a Certificate from the Department confirming that they are in compliance with the Employment Equity Act and its objectives, and that they do not pay their employees less than the national minimum wage.

 

7)   INSPECTION OF WORKPLACE: The law now compels labour inspectors to inspect workplaces and to issue employers with compliance orders.

 

8)   DISABILITY DEFINTION: People with disabilities includes people who have a long-term or recurring physical, mental, intellectual, or sensory impairment which, in interaction with various barriers, may substantially limit their prospects of entry into, or advancement in, employment, and ‘persons with disabilities’ has a corresponding meaning.

 

9)   PENALTIES: The Employment Equity Amendment Bill introduces tougher penalties for non-compliance and failure to report, including imprisonment of up to five years or fines up to 10% of annual turnover.

The Amendment Bill seeks to advance transformation of South Africa’s workforce by setting equity targets for economic sectors and geographical regions and requiring enterprises to develop transformation plans.

 

Impact of the Amendments on Broad-based Black Economic Empowerment (B-BBEE):

The Employment Equity Amendment Bill also seeks to strengthen affirmative action measures by introducing numerical targets for designated groups, such as black people, women, persons with disabilities, and youth. This is intended to accelerate progress towards achieving equality in the workplace and creating a diverse and representative workforce.

There has been some concern about the impact of the Employment Equity Amendment Bill on B-BBEE. However, it is important to note that the two policies are not mutually exclusive and can in fact complement each other as the Employment Equity Act focuses specifically on advancing employment equity, which is also a critical part of the B-BBEE Scorecard and addressing discrimination in the workplace.

The Employment Equity Amendment Bill is a welcome development in the ongoing efforts to promote employment equity and address systemic inequality in South Africa.

Overall, the Employment Equity Amendment Bill 2020, is a positive step towards promoting equity and fairness in the workplace. However, some businesses may see the proposed changes as an additional burden, particularly as they are required to report on remunerations and benefits. Furthermore, the amendments may be challenging for smaller businesses, which may not have the recourses to develop comprehensive plans and set meaningful targets.

In conclusion, the Employment Equity Amendment Bill 2020 is a critical piece of legislation that aims to promote equity, fairness and inclusivity in the workplace. While the proposed changes may be challenging for businesses, they are essential to ensure that all employees are treated fairly and that discrimination practices are eradicated.

Ultimately, businesses that embrace the changes are likely to benefit from a more diverse and inclusive workforce, which can lead to increased productivity and profitability.

 

Read more about our HR Consulting Services on https://hrconsultsa.co.za/

Unpacking the new Code of Good Practice on workplace harassment

To be fair, the Code isn’t that new – it came into effect in March 2022. But due to its far-reaching consequences, many HR departments and managers are still struggling to come to terms with the impact of the Code and what it requires of them.

 

Workplace harassment in South Africa is governed by several Acts, among them the Employment Equity Act. To help practitioners understand and implement the requirement of this Act, the government publishes a number of Codes of Good Practice.

Although these Codes are not binding laws, it’s important to take them into account since inspectors and judges use them as a guideline when determining whether an organisation is compliant.

The 2022 Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace replaces the original 2005 Code of Good Practice on the Handling of Sexual Harassment Cases in Workplaces. In the name itself lies a clue to one of the most significant changes in the new Code – a far broader definition of harassment that extends far beyond sexual harassment.

 

Let’s explore this new definition, as well as other key changes and employers’ new obligations.

A new understanding of harassment in the workplace

 

Impact 1: A far broader range of actions constitute harassment

The Code has an exceptionally broad definition of harassment. It includes what one would expect – physical harassment (both actual and threatened), verbal bullying and psychological abuse – but additional and perhaps more surprising examples of harassment have also been included.

 

SarcasmSlander and spreading rumoursConstant criticism
Condescending eye contact, facial expressions or gesturesRacist, sexist or LGBTQIA+ phobic languageGossiping or joking at someone’s expense
Conduct that humiliates, insults or demeansSocial exclusion or marginalisationSabotaging or impeding work performance
Abuse or selective use of disciplinary proceedingsPressuring an employee to not exercise their legal rightsPressuring an employee to resign
Surveillance of an employee without their knowledge and with harmful intentIntolerance of a psychological, medical, disability or personal circumstanceWithholding work-related information or supplying incorrect information

Impact 2: Harassment can be a once-off or repeated event

 

The Code explains that harassment can occur as a result of a pattern of consistent conduct, or a single event. In other words, where the conduct is of a serious nature, a single instance is sufficient to constitute harassment.

 

Impact 3: Harassment can occur to anyone who has dealings with the business

The Code recognises that managers, supervisors and employees are not the only possible perpetrators and victims of harassment. Victims and perpetrators could include a number of additional role players, all of whom are covered under the Code.

 

Job seekers and job applicantsInterns, apprentices and people on learnershipsVolunteers
Suppliers and contractorsClients and customersAll others who have dealings with the business

 

Impact 4: Harassment can occur in any work-related environment

Employees must be protected in any situation that is related to their work, including the following:

 

Public and private spaces in the workplaceHome office (in the case of remote working)Places where employees rest, eat or receive medical treatment
When commuting to and from work in transport provided or controlled by the employerWork-related trips, training, events and social activitiesEmployer-provided accommodation

 

Employers’ new obligations under the Code

Employers have a legal obligation to take proactive and remedial steps to prevent all forms of harassment in the work environment. To meet this requirements (and ensure your adherence to the Code) we recommend the following steps:

 

Step 1: Get the HR department up to speed

Reading this article is just the starting point – your HR department will need to get to grips with the full content of the 30-page Code and all its various requirements. This is likely to require an in-depth training course or even a facilitated session by an expert.

 

Step 2: Conduct a risk assessment

The Code requires that organisations assess the risk of harassment that employees are exposed to while performing their duties. This should include identifying historical and current risks, and compiling a risk register with appropriate mitigating measures.

 

Step 3: Compile or update your harassment policy

If your previous harassment policy extended beyond sexual harassment, you’re already one step ahead. If not, you’ll probably need to start from scratch.

 

The Code requires your harassment policy to contain some very specific statements, and it’s best practice to include the following as well:

 

  • A clear statement of your position regarding harassment, and especially that you have a zero-tolerance approach towards harassment
  • Your commitment to creating and maintaining a work environment in which the dignity of employees and others who have dealings with the business is respected
  • A description of the reporting procedure, and confirmation that those who raise complaints will not be victimised
  • A description of the action that will be taken in the case of harassment, up to and including the disciplinary process (the Code has some specific requirements in this regard)
  • A description of the counselling, treatment, care and support programmes for perpetrators and victims of harassment

 

Step 4: Drive awareness

Everyone who has dealings with your business should understand your position regarding harassment.

 

  • You must ensure that employees are educated about their rights and responsibilities in terms of the Code
  • Employees and others (such as suppliers and contractors) must be taken through your harassment policy
  • The harassment policy will need to be loaded onto all relevant company platforms
  • You’ll need to create ongoing awareness of what constitutes harassment and the duty to report it

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