What Happens If You Don’t Comply?
Ignoring Employment Equity obligations doesn’t just put your business at legal risk — it can result in severe financial penalties, lost business opportunities, and even blacklisting from government contracts. If you’re a designated employer, compliance is not optional.
Legal Consequences of Non-Compliance
If a designated employer fails to comply with the EE Act, the Department of Labour may issue:
Labour Court Referrals
Non-compliant employers can be taken to Labour Court for failing to meet obligations.
Compliance Orders
Inspectors may issue formal compliance orders requiring corrective action.
Improvement notices
Employers are legally obligated to improve EE practices under notice timelines.
Administrative Fines
Heavy fines may be issued based on the severity and frequency of violations.
Fines for Employment Equity Non-Compliance
- R1.5 million
- Up to 10% of annual turnover
- Or both, depending on the offence and number of repeat violations
Penalties are calculated on a sliding scale, increasing with each repeated offence.
Examples of Non-Compliance
- Fail to submit EEA2 and EEA4 reports
- Submit incorrect or false information
- Don’t develop or implement an EE Plan
- Refuse to consult with employees via an EE Committee
- Discriminate unfairly in recruitment, promotion, or pay
Business Risks Beyond Fines
- Qualify for public sector contracts or tenders
- Maintain or improve your B-BBEE scorecard
- Pass Department of Labour inspections or audits
- Build trust with stakeholders, employees, and investors
Don’t Let It Get to This Point
SpecCon Holdings offers proactive, end-to-end support to keep you compliant, audit-ready, and penalty-free.
Need a compliant EE Plan fast?
We’ll help you build a complete, submission-ready Employment Equity Plan with expert guidance.