09th May 2016
LABOUR BRIEF NO. 390
On the 01st August 2014, the ‘new’ (EEA) became law and so into effect. This Act classifies unfair discrimination in the workplace. Of the most important aspects of such discrimination dealt with by the (EEA), is that referring to differing terms and conditions of employment?
In this regard, there exists different grounds of unfair discrimination viz:-
- Differences based on ground listed in the Act,
- Employees affected in terms of work of equal value. (In this regard, in order to assist concerned employers, the (DoL) has drafted a Code on equal pay for equal value of work, in order to assist employer with compliance. The ‘Code’ reads together with the Act and requires all employers to implement specific measures at the workplace, in order to achieve equality goals, such as pay comparison and explanation in terms of pay differentials.
Scope of the Act – Remuneration:
The Act defines ‘remuneration’ as any payment in money or in kind or both, made or owing to another person and includes;
– Deferred payment,
– Any form of variable compensation.
Employers must thus examine all aspects of their remuneration structure, including salary/wage increment processes.
The Act requires practical necessities on behalf of the Employer, including;
– Establishing a workable remuneration committee,
– Annual review of all employee benefits, in order to ascertain legal compliance,
– Assist in setting up a administering a remuneration policy.
The concept of “equal pay for equal value of work” has been an (ILO) requirement worldwide and with (RSA) been signatory to the appropriate Convention, the implementation of this principle in law is seen as inevitable.
(Chairperson – (CEA – LBD)