LEGISLATIVE AMENDMENT AND DEVELOPMENT NEWSLETTER - SEPTEMBER 2021

This newsletter highlights the latest statutory amendments, enactments, caselaw, notices and ancillary developments relevant to the SERR Synergy products and services for the month. 

The latest Draft Tax Bill published on 28 July 2021 by the National Treasury incorporates the tax proposals made in the 2021 Budget. One of the changes proposed by Government was aimed at preventing abuse of the Employment Tax Incentive (ETI).

Government had been alerted to schemes whereby ETI is claimed by employers in respect of persons who were not actually working for the employer, such as students.

The definition of “employee” will be amended in order for the substance of the employment relationship, rather than the legal form, to govern eligibility for claiming the ETI. The proposal will be deemed to have retroactive effect from 1 March 2021.

Employment Equity Act, 1998 (Act No. 55 of 1998):

The Department of Employment and Labour published a media statement dated 16 August 2021 indicating that the Department of Employment and Labour’s Employment Equity (EE) Directorate and Inspection and Enforcement Services (IES) branch would jointly conduct the 2021 EE virtual workshops nationally.

The virtual workshops will address the 21st CEE Annual Report (Provincial EE status); provide updates on EE Amendments; 2021 EE Reporting; and EE inspections and enforcement in the labour market. The virtual EE workshops will take place from 1 September to 28 September 2021.

Constitution of the Employment Equity Committee:

SERR Synergy has identified the need to formulate a constitution for EE committees in order to regulate their composition and activities. To this end, SERR Synergy is currently in the process of finalising an Employment Equity Committee Constitution which will be provided to SERR Synergy SDF/EE clients. A properly constituted EE committee will become even more imperative once the new amendments referred to below, become law.

The following bills aimed at amending the existing EE Act were published on 25 August 2021 and are currently under consideration by the National Assembly:

•           Employment Equity Amendment Bill B14B-2021

•           Employment Equity Amendment Bill B14A-2020

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