Section 6(4) of the Employment Equity Act prohibits unfair discrimination against an employee on arbitrary grounds, including race, sex, disability, age and many others. Not all discrimination, however, is unfair. In other words, certain types of discrimination can in fact be fair, according to the act.

The act’s requirement is fleshed out in a code of good practice that, read with section 6(4) of the act, requires all employers to implement specific measures to achieve fairness in employment conditions including job grading, pay comparison and explanation of pay differentials. The act amendment has been in effect for several years, and non-compliant employers are liable for prosecution at the CCMA.

What does the act mean by “work of equal value”?

It refers to two or more jobs that might be entirely different but have the same rating value as each other. It is the job and not the incumbent that is graded. According to the Commission for Conciliation, Mediation and Arbitration (CCMA), work of equal value is interpreted as “The job is the same / identical as that of the job that it is being compared with (the ‘comparator’). · The job is largely the same and it is possible for the employee to swap jobs with the comparator. · The outputs of the job are of equal value to the employer. · The responsibility for people, finances and material are similar. · The skills, qualifications and experience for the job are similar to the comparator job. · The physical, mental and emotional effort required to perform the work are similar. · The conditions under which the work is performed (physical environment, psychological conditions, time and geographic location etc.) are similar.”

What is remuneration and how must it’s fairness be monitored?

Simply defined, remuneration includes any payment in money or in kind, or both, made or owing to any person in return for working for another person, including the state. Employers must therefore, examine all their policies, procedures and practices relating to remuneration, benefits and other employment conditions and ensure compliance with the principle of equal remuneration for work of equal value. Practical necessity requires that, to satisfy these requirements, employers ensure that there is an annual review of remuneration and benefits received by employees to ascertain whether they are legally compliant, appropriate and competitive. This is supported by setting up and administering a remuneration policy.

Steps to determine compliance with section 6(4) of the Employment Equity Act

The first step requires a determination of whether the jobs being compared are the same or are of equal value in terms of the objective assessment.

To measure jobs, it is required that the following criteria is used:

• The responsibility demanded by the work;
• The skills and qualifications required for the work;
• The physical, mental and emotional effort required to perform the work.

 The weighting attached to each of these criteria may vary depending on the sector, employer and the job concerned.

The second step requires the employer to determine whether there are differences identified are justifiable on fair and rational grounds. Differences are justifiable if they are based on 

•  the individuals seniority or length of services, individuals qualifications, ability or competence,
• individual’s performance or quality of work,
• whether the employee has been demoted for any legitimate reason but draws a salary fixed at a higher level than employee’s in his/her category,
• until their remuneration reaches that level, where an individual is in a position for the purpose of gaining experience or training,
• or difference in terms and conditions due to existence of a shortage or skill in a particular job classification.

It is essential for employers to appreciate the size and complexity of the task at hand. Success in ensuring operational effectiveness and being legally compliant requires experts who are well versed in labour law and at the same time skilled in the implementation of job grading systems.

Contact pFireExplore and let’s make it happen! www.explore.pfirestorm.co.za

pFireExplore

Growing businesses through people.                                  

Managing Director-Durban                       

Lorrel Mahomed     

lorrel@explore.pfirestorm.co.za                                  

082-747 7953

References:

Israelstam,I/(2023)Employment Equity Act and equal work for equal pay/www.businesslive.co.za

www.ccma.org.za/Equal pay for work of equal value (12 November 2023)

www.cliffdekkerhofmeyer.com/export/sites/cdh/practice-areas/downloads/Employment-Equal-Pay

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