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


Employment Equity Regulations, 2014

Work of Equal Value

7. Factors justifying differentiation in terms and conditions of employment


(1) If employees perform work that is of equal value, a difference in terms and conditions of employment, including remuneration, is not unfair discrimination if the difference is fair and rational and is based on any one or a combination of the following grounds:
(a) the individuals' respective seniority or length of service;
(b) the individuals' respective qualifications, ability, competence or potential above the minimum acceptable levels required for the performance of the job;
(c) the individuals' respective performance, quantity or quality of work, provided that employees are equally subject to the employer's performance evaluation system, that the performance evaluation system is consistently applied;
(d) where an employee is demoted as a result of organisational restructuring or for any other legitimate reason without a reduction in pay and fixing the employee's salary at this level until the remuneration of employees in the same job category reaches this level;
(e) where an individual is employed temporarily in a position for purposes of gaining experience or training and as a result receives different remuneration or enjoys different terms and conditions of employment;
(f) the existence of a shortage of relevant skill, or the market value in a particular job classification; and
(g) any other relevant factor that is not unfairly discriminatory in terms of section 6(1) of the Act.


(2) A differentiation in terms and conditions of employment based on one or more grounds listed in subregulation (1) will be fair and rational if it is established, in accordance with section 11 of the Act, that—
(a) Its application is not biased against an employee or group of employees based on race, gender or disability or any other ground listed in section 6(1) of the Act; and
(b) It is applied in a proportionate manner.