Allocating Items as Not Applicable, Fixed, or Variable

When completing the pre-validation checks before downloading Employment Equity reports, you may receive validation warnings for custom items or built-in items.

Custom Items

If you get a validation warning for custom items, you may need to allocate these as not applicable, fixed, or variable. To do this:

• Click on the item in the validation warning. Alternatively, go to Settings > Custom Items, and select the relevant custom item.
• In the Employment Equity Reporting field, select one of the following:
  • Not Applicable: Select this option to exclude the custom item from equity reporting. The items below are excluded from equity reporting, as set out in the Employment Equity Act.
    • Any allowance, cash payment, or payment in kind provided to enable the employee to work (e.g. an equipment, tool, or similar allowance, or the provision of transport, or the payment of a transport allowance to enable the employee to travel to and from work).
    • Gratuities (e.g. tips received from customers), and gifts from the employer.
    • Non-employment related lump sums such as severance pay.
    • Dividends not included as remuneration by the Fourth Schedule to the Income Tax Act.
  • Fixed Remuneration: Select this option if the custom item is considered a guaranteed remuneration type. Fixed remuneration is pre-determined, non-discretionary, and not dependant on an individual's performance. Examples include a basic salary, medical aid benefit, pension fund benefit, and travel allowance.
  • Variable Remuneration: Select this option if the custom item is incentive-based, is made irregularly, is discretionary in nature, or is paid regularly but the value fluctuates. Examples include back pay, commission, performance bonuses, share schemes, retention bonuses, and dividends.
• Click Save.

Built-In Items

If you get a validation warning for built-in items, you may need to allocate these as not applicable, fixed, or variable. To do this:

• Click on the item in the validation warning.
• In the Employment Equity Reporting field, select "Not Applicable", "Fixed", or "Variable" – use the list below to assist you.
• Click Save.

The following information outlines how items should be allocated:

Annual Bonus

• Fixed – All non-discretionary bonuses should be allocated as "Fixed" remuneration. A non-discretionary bonus is not performance-based in nature, but instead is guaranteed or fixed in terms of the employment contract, such as a 13th cheque.
• Variable – All short-term incentives that are performance-based, as well as discretionary payments not related to performance, should be allocated as "Variable" remuneration. Examples of these would be performance-based bonuses and retention bonuses.

Annual Payment

• Fixed – All non-discretionary payments should be allocated as "Fixed" remuneration. A non-discretionary payment is not performance-based in nature, but instead is guaranteed or fixed in terms of the employment agreement, such as a 13th cheque or annual bonus.
• Variable – All short-term incentives that are performance-based, as well as discretionary payments not related to performance, should be allocated as "Variable" remuneration. Examples of these would be performance-based bonuses and retention bonuses.

Arbitration Awards

• Not Applicable – Arbitration awards where there is no ongoing employment relationship post the award should be excluded from equity remuneration.
• Variable – Arbitration awards where there is an ongoing employment relationship post the award should be allocated as "Variable" remuneration.

Extra Pay

• Variable – All short-term incentives that are performance-based, as well as discretionary payments not related to performance, should be allocated as "Variable" remuneration. Examples of these would be performance-based bonuses and retention bonuses.
• Excluded – Gratuities and gifts from the employer.

Public Holiday – worked

• Fixed – Salary (or wage)
• Variable – All short-term incentives that are performance-based, as well as discretionary payments not related to performance, should be allocated as "Variable" remuneration. Examples of these would be performance-based bonuses and retention bonuses.

Loss of Income Policy Payout

• Variable – Lump sums in respect of ongoing employment, e.g. back pay and leave paid upon termination.
• Excluded – Non-employment related lump sums such as severance pay.

Restraint of Trade

• Variable – Lump sums in respect of ongoing employment, e.g. back pay and leave paid upon termination.
• Excluded – Non-employment related lump sums such as severance pay.