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, or 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
- Fixed Remuneration: Select this option if the custom item is considered a guaranteed remuneration type
- 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 bonus, dividends etc.
- Then 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, respectively.
- 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, respectively.
- 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, respectively.
- 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, respectively.
- 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.