B-BBEE — B-BBEE Codes of Good Practice: Amended Codes of Good Practice (GG 41866, 2018) (source: https://www.thedtic.gov.za/wp-content/uploads/BEE_41866.pdf)
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R E P U B L I C O F S O U T H A F R I CA
R E P U B L I E K VA N S U I D A F R I K A
Regulation Gazette No. 10177 Regulasiekoerant
August
Vol. 638 28 2018 No. 41866
Augustus
ISSN 1682-5843
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Contents
Gazette Page
No. No. No.
General Notices • Algemene Kennisgewings
Trade and Industry, Department of/ Handel en Nywerheid, Departement van
502 Broad-Based Black Economic Empowerment Amendment Act (53/2003): Codes of Good Practice on Broad Based
Black Economic Empowerment................................................................................................................................ 41866 4
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4 No. 41866 GOVERNMENT GAZETTE, 28 AUGUST 2018
GENERAL NOTICE
General Notices • Algemene Kennisgewings
DEPARTMENT OF TRADE AND INDUSTRY
Trade and Industry, Department of/ Handel en Nywerheid, Departement van
DEPARTMENT OF TRADE AND INDUSTRY
No. R NOTICE 502 OF 2018 OF 2018
502 Broad-Based Black Economic Empowerment Amendment Act (53/2003): Codes of Good Practice on Broad Based Black Economic Empowerment 41866
CODES OF GOOD PRACTICE ON BROAD BASED BLACK ECONOMIC
EMPOWERMENT
I, Dr Rob Davies, Minister of Trade and Industry hereby gazette the Youth
Employment Service Initiative within Code Series 000, Statement 000 of the
Amended Codes of Good Practice in terms of Section 9 (1) of the Broad-
Based Black Economic Empowerment Amendment Act 2003, (Act No. 53 of
2003) as amended by the B-BBEE Act 46 of 2013 for implementation with
immediate effect.
______________
DR ROB DAVIES, MP
Dr RobOF
MINISTER Davies,
TRADEMP
AND INDUSTRY
Minister of Trade and Industry
_____/_____/2018
July 2018
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STAATSKOERANT, 28 AUGUSTUS 2018 No. 41866 5
AMENDED CODE SERIES 000: FRAMEWORK FOR MEASURING BROAD-
BASED BLACK ECONOMIC EMPOWERMENT
STATEMENT 000: YOUTH EMPLOYMENT SERVICE
Issued under section 9 of the Broad-Based Black Economic
Empowerment Act of 2003, as amended
Arrangement of this statement:
Para Subject
Page
1 Youth Employment Service Overview…………………………………….3
2 Qualification for Registration for the Y.E.S Initiative…………………….3
3 The Y.E.S Targets…………………………………………………………..4
4 Eligible Employees………………………………………………………….5
5 B-BBEE Recognition………………………………………………………..5
6 Employment Conditions…………………………………………………….6
7 Informal Skills Development Expenditure for the Y.E.S Initiative………6
Annexure A…………………………………………………………………..7
Annexure B…………………………………………………………………..8
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6 No. 41866 GOVERNMENT GAZETTE, 28 AUGUST 2018
1. YOUTH EMPLOYMENT SERVICE OVERVIEW
1.1 The Youth Employment Service (Y.E.S) Initiative is to provide for, and
institute, Broad-Based Black Economic Empowerment (B-BBEE)
Recognition for Y.E.S Measured Entities and qualification criteria
applicable to, the B-BBEE Recognition for Job Creation.
2. QUALIFICATION FOR REGISTRATION FOR THE Y.E.S INITIATIVE
2.1 Generic entities with Total Revenue above R50 Million per annum must
achieve at least the 40% sub-minimum as per paragraph 3.3 under
Amended Code Series 000, Statement 000 of the Amended Codes of
Good Practice under each of the priority elements of the generic B-BBEE
scorecard. Alternatively, Generic entities must achieve an average of 50%
across the three priority elements utilising principles under paragraph 3.3
of Amended Code Series 000, Statement 000 of the Amended Codes of
Good Practice;
2.2 QSEs with an annual Total Revenue between R10 Million and R50 Million,
must achieve at least 40% in two of the three priority elements, with
Ownership being one of the two elements utilising principles under
paragraph 3.3 of Amended Code Series 000, Statement 000 of the
Amended Codes of Good Practice. Alternatively, QSEs must achieve an
average score of 40% across two priority elements utilising principles
under paragraph 3.3 of Amended Code Series 000, Statement 000 of the
Amended Codes of Good Practice with Ownership being one of the two
elements;
2.3 EMEs with an annual Total Revenue below R10 Million per annum, have
no sub-minimum eligibility requirements; and
2.4 Y.ES Measured Entities must ensure that they maintain or improve the B-
BBEE Status Level and performance against the Targets under the overall
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STAATSKOERANT, 28 AUGUSTUS 2018 No. 41866 7
Scorecard obtained in the prior year before participating in the Y.E.S
initiative.
3. THE Y.E.S TARGETS
3.1 Generic Entities:
3.1.1 Targets for Generic Entities will be the Higher between (i), (ii) and (iii)
below:
(i) 1.5% of the Y.E.S Measured Entity’s headcount in the preceding
year; OR
(ii) 1.5% of the Y.E.S Measured Entity’s average Net Profit After Tax
(NPAT) from South African operations in the immediately preceding
three years, converted to a headcount number by dividing that
NPAT number by R55,000; OR
(iii) a target as determined in Table 1 - Annexure A.
Calculation of NPAT example: For example, if Company A has an
average NPAT of R500m over the past three financial years, their
Y.E.S target will be set by converting R7.5m (1.5% of a R500m
NPAT) to a headcount number of 137 employees (R7 500 000 /
R55 000).
Headcount vs NPAT example: For example, if Company B employs
10 000 employees and has an average NPAT of R100 Million, the
target calculation would be as follows:
Target based on NPAT: (1.5% of R100 000 000) / R55 000 = 28
employees:
Target based on headcount: 1.5% of 10 000 = 150 employees
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In this case Company B’s new position target would be 1.5% of
headcount – or 150 employees - as their NPAT target equates to
less than 1.5% of their headcount.
3.2 QSEs AND EMEs
3.2.1 These entities target per annum are based on headcount numbers as
determined in Table 2 - Annexure B.
4. ELIGIBLE EMPLOYEES
4.1 Only individuals who meet the below criteria are eligible for participation
under the Y.E.S Initiative:
4.1.1 are between the ages of 18 and 35; and
4.1.2 meet the definition of “Black People” as defined in the Broad-Based
Black Economic Empowerment Act 53 of 2003 as amended by Act 46
of 2013
5. B-BBEE RECOGNITION
5.1 The table below outlines the numerous levels of B-BBEE Recognition
achievable through the Y.E.S initiative, provided the preconditions are met.
B-BBEE RECOGNITION
Achieve Y.E.S Target and 2.5 % Move 1 B-BBEE Recognition Level up on the
Absorption Scorecard
Achieve 1.5 x Y.E.S Target and 5% Move 1 B-BBEE Recognition Level up on the
Absorption Scorecard + 3 Bonus Points to the overall
Scorecard
Double Y.E.S Target and 5 % Move 2 B-BBEE Recognition Levels up on the
Absorption Scorecard
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STAATSKOERANT, 28 AUGUSTUS 2018 No. 41866 9
6. EMPLOYMENT CONDITIONS
6.1 Y.E.S Measured Entities engaging eligible employees in new positions are
subject to South African legislation governing basic conditions of
employment and working conditions;
6.2 Y.E.S Measured Entities are required to sign fixed term or temporary
employment contracts with all eligible employees filling new positions
within their Entity. These new positions must have a 12-month fulltime
work experience paid for by the Entity;
6.3 Y.ES Measured Entities must commit to ensuring a quality work
experience is provided to the eligible employee insofar as the entity is able
to provide it;
6.4 Clear communication must be provided to the employee should the
contract not be renewed or extended into permanent placement;
6.5 The new jobs must be created in addition to existing headcount. Y.E.S
Measured Entities may not replace existing positions with new positions;
and
6.6 Where Y.E.S Measured Entities are unable to create a sufficient number of
new jobs within the entity to meet their targets, they may sponsor new jobs
to be placed in EMEs or QSEs. The sponsored positions will contribute to
meeting the Y.E.S Measured Entity’s target.
7. INFORMAL SKILLS DEVELOPMENT SPEND FOR THE Y.E.S
INITIATIVE
7.1 Informal Skills Development expenditure for Y.E.S employees will be
recognised during the Verification Process of the Skills Development
element under Amended Code Series 300, Statement 300. Y.E.S
Measured Entities will be able to claim up to 50% of their Skills
Development Spend as Informal Training (Category F and G of the Skills
Development Matrix) against the Skills Development Scorecard.
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10 No. 41866 GOVERNMENT GAZETTE, 28 AUGUST 2018
TABLE 1 - ANNEXURE A: GENERIC ENTITY TARGETS
TOTAL REVENUE BAND (RM) MINIMUM BLACK YOUTH JOBS
50 – 75 6
75 – 99 7
100 – 149 8
150 – 199 9
200 – 249 10
250 – 299 11
300 – 349 12
350 – 399 13
400 – 449 14
450 – 500+ 15
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TABLE 2 - ANNEXURE B: EME / QSE HEADCOUNT TARGETS
EME / QSE Y.E.S YOUTH EME / QSE Y.E.S YOUTH
HEADCOUNT TARGET HEADCOUNT TARGET
1 – 19 1 400 – 419 21
20 – 39 2 420 – 439 22
40 – 59 3 440 – 459 23
60 – 79 4 460 – 479 24
80 – 99 5 480 – 499 25
100 – 119 6 500 – 519 26
120 – 139 7 520 – 539 27
140 – 159 8 540 – 559 28
160 – 179 9 560 – 579 29
180 – 199 10 580 – 599 30
200 – 219 11 600 – 619 31
220 – 239 12 620 – 639 32
240 – 259 13 640 – 659 33
260 – 279 14 660 – 679 34
280 – 299 15 680 – 699 35
300 – 319 16 700 – 719 36
320 – 339 17 720 – 739 37
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340 – 359 18 740 – 759 38
360 – 379 19 760 – 779 39
380 – 399 20 780 – 799 40
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