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Broad Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Codes of Good Practice on Black Economic Empowerment

Code Series 400: Measurement of the Employment Equity Element of Broad-Based Black Economic Empowerment

Statement 400 : The General Principles for Measuring Employment Equity

3. Key Measurement Principles


3.1) Measured Entities receive points on the Skills Development scorecard only if:


3.1.1) they are in compliance with the requirements of the Skills Development Act and the Skills Development Levies Act;


3.1.2) they have registered with the applicable SETA;


3.1.3) they have developed a Workplace Skills Plan; and


3.1.4) they have implemented programmes targeted at developing Priority Skills generally, and specifically, for black employees.


3.2) Expenses on scholarships and bursaries for employees does not constitute Skills Development Expenditure if the Measured Entity can recover any portion of those expenses from the employee or if the grant of the scholarship or bursary is conditional.Despite the aforegoing, if the right of recovery or the condition involves either of the following obligations of the employees, the expenses are recognisable:


3.2.1) the obligation of successful completion in their studies within the time period allocated; or


3.2.2) the obligation of continued employment by the Measured Entity for a period following successful completion of their studies is not more than the period of their studies.


3.3) Any Skills Development Expenditure by a Measured Entity that is an ABET programme is recognisable at a multiple of 1.25 to the actual value of such Skills Development Expenditure.


3.4) Skills Development Expenditure includes any legitimate expenses incurred for any Learning Programme offered by a Measured Entity to its employees evidenced by an invoice or appropriate internal accounting record.


3.5) Skills Development Expenditure arising from Uncertified Learning Programmes or from Category G Learning Programmes under the Learning Programmes Matrix cannot represent more than 15% of the total value of Skills Development Expenditure.


3.6) Legitimate training expenses includes:


3.6.1) costs of training materials;


3.6.2) costs of trainers;


3.6.3) costs of training facilities including costs of catering;


3.6.4) scholarships and bursaries;


3.6.5) course fees;


3.6.6) accommodation and travel; and


3.6.7) administration costs such as the organisation of training including, where appropriate, the cost to the Measured Entity of employing a skills development facilitator or a training manager.


3.7) Salaries or wages paid to an employee participating as a learner in any Learning Programme only constitute Skills Development Expenditure if the Learning Programme is a Learnership or falls within Category B; C; or D of the Learning Programme Matrix.