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

Amended Codes of Good Practice (2017)

Amended Code Series CSC300: Measurement of the Management Control Element of Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC300: The General Principles for Measuring Skills Development

5. General Principles


5.1        Skills Development must:


5.1.1 Contribute to the achievement of the country’s economic growth and social development goals that will enrich the creation of decent work and sustainable livelihoods.


5.1.2 Promote the development of an industrial skills base in critical sectors of production and value-added manufacturing, which are largely labour-intensive industries.


5.1.3 Support Professional, Vocational, Technical and Academic Learning programmes, achieved by means of professional placements, work-integrated learning, Apprenticeships, Learnerships and Internships, that meet the criteria needs for economic growth and development.


5.1.4 Strengthen the skills and human resource base by encouraging the support of skills development initiatives with an emphasis on skills development and career pathing for all working people in order to support employment creation.


5.2. Recognisable Skills Development Expenditure includes any Legitimate Training Expenses incurred for any Learning Programme offered by a Measured Entity to Black People.


5.3. Skills Development Expenditure arising from Informal training or Category F and G Learning Programmes under the Learning Programmes Matrix cannot in aggregate represent more than 35% of the total value of Skills Development Expenditure.


5.4 Salaries or wages paid to an Employee of the Measured Entity participating as a learner in any Learning Programme only constitute Skills Development Expenditure if the Learning Programme is a Category B, C or D learning programme as per the Learning Programme Matrix. Salaries or wages so paid to the Employee are only claimable for the period over which that Employee was participating in the particular learning programme, during the measurement period. The maximum period for an Employee to be eligible for a Catgory C programme (excluding CPD) is 5 (five) years. Salaries for these Employees are not claimable after the 5 (five) years from the date of registration on the candidate acceptance letter or certificate.


5.5 Expenses on scholarships and bursaries for Employees do 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 afore ongoing, if the right of recovery or the condition involves either of the following obligations of the Employee, the expenses are recognisable:
5.5.1 The obligation of successful completion in their studies within the time period allocated; or
5.5.2 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.


5.6 Mandatory sectoral training does not qualify as Skills Development contribution. For the avoidance of doubt Mandatory sectoral training is limited to the following:
5.6.1 Site , project or safety inductions;
5.6.2 Toolbox talks;
5.6.3 Operators re-certification.


5.7 Training that is provided outside the country or that are provided locally but then only by foreign service providers, that is in line with the Learning Programme Matrix under Annexure CSC300 (A) is measurable if it meets the criteria in the Learning Programme Matrix. References in the matrix to terms such as ‘professional registration body’, and ‘ accredited or registered formal institution of learning’ will in only such cases include the foreign service provider whether it is actually accredited, registered or formally approved as a statutory occupational or professional body in South Africa or abroad, or not.