Outsourced B-BBEE Services

 

Priority Elements:

A concept of priority elements has been introduced, where a sub-minimum of 40% of the Ownership net value score, Skills Development and ESD are required.  Should large companies not meet this sub-minimum in all three, their BEE level would drop 1 level whereas QSEs would drop a level only if Ownership and 1 of the other priority elements are not met.

 

Although an entity will be awarded their points scored, non-compliance with the Priority Elements will result in dropping 1 level for not reaching the sub-minimum scores on Priority Elements.

                          

Even failing to reach only 1 sub-minimum of the priority elements, will see the entity dropping 1 level. Important to note, is that entities will not drop 1 level for each Priority Element not reached – only 1 level will be dropped if any Priority Element is not complied with.

 

Skills Development

As Skills Development is one of the priority elements on your BEE scorecard, this is one of the easiest ways to gain points. Skills Development make up 20 points and can score an extra 5 points of your BEE scorecard.

 

If a company does not score 40% of the 20 points they will automatically drop a level on the B-BBEE.

A company cannot claim any Skills Development points if the following are not submitted and adhered to:

  • Preparation and proof of Workplace Skills Plan (WSP) and Annual Training Report (ATR) submission
  • No mandatory training was conducted in the organisation, legally required training like health and safety, as these can also be calculated for skills points.

Other scorecard elements you can also meet with Skills Development are:

  • Socio Economic Development – Assist an Early Childhood Development Centre by upskilling their staff and developing their business
  • Corporate Social Investment/ Corporate Social Responsibility – Assist an Early Childhood Development Centre by upskilling their staff and developing their business
  • Skills Development BEE points are broken into:

 

Skills Expenditure

8

6% of training spend

Skills Expenditure on black disabled employed people

4

0.3% of training spend

Learnerships – numbers of black people as percentage of total employees

4

2.5% of total employees

Learnerships – numbers of black unemployed people as percentage of total employees

4

2.5% of total employees

Number of black people absorbed at end of learnership (training tracking tool must be developed)

5

100% or people absorbed

25

Specialised Employment Equity

The Employment Equity Act require that designated Employers need to be compliant to avoid being fined by the Department of Labour. SDS specialises in the development and implementation of Employment Equity Plans and submission of annual reports to the Department of Labour. 

 

Why Submit EE plans

  • Avoid huge fines for non-compliance (ranging between 2% and 10% of the company’s annual turnover or from 1.5 million to 2.7 million)
  • Up to R30 000 fines for responsible person – HR Manager/EE Manager
  • Ensure points on BBBEE (Black Based Broad Economic Empowerment) scorecard for Employment Equity as well as Management and Control.

 

EE Services

  • The allocation of a user’s workforce into the correct EEA9 Levels.
  • The generation of the client’s Workforce Profile Analysis to determine over and underrepresentation, as required by Section 19 of the EE Act.
  • The setting of realistic and achievable EE Goals in line with B-BBEE Targets and the requirements of the EE Act, factoring in variables such as attrition, retirements, promotions, growth/shrinkage, feeders, etc.
  •  The factoring in of each Occupational Level’s applicable Statistical Data Pool of Suitably Qualified Persons data or EAP in the setting of EE Goals
  • The calculation of annual EE Targets.
  • The identification of the most underrepresented race and gender group in any occupational level that needs to be targeted for appointment at any given time when a vacancy arises, to ensure that EE Goals are achieved.
  • Recording of progress in the achievement of EE Goals per race and gender group in each occupational level on a monthly basis.
  •  The completion of EEA2 and EEA4 Report.

 

An EE Policy and Procedure template setting out/including:

  • How the client is to approach EE and comply with the EE Act.
  • The EE Structures to be established at the client to facilitate this, as well as the effective management of the implementation of EE and its EE Plan.