SKILLS

THE CRUX OF DEVELOPMENT & EMPOWERMENT

Nelson Mandela once said, “Education is the most powerful weapon you can use to

change the world.” The quote accurately describes the goal of the Skills Development

pillar within B-BBEE legislation. What may seem like unnecessary expenditure is a

doorway for recipients of Skills Development interventions gaining knowledge. The

objective is to arm a recipient with the knowledge and skills to increase their individual

capacity to provide opportunities, so they can meet their full potential, which will provide

access to the economy. Let’s take a closer look at the categorisation of expenditure; this

is in terms of the Skills Matrix under the Generic Codes of Good Practice (Codes).

Category A | Bursaries

Institution-based, theoretical instruction alone which must

be formally assessed by educational institutions established

by or registered with the Department of Basic Education or

the Department of Higher Education and Training.

Bursaries are aimed at ‘Black’ People who are attending

institutions registered with the Department of Higher

Education and Training or Department of Basic Education.

These would include recipients at university or scholars in

grades 10 to12.

The documentation to substantiate the claim is:

> Certified copy of a South African identity document;

> A signed EEA1 or any documentation confirming race

and gender that the recipient signs;

> The Bursary Agreement;

> The proof of registration; and

> Proof of payment.

If bursary facilitation is through a third party, an organisation

must pay the third party in the applicable financial period.

The third party or bursary recipient needs to prove that

the organisation paid the money to the institution before it

conducts its B-BBEE Verification - even if it was paid after

an organisation’s financial period.

Category B | Internships

Institution-based, theoretical and practical learning, which

must be formally assessed.

Internships refer to work placements following theoretical

instruction. An organisation employs a ‘Black’ Person as

an Intern to gain experiential training as a pre-requisite to

obtaining their qualification.

The documentation to substantiate the claim is:

> Certified copy of a South African identity document;

> A signed EEA1 or any documentation confirming race

and gender that the intern signs off;

> The Internship Agreement;

> A Contract of Employment, if applicable;

> Proof that the Internship is a requirement for obtaining

a qualification;

> Invoices and corresponding evidence of payment for

direct and ancillary costs; and

> A schedule of an Intern’s renumerations for the duration

of the Internship that aligns with the organisation’s

Measurement Period.

Category C |

Learnerships

Recognised or registered structured experiential learning

in the workplace necessary after achieving a qualification,

which must be formally assessed.

Registration of these Learnerships with the relevant SETA

is a requirement. They usually span between six and 12

months. Following the intervention, the Learner achieves a

SAQA accredited certificate confirming their competence

and successful completion of the Learnership.

The documentation to substantiate the claim is:

> Certified copy of a South African identity document;

> A signed EEA1 or any documentation confirming race

and gender that the Learner signs off;

> The Learnership Agreement:

> A Contract of Employment that spans the period of the

Learnership;

> Proof of registration with the relevant SETA;

> Invoices and corresponding evidence of payments

including direct and ancillary costs;

> Schedule of earnings for the duration of the Learnership

that falls within the Measured Period; or

> On completing the Learnership, a Certificate of

Completion will provide further evidence.

Category G |

Informal Training - Work-based informal

programmes

The category refers to workplace or internal training, which

consists of one employee training another.

The calculation is quantified by the number of hours taken

for training and the trainer’s hourly rate. The calculation is

outlined as follows:

> Number of ‘Black’ People trained = x

> The trainer’s hourly rate = y

> Number of hours training = z

The documentation to substantiate the claim is:

> Certified copy of a South African identity document;

> A signed EEA1 or any documentation confirming race

and gender confirmed by the trainee;

> A training register to confirm the date, the number of

hours, as well as the trainer’s and trainee’s names. All

parties must sign off this evidence;

> The payslip of the trainer will verify the hourly rate

paid in the month training took place. It may include

presenting the trainer’s IRP5 if the Measurement Period

is a February year-end.

Category D |

Learnerships or Apprenticeships

Occupationally directed instructional and workplace learning

programs that necessitate a formal contract and must be

formally assessed.

It includes both institution and workplace-based training,

which provides theoretical knowledge and workplace

training. It results in a SAQA qualification or professional

qualification issued by an accredited or registered formal

learning institution.

The documentation to substantiate the claim is:

> Certified copy of a South African identity document;

> A signed EEA1 or any documentation confirming race

and gender that the Learner or Apprentice signs off;

> An Apprenticeship or Learnership Agreement;

> A Contract of Employment spanning the period of the

training;

> Proof of registration with the relevant SETA;

> Invoices and corresponding proof of payments;

including direct and ancillary costs;

> Schedule of earnings for the duration of the intervention that

aligns with an organisation’s Measurement Period; and

> A Certificate of Completion will provide further

evidence.

Absorption

The Bonus Points allocated for Absorption are more often

than not the desired outcome for organisations embarking

on Skills Development.

The points are realised when an unemployed ‘Black’ Person

completes a Category B, C or D training intervention and

accepts employment by the host organisation or an industry

equivalent, whereby there is no expiry attached to the

Contract of Employment.

The documentation to substantiate a claim is:

> A training tracking tool that confirms such Absorption;

> Evidence of such employment in a host organisation;

> Contract of Employment following the completion of the

skills intervention; or

> Most current payslip.

Evidence of such employment in an industry equivalent:

> A letter from equivalent organisation confirming

permanent employment, including the date

employment commenced.

> An Affidavit that lists all unemployed trainees,

confirming that an organisation did not previously claim

them under Absorption.

Mandatory Training

Any training necessary for an organisation to operate is referred

to as Mandatory Training. An organisation can cross-check

these requirements against the sector-specific Skills Statements

for each sector. These expenses may not form part of an

organisation’s Skills Development claim.

However, if a Sector is silent on a matter, it reverts to the Generic

Codes. Those measured on the Transport Sector Code are

exempt from Mandatory Training and Absorption requirements as

this sector code has not aligned with any of the amendments to

the Generic Codes since 2013.

To conclude, Skills Development holds multiple benefits for

both organisations and ‘Black’ People alike whilst strengthening

the principles of B-BBEE. Skills Development is the crux of

empowering and developing ‘Black’ People to gain access to

and strengthen the national workforce, which filters through to the

economy.