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The Department of Trade and Industry issued the gazette of the Youth Employment Service initiative.


Minister Rob Davis issued the final Gazette of the Youth Employment Service (Y.E.S) 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 Act 2003 as amended. The proposed changes to the codes where released for public commentary on the 28th March 2018, which introduced for the first time the Y.E.S initiative after the presidential launch in March 2018.

The purpose of the Youth Employment Service initiative is to provide and establish Broad-Based Black Economic Empowerment (B-BBEE) recognition for entities who are registered with the Youth Employment Service and entities who meet the job creation requirement.

What is the qualification criteria to register for the Y.E.S initiative?

• Generic entities (entities with total annual revenue above R50 million) must achieve at least 40% sub-minimum for each priority elements (Ownership, Skills Development and Enterprise & Supplier Development) of the Generic scorecard or achieve an average of 50% across the 3 priority elements.

• Qualifying Small Enterprise (entities with total annual revenue between R10 million and R50 million) must achieve at least 40% in two of three priority elements (with Ownership being one of the two elements) or achieve an average score of 40% across two priority elements.

• Exempt Micro Enterprises (entities with total annual revenue below R10 million) have no sub-minimum eligibility requirements.

• Y.E.S entities must ensure they maintain or improve their B-BBBEE status and performance against the Targets under overall scorecard obtained in prior year before taking part in the Y.E.S.

Job creation targets to achieve enhanced B-BBEE recognition


• The higher between

• 1.5% of entity headcount or

• 1.5% average NPAT for preceding 3 years

• Further Targets set in a annexure Table provided


• Target based on headcount numbers determined in Table 2 in the Annexure of Statement 000: Youth Employment Service

Eligible employees for Y.E.S

• Black People (as defined in B-BBEE Act) who are between the ages of 18 and 35

B-BBEE recognition available

Achieve Y.E.S target and 2.5% absorption - Move 1 B-BBEE recognition Level up on scorecard

Achieve Y.E.S target and 5% absorption - Move 1 B-BBEE recognition Level up on scorecard + 3 bonus points on overall scorecard

Double Y.E.S target and 5% absorption - Move 2 B-BBEE recognition Level up on scorecard

Other conditions that are required to be met for the Y.E.S initiative include the following:

• Employment conditions must meet basic conditions of employment.

• Fixed term or temporary contracts with eligible employees for a 12 month full time work experience, they should:

• Commit to ensuring quality work experience.

• Clear communication should be provided to the employee if the contract is not renewed or extended into permanent placement.

• When entities are unable to create sufficient number of jobs, the may sponsor new jobs to be placed in EME’s or QSE’s

• Informal Skills Development expenditure for Y.E.S employees may recognised under the Skills Development element under Category F & G and legible to claim up to 50% of the entity’s informal training expenditure.


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