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DO CONTINUED LEARNERSHIPS CONSTITUTE 'ABSORPTION’?


In the context of the B-BBEE Codes, absorption is defined as the ability of an entity to secure a long-term employment contract for individuals such as learners or interns. A long-term contract is one that lasts until the individual's mandatory retirement age. In the case presented, a learner who was unemployed in 2022 enrolled in an NQF 4 Learnership and then progressed to an NQF 5 Learnership in 2023. Since this learner did not have a long-term employment contract prior to the learnerships, the Skills Development Scorecard does not recognize this as absorption. The only exception would be if a specific B-BBEE Sector Code defines absorption differently. For further guidance on this concept, Skills Development Services are available for members

Q | In 2022, ABC Traders had an unemployed Learner enrolled in an NQF 4 Learnership. In 2023 the same Learner was enrolled in an NQF 5 Learnership. Does a continued Learnership constitute Absorption?


A | Schedule 1 of the Amended General B-BBEE Codes of Good Practice defines Absorption as: “…Measured Entity’s ability to successfully secure a long-term contract of employment for the Employee, Learner, Intern or Apprentice.”


Furthermore, “long-term contract of employment” means a legal agreement between an individual and an entity that this individual would work for until his or her mandatory date of retirement;


As the Learner was unemployed and thus did not have a long-term contract of employment before the Learnerships, the Skills Development Scorecard does not recognise Absorption.


The only exception is if a B-BBEE Sector Code of Good Practice defines Absorption differently.


Skills Development Services are available for Members with regards to the concept of Absorption.

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