The Department of Trade Industry and Competition ( the dtic) released clarification  notes a while ago in a questions and answers format as a point of reference for implementing the Amended General B-BBEE Codes of Good Practice for organisations and B-BBEE Rating Agencies.   The objective of Absorption, as outlined in the 2019 amendments to Statement 300 , is to create employment for unemployed people upon completing their Learnerships, Internships or Apprenticeships.   Q |  What is common practice if Absorption happens after an organisation’s Measurement Period but before the date that appears on an organisation’s B-BBEE certificate?   A | Absorption must happen before the end of an organisation's B-BBEE verification, irrespective of the Measurement Period. As long as the person was a learner within the financial period, it should be claimable where they have completed the learnership programme by the time of verification.   Skills Development Services is on hand to assist members claiming Absorption under Skills Development.

Often an unemployed learner shows incredible potential. Hence, organisations want to recruit them before the end of their 12-month learnership. However, will employing a previously unemployed learner before the 12 months allow an organisation to claim Absorption? What does Statement 300  say?   Point Indicator 2.1.3 of the Skills Development scorecard under Statement 300 of the Amended General B-BBEE Codes of Good Practice states:   "2.1.3 Number of black people absorbed by the Measured Entity and Industry Entity at the End of the Internship, Learnership and Apprenticeship programme under paragraph 2.1.2.1."   Therefore, Absorption can only take place at the end of a Learnership, Apprenticeship or internship.   As per Schedule 1 , the definition of Absorption is as follows:   "… a measure of the Measured Entity's ability to successfully secure a long-term contract of employment for the Employee, Learner, Intern or Apprentice”.   The concept of a long-term contract of employment under Schedule 1 has the following definition:   "…   a legal agreement between an individual and an entity that this individual would work for until his or her mandatory retirement date."   Kindly note that the requirements for Absorption may differ under specific B-BBEE Sector Codes of Good Practice.   Skills Development Services  are on hand to assist members claiming Absorption under Skills Development.

Informal training is the means that many organisations use to drive their Skills Development mandate. Category G is Informal Training whereby the Skills Matrix references work-based informal programmes. It refers to the workplace or internal training, whereby one employee trains another.   The following evidence substantiates a claim for this category (not limited to):   Certified copy of a South African identity document; A signed EEA1 or any documentation confirming race and gender presented by the trainee; A training register confirming the date, the number of hours, as well as the trainer’s and trainee’s names. All parties must sign off this evidence; and The payslips 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.   Skills Development Services  are available to guide members on how to claim such Training initiatives.

VAT is a Total Measured Procurement Spend (TMPS) exclusion as per  Clause 6.1 of Statement 400 of the Amended Generic Codes of Good Practice :   “6.1 Taxation: any amount payable to any person representing a lawful tax or levy imposed by an organ of state authorised to impose such a tax or levy, including rates imposed by a municipality or other local government."   Therefore, to confirm that VAT is an exclusion from an organisation’s TMPS, it must be recorded as such in its Audited Financial Statements or Financial Statements.   Support Services  are available to guide members on TMPS Exclusions.

From time to time, the South African National Accreditation System (SANAS) publishes a list of B-BBEE Rating Agencies that no longer have SANAS accreditation due to it being withdrawn voluntary or involuntary, or due to its expiry. The core aim of publishing the list is to assist those receiving B-BBEE Certificates in identifying invalid credentials.    This list will further assist B-BBEE Rating Agencies when verifying the element of Enterprise and Supplier Development. It is vital to take note of the date of withdrawal or expiry as a B-BBEE Certificate will remain valid for 12 Months if issued before the date that a B-BBEE Rating Agency lost its accreditation.   B-BBEE Certificates issued by SANAS Accredited B-BBEE Rating Agencies must contain the unique SANAS Accreditation Symbol to ensure that the B-BBEE Verification Certificate is valid.   B-BBEE Verification Services  are available to assist members to ensure that they understand the requirements for Valid B-BBEE Verification Certificates.

The Employment and Labour Minister recently announced an increase in the National Minimum Wage (NMW) to R27,58 per hour as of 1st March 2024. The increment aligns with the NMW Act of 2018 .  The policy framework of this Act is the floor, a level below which no employee should be paid.   The Act dictates that it is illegal and unfair labour practice for an employer to unilaterally alter an employee's working hours or other Conditions of Employment due to the wage adjustment. Notwithstanding, the NMW covers the wage payable for ordinary work hours and excludes allowance payments, such as transport, tools, food or accommodation, or payments in kind such as board and lodging, tips, bonuses, or gifts.   The Act requires that the NMW Commission reviews the prescribed rates annually, then makes recommendations to the Minister on any adjustment, taking into account alternate views like public comment.   The increment applies to Y.E.S Employees who fall under that wage bracket.   Human Capital Services are available to direct Members in implementing the amended NMW adjustment.

The Minister of Employment and Labour,  Thulas Nxesi , has released a Notice regarding the Draft Regulations on Proposed Sectoral Numerical Targets   for public commentary, in anticipation of the implementation of Section 15A of the Employment Equity Amendment Act No. 4 of 2022.The Draft Regulation on the Proposed Sector targets has been gazetted on 01 February 2024 and public commentary is open for 90 days from the date of publication. All public commentary must be made in writing and sent to: ·      christina.lehlokoa@labour.gov.za ·      julian.mohale@labour.gov.za ·      innocent.makwarela@labour.gov.za   Human Capital Services are available for  any queries or challenges regarding submissions.

The author or deponent of a Sworn Affidavit must be a duly represented registered Director / Owner / Shareholder / Member etc. of an organisation as per company documentation. Where an organisation has foreign shareholders, the same principle applies. A Sworn Affidavit is invalid if anyone other than duly represented individuals function as a deponent.   Certificate Collection Services  are available to assist with identifying valid and invalid Sworn Affidavits.

An organisation may not claim the salary for an Employee Bursar as part of its Bursary Programme. However, as per 2.1.1.2 of Statement 300 of the Amended General B-BBEE Codes of Good Practice , an organisation may claim a Stipend for an unemployed Bursar.   2.1.1.2 refers: “Skills Development Expenditure on bursaries for ‘Black’ Students at Higher Education Institutions”.   Furthermore, clause 5.5 states: “Salaries or wages paid to an employee participating as a learner in any Learning Programme constitute Skills Development Expenditure if the Learning Programme is a Learnership, Internship and Apprenticeship (Category B, C and D) of the Learning Programme Matrix or a stipend linked to a bursary programme in terms of paragraph 2.1.1.2.”   Historically, this principle results in organisations giving preference to unemployed Bursars, where they can claim a higher overall cost.   Members need to consider the return on investment as well as the B-BBEE points when developing their bursary strategy. Additionally, members must ascertain whether bursaries fall into their Employee Value Proposition (EVP) and their Training Plan before being driven blindly by the B-BBEE points in isolation.   Skills Development Services  are on hand to guide members in making expenditure claims.

For most SETAs, the deadline for submitting Workplace Skills Plans (WSPs) and Annual Training Reports (ATRs) is 30th April 2024. Where organisations must submit these reports to their relevant SETA, they should obtain points under the Skills Development element. As Skills Development is an identified Priority Element, not submitting an ATR and WSP could trigger the Discounting Principle, which will impact an organisation’s overall score. The information contained in the WSP and ATR must coincide with the data submitted to an organisation's B-BBEE Rating Agency at the time of their B-BBEE Verification. Both the WSP and ATR are strategically designed documents that systematically identify any skills gaps, which align with the government's overall Skills Development Strategy. Both intend to track development, plot succession plans, and monitor the overall progress of organisations against set targets. Skills Development Services  are available for any queries or challenges regarding submissions.

Whilst making a financial contribution to an Enterprise Development or Supplier Development Beneficiary is deemed a contribution, it does not always constitute a sustainable claim. A claim for each of these sub-elements needs evidence that demonstrates an organisation’s intervention has contributed to growth, sustainability, as well as operational and financial independence.   The monetary route is one contribution option. However, other avenues are contributing an asset or upgrading equipment. In such a case, the value of the asset or the upgrade will determine the claim. It is important to note that only the asset or upgrade is a claim. A B-BBEE Rating Agency will not recognise other line items on an invoice that do not relate to the initiative.   When submitting a claim for granting an asset, it is irrelevant whether it is new or pre-owned, imported or locally produced.   The Enterprise & Supplier Development Services are available to help members ascertain that their investment is an authentic contribution.

Danny Makhubela | 18 March 2025 ActionSA notes that the Disability Grant proposed by the Minister of Finance during the 2025/6 Budget Speech this week, has been increased from R2,190 to R2,320 per month, effective 1 April 2025. For over 3,3 million people with disabilities in South Africa, the proposed increase of R130 per month is not sufficient to cover their daily needs for rent, food, toiletries and specialised transport, as well as cost of replacing crutches or wheelchairs at public hospitals, or the cost of special skin care products for people with albinism. In addition, the proposed VAT increase of 0,5% this year and 0,5% next year is only adding fuel to the fire of their financial plight. The financial challenges that people with disabilities face in South Africa leave them dependant on others for their survival, and robs them of human dignity. People are considered persons with disabilities when they have a physical or mental impairment that is long-term or recurring, which limits their prospects of entry into or advancement in employment. An impairment may be physical or mental, or a combination of both. Physical refers to a partial or total loss of bodily function and includes sensory impairments. Mental impairment refers to a clinically recognized condition or illness affecting the person’s thought processes, judgment, or emotions. So as to make provision for the increased financial burden on people with disabilities and to assist in their integration and independence in society at large, the Employment Equity Act 55 of 1998 mandates that employers aim for a 2% representation of persons with disabilities in their workforce. While learnerships for people with disabilities generally target individuals between 18 and 35 years old, in reality, applications for learnerships are open for persons aged 18 to 28 years old. Persons over the age of 28 are unable to apply for learnerships, and are forced into a spiral of poverty at a young age. ActionSA calls for government to prioritise people with disabilities by not increasing VAT by 1% over the next two years, but rather by ensuring that provisions made for their integration in the workforce by the Employment Equity Act 55 of 1998 are upheld, and that learnerships for people with disabilities are made possible until 35 years old. The dignity of 3,3 million people with disabilities in South Africa is dependent on government to allow them opportunity to compete in the market space. ActionSA will continue to advocate for an inclusive and prosperous society for all its people. ‘Disclaimer - The views and opinions expressed in this article are those of the author(s) and not necessarily those of the BEE CHAMBER’. https://www.actionsa.org.za/increase-of-disability-grant-not-sufficient-to-off-set-vat-increase/