Ownership in the B-BBEE codes is by far one of the most complex elements to get right. Some entities feel bringing in new shareholders might impact the strategic direction of the entity as a whole; some just want to sell a stake but keep it minimal. Sale of assets, as...
There are 2 types of Grants that are awarded to companies to assist with Training and Upskilling. These are the Mandatory Grants and Discretionary Grants. Let’s look at the difference between these Grants and the benefits of each: Mandatory Grants This Grant is payable to all levy paying companies upon...
The B-BBEE Commission has recently sent out a notice that it may publish the reports of non-compliant companies! Please read the below to understand the context of the notice. JSE listed companies, public companies or organs of state and SETAs must submit annual compliance reports to the B-BBEE Commission in...
The law states that a company with a payroll that exceeds R500 000 per annum must be registered to pay the Skills Development Levy (SDL). All companies with 50 or more employees need to establish a Skills Development Committee and consult with the Committee prior to the submission of the skills...
Recently the Parliament’s Portfolio Committee on Employment and Labour has called for public comment on the Employment Equity Amendment Bill. The bill has been described by President Cyril Ramaphosa as a ‘game changer’ for Black Economic Empowerment in South Africa. The Minister of Labour, after consulting with various sectors including...
Firstly, compliments of the season to you all and here’s to wishing everyone a good 2021! I hope you have all managed to remain safe and hopefully had a decent break! Onto interesting business matters now……. Towards the latter part of 2020 we had a non-compliant QSE client come to...
EconoBEE was recently asked to participate in a live, televised interview by eNCA in relation to the Supreme Court of Appeal’s ruling on the PPPFA (preferential procurement policy framework act). Headlines such as “Court rules BEE pre-disqualification in public procurement invalid, unconstitutional” got many interested parties talking about B-BBEE. Our...
Fronting is a form of fraudulent misrepresentation in an attempt to circumvent the BEE codes. There are various forms of fronting indicators listed in legislation. In consulting, we have come across some glaring examples which we would like to point out: The black people identified by an enterprise as its...
B-BBEE News! A recent article by Business Tech, regarding South African companies trying to dodge BEE laws, illustrates how critical it is to understand and adhere fully to the B-BBEE Act. Zodwa Ntuli, the current B-BBEE commissioner, said that 83% of complaints received since 2016 were related to fronting. The...
ALIGNMENT OF WORKPLACE POLICIES WITH EMPLOYMENT EQUITY ACT On the 20th of August 2020, the Minister of Employment and Labour published the Draft Code of Good Practice on the Prevention and Elimination of Violence and Harassment in the World of Work (Draft Code) for public comment. The deadline for...
INDICATIVE PROFIT MARGIN CALCULATION The indicative profit margin is applied when a measured entity has made less than a quarter of the industry norm. Enterprise development, supplier development as well as socio-economic development are based on the percentage of either a NPAT or an indicative profit margin where a measured...
Skills development is a priority element of the B-BBEE scorecard that requires a measured entity to spend on the upskilling of its staff/external people. Due to its nature, a measured entity needs to spend in order to earn points with regards to the skills development element and, as a priority...
With the Department of Labour’s new stern approach to transformation, it is highly likely that the number of inspections will increase dramatically! These inspections will be focused on your company’s Employment Equity Plans and, specifically, whether or not the company has been implementing their plan as promised. These Employment Equity...
The B-BBEE Commission recently released the annual B-BBEE trends report for the 2019 calendar year. The purpose of the report is to assist the B-BBEE Commission to determine how organs of state, public and private entities in South Africa are performing against the generic and sector Codes of Good Practice....
Quoting slow progress since the introduction of Employment Equity regulations, it seems the Department of Labour will be introducing a stern approach to driving transformation. EconoBEE has ascertained the following: Numerical targets will be set by the department and these will be specific to your economic sector. Previously, companies set...
Earn more points on skills development: Absorption Bonus points under Skills Development Employers can earn 5 bonus points under skills development through the absorption of learners. In the 2013 Amended Codes of Good Practice (COGP) absorption was defined as the following: Absorption: means a measure of the Measured Entity’s ability to successfully...
In terms of Clause 2.3 of the Gazette No: 40407 it states that ‘’The compliance targets for 2.11.1,2.1.1.2, 2.1.2.1, 2.1.2.2 and 2.13 of the Skills Development Scorecard are based on the overall demographic representation of Black people as defined in the Employment Equity Act. For scoring purposes, the targets should...
1) The Department of Employment and Labour’s response to the impact of COVID 19 on the implementation of Employment Equity in the Labour Market Please find below a brief summary of the Commission for Employment Equity’s (CEE) response to the COVID-19 pandemic: First and foremost, they are aware of the...
As we enter the 4th week of our country-wide lockdown, I sincerely hope that everyone is coping as best they can, staying safe and coming to terms with working from home! To all our clients in South Africa, we truly value your support and business and look forward to continue...
Firstly, we would like to wish all those that celebrate, a Happy Easter 🙂 . We at EconoBEE hope you are staying safe and getting the hang of working from home! Our team has remote working capabilities and so is hard at work during this lockdown period, so please do...
In the new ICT codes, provision is made for equity ownership by historically disadvantaged persons (HDG). HDG means black persons, women and persons with disabilities and youth, who before the Constitution of the Republic of South Africa 1996 came into operation were disadvantaged by unfair discrimination on the basis of...
We’ve attached a document that gives an outline of EconoBEE’s learnerships and apprenticeships currently on offer. Before we look at that though, let’s take a look at how and why skills development in South Africa is so important, within a BEE framework. Grow your own timber through skills development...
In the past two newsletters we touched on the YES initiative and the importance of succession planning. In this newsletter we would like to discuss how it can all link and make business sense. As previously mentioned, none of these activities will ever work in any entity if they do...
Benjamin Franklin: “If you fail to plan, you are planning to fail!” A succession plan is a strategy which determines the best way for a critical employee to exit the business while ensuring that the business continues. The plan should determine who will take leadership of the business when a...
Welcome back and a happy new year to you!! 😊 The team at EconoBEE wish you a fantastic 2020 and hope that it will be a great start to the new decade! The matric results have just come out this week and, as we all know, not all the learners...
Are you ready for an inspection by the Labour Department in terms of your Employment Equity compliance? The 19th report of the Commission on Employment Equity entitled: “Transformation makes business sense” reflects the increase in employment equity reporting especially in the private sector. Part of the increase in number is attributed...
“All that glitters is not gold”. True and valid ownership in Broad-based black economic empowerment deals using trusts. The aim of the Broad-Based Black Economic Empowerment Act 53 of 2003 (B-BBEE Act) is the facilitation of B-BBEE by giving access to the economy which results in the necessary economic transformation...