EconoBEE wins a YES Programme related Case for our Client!
The YES4Youth Programme is a fantastic initiative that is focused on eradicating the high unemployment rate amongst South African Youth. The programme encourages companies to provide unemployed Youth with 12-month work experience (that can be added to their CVs), as well as possible permanent placement within their ranks.
However, as it relates to B-BBEE, there are still a few points that need to be cleared up:
- Can accommodations be made for extenuating circumstances?
- EconoBEE recently experienced a unique situation in that a company had embarked on their second year of the YES Programme as a QSE. They had met all targets identified on the QSE Scorecard in order to maintain their Level 2. However, after the financial year ended, the financial statements stated that this company’s turnover exceeded the QSE threshold, therefore making them a Generic. As a result, this company had not been able to maintain the Level 2 as planned.
- This resulted in the verification agency not awarding the company their YES Benefit.
- EconoBEE decided to take this scenario to the DTI on our clients behalf, we presented the evidence to show that had the company’s turnover stayed in their QSE threshold, they would have maintained the Level 2.
We won the case, and our client was able to add the YES Benefit to their scorecard!
- Who qualifies to use the YES Programme and obtain B-BBEE Benefit?
- First time companies must achieve a compliant B-BBEE Certificate in order for the YES Programme to be applied at audit stage.
- If a company would like to continue with the YES Programme for a second year, said company would need to maintain (or improve on) their previous B-BBEE Level. Therefore, if you achieved a Level 4 in your first year using the YES Programme, you will have to maintain the Level 4 in the second year.
- Should the previous level not be maintained after verification, the YES Benefit will not be awarded.
- Does the YES Programme work according to a Company’s Financial Year (much like B-BBEE does)?
- Like B-BBEE, the YES programme does rely on a company’s Financial Year, however this is only in relation to the payments and registration. All payments to the YES Programme (Company Registration Fees as well as Youth Registration Fees), must be paid to the YES Programme before the end of a company’s financial year.
- In addition to this, all Youth should also be registered on the system within the same Financial Year.
- The financial year referenced above, would be the same financial year that a company would be verified on for B-BBEE purposes, which is why these payments need to be made in the same year.
- Duration of the YES Programme:
- The YES Programme is a 12-month Programme and the B-BBEE benefit can only be awarded in the below instances:
- Year 1: any company that is implementing YES for the first time can be awarded the B-BBEE benefit immediately, without the Youth needing to complete a minimum number of months.
- Year 2 and Beyond: any company that continues on the programme from year 2, will need to ensure that the YES candidate complete a minimum of 8 months on the programme (each year) in order to be awarded the Yes benefit.
Contact EconoBEE now to help guide your company with cost-effective strategies to maximise your scorecard and ensure your compliance to the objectives of the B-BBEE Act.