Category: Newsletter

Has the ruling by the Supreme Court of Appeal in relation to the PPPFA changed B-BBEE ?

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...

B-BBEE Fronting Indicators: Are you committing fraud?

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...

Indicative Profit Margin Calculation

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...

Getting the most out of your skills development spend!

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...

When an Inspector Calls!

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...

What Economic Transformation actually happened in South Africa in 2019?

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....

Read about the new Draft Amendments to Employment Equity!

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!

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...

Do EAP targets apply to disabled skills spend in ICT sector codes?

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...

EconoBEE’s Learnerships and Apprenticeships on Offer!

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...

Linking Succession planning to Skills development

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...

Say YES and move up a BEE Level!

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...

Better safe than sorry!

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...

DRAFT AMENDED CODES!

On the 25th of September 2019 the draft amendment Tourism B-BBEE sector codes were announced. The draft amendment Tourism sector codes aim to create a sustainable tourism industry that is globally competitive, but also transformed with the empowerment of Black people. The sub-minimum requirement for the priority elements of ownership,...

Employment Equity submission window period opens 1 September 2019 to 15 January 2020

In our previous newsletter we touched on the disconnect between Management Control and Employment Equity. In this newsletter, though, we are reminding you that the Employment Equity report submission window period to the DoL runs from the 1st of September 2019 to 15 January 2020. Designated employers (companies, government departments)...

The Disconnect between Management Control and Employment Equity

A designated employer is required in terms of the Employment Equity Act to create a representative workforce at each occupational category/level. An employer is held to be designated if they employ 50 or more employees. Should an employer have fewer than 50 employees, but have a total annual turnover as...

Jailtime for Fronting!

News within the B-BBEE community (and South African Business) has lately been dominated by articles discussing fronting and recent strides being made by the B-BBEE commission in clamping down on unlawful transactions, specific to the ownership element. In a recent article Busisiwe Ngwenya, the executive manager for compliance at the...