Code 300 – Employment Equity

 

 

CODE SERIES 300: MEASUREMENT OF THE EMPLOYMENT EQUITY ELEMENT OF BROAD-BASED BLACK ECONOMIC EMPOWERMENT

 

STATEMENT 300: THE GENERAL PRINCIPLES FOR MEASURING EMPLOYMENT EQUITY

 

Issued under section 9 of the Broad-Based Black Economic Empowerment Act of 2003 Arrangement of this statement

 

Para Subject

 

1                    Objectives of this statement

 

2                    Employment Equity scorecard

 

3                    Key measurement principles

 

4                    Calculating the Adjusted Recognition for Gender

 

5                    Measuremen t of the employment equity criteria

 

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Annexe 300(A)

 

 

1                   Objectives of this statement

 

The objectives of this statement are to:

 

1.1              specify the scorecard for measuring Employment Equity contributions to B-BBEE;

 

1.2              define the key measurement principles for measuring the Employment Equity contributions to B-BBEE; and

 

1.3              define the formula for calculating the score for Employment Equity.

 

2                   Employment Equity Scorecard

 

2.1               The following table represents the criteria used for deriving a score for Employment Equity under this statement:

 

Measurement Category & Criteria

Weighting points

Compliance targets

Years 0- 5

Years 6 -10

2.1.1 Black Disabled Employees as a percentage of all employees using the Adjusted Recognition for Gender

2

2%

3%

2.1.2 Black employees in Senior Management as a percentage of all such employees using the Adjusted Recognition for Gender

5

43%

60%

2.1.3 Black employees in Middle Management as a 4 percentage ofall such employees usingthe Adjusted Recognition ; for Gender

63%

75%

2.1.4 Black employees in Junior Management as a percentage ofall such employees usingthe Adjusted Recognition for Gender

4

68%

80%

2.1.5 Bonus point for meetingor exceeding the EAPtargets in each category under 2.1.1 to 2.1.4

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2.2               The Weighting points in the Employment Equity scorecard represent the maximum number of points possible for each of the criteria.

 

3                   Key Measurement Principles

 

3.1              Wherever possible, a Measured Entity must usethedata that itfiles with the Department of Labour under the Employment Equity Act in calculating its score under the employment equity scorecard.

 

3.1.1          No Measured Entity shall receive any points under the Employment Equity Scorecard unless they have achieved a sub-minimum of 40% of each of the targets set out on the Employment Equity Scorecard in respect of the both five year periods.

 

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3.2               In order for a Measured Entity to achieve bonus points at a particular level, the entity needs to meet or exceed the EAP targets.

 

3.3              A Measured Entity exempt from filing returns must compile its data for calculating its score under the Employment Equity Scorecard using the guidelines set out in the Employment Equity Act and its EE Regulations.

 

3.4               If the organisational structure of a Measured Entity does not distinguish between Middle Management and Junior Management, it can consolidate those Measurement Categories against the targets for Junior Management. The weighting points for the Measurement Categories must be adjusted as follows:

 

3.4.1         Senior Management – 8 points;

 

3.4.2         Junior Management – 6 points.

 

3.5               Black women employees in each Measurement Category qualify for enhanced recognition using the Adjusted Recognition for Gender.

 

4                   Calculating the Adjusted Recognition for Gender

 

The Adjusted Recognition for Gender is calculated in terms of the formula set out in Annex

 

(300A).

 

5                   Measurement of the Employment Equity Criteria

 

The criteria in the Employment Equity scorecard is measured in terms of the formula set out in

 

Annex 300(A).

 

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ANNEX 300 (A)

 

A: CALCULATING THE ADJUSTED RECOGNITION FOR GENDER

 

The calculation of the Adjusted Recognition for Gender is as follows:

 

C is limited to a maximum of 50% of the target Where

 

A is the Adjusted Recognition for Gender

 

B is the percentage of employees in the measurement category that are black people C is the percentage of employees in the measurement category that are black women

 

B: Measurement of the Employment Equity Criteria

 

This equation explains the method of measurement of the criteria in the Employment Equity scorecard:

 

A–§XD

 

Where

 

A is the score for measurement category indicator B is the Adjusted Recognition for Gender calculated in paragraph 4 C is the target for that measurement category as per paragraph 2 D is the Weighting for measured indicator as per paragraph 2

 

 

 

 

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