Time to Abolish the Sector Codes – EconoBEE Newsletter 13 October 2015

EconoBEE - BEE Points = Business

Our last newsletter Overlapping Rating Periods – Right or Wrong” received such a wonderful response. Unsurprisingly it is a very controversial aspect of current verification preparation. Hopefully we will see some positive responses from the DTI to accommodate the unfairness caused by the DTI’s delayed announcement.

Time to Abolish the Sector Codes

The sector codes have been a problem since the day they were first released. They add no value to the transformation process – in fact many companies use the “imminent release” of a sector code as a reason to continue delaying their own BEE activities. Companies choose to follow a sector code only if it is in their interests. We have complained countless times about the tourism sector codes being inconsistent with the standard codes and not being followed. Many sector councils are dysfunctional. In the case of the ICT sector the minister only appointed the council less than a week ago.

When the amended codes were published as a draft in 2012, the dti stated that the sector councils would be expected to align the sector codes with the amended codes. The dti released some of the codes in 2013 and the remaining codes in May 2015, but to date not one sector code has been finalised.

The process is complicated: Once any sector council has reached agreement with its stakeholders, it drafts its code and sends it to the dti for approval. Then the dti issues it as an official draft in terms of section 9(5) of the B-BBEE Act. There must be a public commentary of AT LEAST 60 days, before the dti and sector council work towards a final sector code which can be issued in terms of section 9(1) of the Act. In reality this takes much longer – sometimes up to a year, and in certain cases the sector code is never finalized.

There are nine existing sector codes. Of those only the tourism sector code has been aligned and released as a draft. The MAC charter, which has never previously been a sector code has also been published for comment. Rumours are that Property is also ready for a draft gazette. Other sector codes are in various stages of disarray (ie the stakeholders are unable to reach a consensus).

The minister’s clarification notice of 15 May 2015 (the one that withdrew the controversial broad-based and ESOPs notice) also has this important paragraph:

(c) Further extend the transitional period for the alignment of Sector Codes to 30 October 2015. From 1 November 2015, Sector Codes that are aligned shall be effective in accordance with paragraph (b) of this Notice. Consideration shall be given to repealing any Sector Codes that are not aligned and ready for gazetting by 30 October 2015.


Employment Equity Reporting

Each year people are required to remember many different things. For example, every year you remember to process new financials, pay your taxes, wish your friends a happy birthday and you remember to do your workplace skills plan submission and your employment equity reports. Some of these tasks are far more important than others. I wouldn’t want to upset my friends by forgetting a birthday, but there is sometimes a lot to do at certain times.

This time period in the employment equity world, is the period where your employment equity reporting and plans need to be submitted to the Department of Labour. The Employment Equity reports show the number of staff members who are African, Coloured, Indian, White and Foreign. The numbers are divided to show how many people are male and how many people are female within the racial groups. The reporting goes one step further to show the number of people in top management, senior management, middle management, junior management, semi skilled and unskilled. Your EEA2 also shows demographically the number of people who have been promoted, resigned or terminated during the reporting period. Sensitive salary information is provided via the EEA4 which shows the same information as your EEA2, but now includes the combined salary for the whole level, ie it will show that you have 29 African males in junior management and that the combined salary for all 29 employees is R2 958 000. Each individual person’s salary is not disclosed. This is required to compare the salaries broadly throughout the company. On a separate note, the EE act now talks of equal pay for work of equal value – the DOL may be looking closely at your EEA4 to see if you comply with the new amendments. We will cover this concept at our half day workshop.

We will also cover how to actually fill in and submit your reports, usually done online to the Department of Labour. Don’t forget to do this in advance of the 15th of January deadline! Also, don’t forget that the amendments to the employment equity act now require submissions to be done annually (previously it was every second year) if you are a designated employer.

If you to forget to submit these documents the DOL can impose hefty fines or in the case of incorrect information supplied the DOL can visit you and do a full audit on your company.

Read more…

Employment Equity and BEE Course

BEE/EE half day workshop
This course will cover the amended BEE codes, but will focus on employment equity in terms of the points calculation and all the reports that need to be submitted to the Department of Labour by 15 January 2016.

Venue: 435 Rugby Avenue, Ferndale
Date: 17th November 2015
Time: 8 30am for 9am until 1pm
Cost: R1 500 excl vat

How to win with dismissals and arbitration – 2 Days
Overview to the Labour Relations Act, with specific case studies of the dismissal and enquiry process, including CCMA cases. This course will prepare you to ensure that you do not have a procedurally incorrect or substantively unfair dismissals as they could be hugely costly if referred to the CCMA.

Venue: 435 Rugby Avenue, Ferndale
Date: 19th and 20th November 2015
Time: 8 30am for 9am until 5pm
Cost: R5 000 excl vat

Let our consultants save you time on B-BBEE.

Preferential Procurement – Save Time by using the BEE Procured database containing over 70 000 BEE Certificates. Managed Service: Our consultants can phone your suppliers for a BEE certificate – Managed Service.

Twitter - EconoBEEFacebook - EconoBEELinkdin - EconoBEEYouTube - EconoBEE

While there is demand for a B-BBEE Scorecard someone will be taking advantage, shouldn’t that someone be you…

Want us to manage your BEE Process – Managed Service.

Turnover below R10 million – find out how to get your BEE Exemption.

Is BEE procurement a pain? Sort it out quick and easy – BEE Procured.

Need a scorecard – produce one yourself – EconoBEE V4

EconoBEE Newsletter
13 October 2015

In this issue

  • Time to Abolish the Sector Codes
  • Employment Equity Reporting
  • Employment Equity and BEE Course

In other news

About EconoBEE

EconoBEE is an expert BEE consultancy. EconoBEE helps businesses Become BEE Compliant, prepare for verification, earn maximum BEE Points and ensure that they achieve the BEE Level they need to get more business.

Our services include BEE Management Systems, Training, EME Pack, Complete Managed Services, consulting and advisory and Procurement Solutions.

As leaders in the industry we are driven to help maintain and develop knowledge in the BEE industry.

Already have a BEE Certificate

Please send it to us and we will include it in our BEE Procured database.

Contact Us

Tel: 011 483 1190
Fax: 011 483 1195
Email: info@econobee.co.za
Web: www.econobee.co.za

Follow us

We know how useful our newsletters are but you needn’t wait for our newsletters – follow us on Twitter, connect with us on Facebook or stay well informed by reading our BEE Blog.

Forward to a friend

Know someone who might be interested in this email? Why not forward this email to them using [forward].

BEE Points = Happy Customers = Sustainable Business

Gavin and the EconoBEE Team

Executive summary of B-BBEE

Turnover below R10 million per annum – automatic BEE status


Turnover above R10 million per annum – you need a BEE Scorecard. Our workshops, scorecard tools, procurement manager or a complete managed services will be best for you.


Your time on your business, our time on your BEE status


Amended Codes preparation needs to begin immediately. Through our managed service prepare early and gain a competitive advantage.


10 Strategic Steps to B-BBEE!
 We have prepared an easy to follow guide “B-BBEE in 5 Minutes” and “Crash Course to BEE Verification” which explains BEE in a simple step by step approach.

HomeCorporate Profile – EconoBEE ServicesBEE ResourcesContact 

Copyright EconoBEE – Helping you and the Economy Grow . All Rights Reserved.

You may also like...