Until now, most companies’ focus in terms of what B-BBEE (Broad-Based Black Economic Empowerment) actually is was the matter of black ownership and management. Black Economic empowerment (BEE), even being broad-based, has still remained largely focused on management as opposed to overall employment. However, recently proposed amendments to the B-BBEE Codes of Good Practice such as ‘YES’ have been published with a view towards skills development for the youth and an increased focus on job placement and job readiness through training and development.
What is ‘YES’?
‘YES’ stands for Youth Employment Service, and this is an initiative that aims to improve B-BBEE levels through encouraging businesses to aid in providing employment opportunities for South African youth. Specifically, this encouragement is to be provided by improving companies’ B-BBEE scorecard levels if they meet certain targets around work experience and employment absorption/integration.
One way in which this is initiative is foreseen to take place is through the creation of new starter positions in the form of traineeships orinternships. In this way the youth are given the opportunity to gain real workplace experience and skills, thereafter also having the opportunity to be integrated into the workforce permanently as trained employees.
Is black ownership still important?
Black ownership and management as a means of economic empowerment is indeed still an important part of what B-BBEE is. To this end the amendments intend to provide black-owned businesses with generic Automatic Recognition Levels (ARLs). According to these ARLs a generic business entity with 100% black-ownership or one with 51% black ownership will be recognised as B-BBEE Level 1 and B-BBEE Level 2, respectively.
An article published by SERR Synergy explains these factors in greater detail. As experts in the field of legal compliance and explaining the B-BBEE scorecard and its levels, they are the ideal source to contact for information and assistance with your business’ needs regarding ‘YES’ and the amendments that came with it.