{"id":252653,"date":"2018-06-24T13:02:50","date_gmt":"2018-06-24T11:02:50","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=252653"},"modified":"2018-06-22T17:41:56","modified_gmt":"2018-06-22T15:41:56","slug":"these-are-the-changed-bee-rules-you-need-to-know-about-including-the-new-youth-employment-service","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/252653\/these-are-the-changed-bee-rules-you-need-to-know-about-including-the-new-youth-employment-service\/","title":{"rendered":"These are the changed BEE rules you need to know about &#8211; including the new Youth Employment Service"},"content":{"rendered":"<p>The Department of Trade and Industry recently published proposed amendments to the generic Broad-Based Black Economic Empowerment (BBBEE) Codes of Good Practice.<\/p>\n<p>Some of the biggest changes include automatic recognition levels for large black-owned companies, and the introduction of a new Youth Employment Service.<\/p>\n<p>Erika Holmes, partner &amp; head of B-BBEE at Shepstone explained these and other changes below.<\/p>\n<p><strong>Automatic recognition for large black-owned companies<\/strong><\/p>\n<p>Automatic recognition levels will now be given to 51% and 100% black-owned large entities with annual turnovers exceeding R50 million &#8211; exactly as\u00a0Exempted Micro Enterprises (EME\u2019s) and\u00a0Qualifying Smaller Enterprises (QSE\u2019s) are currently given.<\/p>\n<p>Effectively this means that if a company is 51% black-owned it will qualify for automatic level 2 BEE status, and if it is 100% black-owned it will qualify for automatic level 1 BEE status.<\/p>\n<p><strong>Youth Employment Service<\/strong><\/p>\n<p>A new concept of \u201cYouth Employment Service \/ Y.E.S\u201d companies will be created, entitling such an entity to move up 1 or 2 BEE recognition levels.<\/p>\n<p>To qualify, the entity must:<\/p>\n<ul>\n<li>Meet the 40% sub-minimums for each priority element or meet an average of 50% (if a generic ompany) across the 3 priority elements or an average of 40% (if a QSE) in 2 of the 3 priority elements including ownership; and<\/li>\n<li>Improve its BEE score each year; and<\/li>\n<li>Score full points on the Skills Development Scorecard (if a generic); and<\/li>\n<li>Give 12-month full-time employment contracts to such number of Black youth (18 \u2013 35 years) as determined by the higher of:\n<ul>\n<li>1.5% of last year\u2019s headcount;<\/li>\n<li>1.5% of average NPAT (net profit after tax) in last 3 years converted to headcount by dividing by R55,000; or<\/li>\n<li>A target set in a table based on annual revenue or headcount.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&#8220;To move up 1 BEE level, the Y.E.S company must meet the target and achieve 2.5% absorption rate.\u00a0To move up 2 BEE levels, the Y.E.S company must meet double the target and achieve 5% absorption rate,&#8221; said\u00a0Holmes.<\/p>\n<p>She added that the amended definition of &#8216;absorption&#8217; now requires that the entity secure a &#8216;long-term&#8217; contract of employment for the individual, which can be with any employer but must be permanent employment &#8216;until his mandatory date of retirement&#8217;, although the statutory LRA provisions would obviously still apply, she said.<\/p>\n<p><strong>Procurement<\/strong><\/p>\n<p>On the procurement side, Code 400 has been amended as follows:<\/p>\n<ul>\n<li>The scores for procuring from Empowering Supplier EME\u2019s and QSE\u2019s have been combined into one score, reducing the max points from a total of 7 to 5 and increasing the target from 15% to 25%;<\/li>\n<li>Increasing the points obtainable from procuring from 51% black-owned suppliers from 9 to 11 and increasing the target from 40% to 50%;<\/li>\n<li>The amended definition schedule will finally clarify that \u201cat least 30% black-female owned\u201d means \u201cat least\u201d and not \u201cmore than\u201d as it is currently defined.\u00a0 The points and targets for this element are unchanged.<\/li>\n<\/ul>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/06\/procurement.png\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-252665 aligncenter\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/06\/procurement.png\" alt=\"\" width=\"602\" height=\"971\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/06\/procurement.png 602w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2018\/06\/procurement-186x300.png 186w\" sizes=\"auto, (max-width: 602px) 100vw, 602px\" \/><\/a><\/p>\n<hr \/>\n<p><strong>Read:\u00a0<a href=\"https:\/\/businesstech.co.za\/news\/banking\/252621\/south-africa-has-experienced-a-disturbingly-high-number-of-data-breaches-in-the-past-few-months\/\" target=\"_blank\" rel=\"noopener\">South Africa has experienced a disturbingly high number of data breaches in the past few months<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Department of Trade and Industry recently published proposed amendments to the generic Broad-Based Black Economic Empowerment Codes of Good Practice.<\/p>\n","protected":false},"author":10,"featured_media":40320,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[26],"class_list":["post-252653","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/252653","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=252653"}],"version-history":[{"count":12,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/252653\/revisions"}],"predecessor-version":[{"id":253703,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/252653\/revisions\/253703"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/40320"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=252653"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=252653"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=252653"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}