Have you got learnerships and other BEE training programmes in place?

Learnership Tracking

All Companies/Organizations that have a wage bill (inclusive directors drawings) in excess of R500 000 per annum, must pay 1% of this wage bill as a training Levy (SDL). In order to get some of this money back, they need to have an qualified SDF – Skills Development Facilitator (either internal or external) to advice/assist them with various processes.

Why an Skills Development Facilitator?

  • Have you been getting your grants back from your SETA?
  • Is someone planning , monitoring  and ensuring that your training suits your BBBEE strategy ?
  • Have you got learnerships and other BEE training programmes in place?
If the answer no , then the chances are that you need help.
  • Your business is paying a monthly 1% skills  levy to the receiver of revenue .
  • This is 1% of your total payroll.
  • A portion thereof , 20% is allocated to the National Skills fund.
  • The balance is paid over to your  SETA – Sector  Education and Training authority.
  • The Seta is entitled to withold a small amount for administration costs.
  • You stand to recover at least 20% for basic compliancy and
  • another 50% by way of pre planned training grants from the SETA.

What is the purpose of a Workplace Skills Plan (WSP)? 

The Workplace Skills Plan serves to structure the type and amount of training for the year ahead, and is based on the skills needs of the organisation. A good WSP should consider current and future needs, taking into account gaps identified through a skills audit, the performance management system, succession planning initiatives, and any new process or technology changes planned for the year.

By when is the levy payable?

The levy must be paid to SARS not later than SEVEN days after the end of the month in respect of which the levy is payable, under cover of a SDL 201 return form.

The functions of a Skills Development Facilitator

  • Assist the employer and employees to develop a Workplace Skills Plan (WSP).
  • Submit the Workplace Skills Plan (WSP) to the relevant Seta.
  • Advise on the implementation of the Workplace Skills Plan.
  • Assist to draft an Annual Training Report (ATR) on the implementation of the Workplace Skills Plan.
  • Advice on the quality assurance requirements set by the Seta.
  • Act as a contact person between you and the Seta.
  • Serve as a resource for all aspects of skills development.

Companies/Organisations can either train their own internal person to become the represented SDF or contact any of our Top Students/Facilitators or Agents.

We at TRAINYOUCAN offer a free service where we create the opportunities for Companies / Organisations to get in contact directly with these qualified staff with no hidden cost. Simply another way that we support our learners and members of the group


Originally posted 2014-03-25 10:26:10. Republished by Blog Post Promoter

BBEE or Broad Based BEE

B-BBEE stands for Broad-Based Black Economic Empowerment.

The objective of B-BBEE is to ensure that the majority of South Africans, whom are defined as being black people (as per the definition in the Codes) across all socio economic levels, are able to participate in the positive benefits of empowerment.

The concept of Broad Based BEE was introduced by the Codes of the Practice. 7 B-BBEE Elements are now used to measure a company’s commitment to transformation, as follows:

1. Ownership
2. Management and control
3. Employment equity
4. Skills development
5. Preferential procurement
6. Enterprise development
7. Socio economic development

While the term ‘BEE’ is often still referred to, ‘BEE’ actually no longer exists, and ‘B-BBEE’ is actually meant.

BEE codes of Good Practice

The B-BBEE Codes of Good Practice (“the Codes”) can be seen as the BEE rule book. Gazetted in February 2007, the Codes have added certainty to the BEE landscape and provide universal standards for the implementation and measurement of BEE initiatives, with the view of providing consistency, transparency and clear direction on BEE.

Through the use of a BEE Scorecard, the Codes have thus seen BEE become an objective discipline with quantifiable and defined criteria and rules. The Codes have facilitated a move away from BEE being measured only in terms of the original ‘narrow’ BEE criteria towards a more ‘Broad-Based’ approach to empowerment, now incorporating 7 broad based BEE elements.

Definition of Black People or BEE purpose

The Codes define “Black People” as
African, Indian, and Coloured (including Chinese) People
who are citizens of South Africa by:

      birth; or


      descent; or


      naturalization prior to the commencement date of the Interim Constitution (1993); or


    naturalization after the commencement date of the Interim Constitution (1993), but were prevented from becoming naturalized by Apartheid.

White-owned business be BEE Complaint

It is entirely a misconception that in order to be BEE compliant a black shareholder needs to be place. While historically the focus of BEE has been on the Ownership element, with the advent of the Codes and Broad-Based BEE or B-BBEE, the Ownership element is just 1 of 7 the BEE elements.

The size of your business will determine the extent to which the Ownership element will be relevant.

If you are an Exempted Micro Enterprise (i.e. an entity with a turnover of below R5 million per annum) then you are exempt from the provisions of BEE, and will deemed to have a Level 4 BEE status, without changing any aspects of your including, including Ownership.

If you are a Qualifying Small Enterprise (i.e. an entity with a turnover of between R5 million – R35 million) then the QSE Scorecard will be applicable. In terms of the QSE Scorecard you may select any 4 of the 7 BEE elements, each of which will count 25 points towards your BEE Scorecard. Accordingly you may validly leave out 3 BEE elements, including the Ownership element, should you so elect, and will still be fully BEE compliant, should you score points under your 4 selected BEE elements.

If you are a Generic Enterprise (i.e. an entity with a turnover of above R35 million per annum) the Generic Scorecard will be applicable. In terms of the Generic Scorecard all 7 of the BEE elements will be used in determining your overall BEE Score, including the Ownership element. The Ownership element counts for 20 out of 100 points. It is not however compulsory to comply with each element, including the ownership element, and therefore should you not wish to secure black shareholding within your business you will simply not earn any points under the Ownership element. Should you score relatively well in relation to the rest of the Scorecard (where the 80 remaining points lie), it is entirely possible to still score well overall and obtain a decent BEE status level.

What is the prosition of Start-up Enterprises and BEE

Start-up enterprises are measurable as an Exempted Micro Enterprises (“EMEs”) for the first year following their formation or incorporation, regardless of the expected total revenue of the start-up.

Therefore Start-up enterprises are automatically deemed to be:
Level 3 contributors if they are more than 50% owned by black persons.
Level 4 contributors if they are less than 50% owned by black persons.

In instances where such start-up enterprises tender for any contract with a value higher than R5 million but less than R35 million, they have to comply with the QSE scorecard.

In instances where such start-up entities tender for contracts with a value above R35million they have to comply with the generic scorecard.

How does BEE apply to the Public Sector

BEE is applicable to public sector entities, both in terms of:
1. how each public sector entity is rated internally for BEE purposes and accordingly the BEE Status Level that that specific public sector entity has achieved, and
2. how public sector entities must utilise the principles of BEE to measure third party suppliers for procurement, licenses and similar activities.
1. Internal BEE Measurement
S3 of Code Series 000 Statement 000 of the Codes provides that the various public entities are measurable under the Codes.

Code Series 000 Statement 004 specifies that Public Sector Entities are to be measured in accordance with the Scorecard for Specialised Entities. The Scorecard for Specialised Entities is essentially an adjusted Scorecard measuring 6 BEE elements and excluding ownership.
2. BEE principles in relation to third party suppliers

S10 of the B-BBEE Act requires organs of state to apply the Codes when entering into decisions affecting:
• Procurement;
• Licensing and concessions
• public private partnerships (PPP’s);
• The sale of state-owned entities.
Procurement Scoring System
Public sector procurement is governed by the Preferential Procurement Policy Framework Act, 2000 (“the PPPFA”).
The PPPFA provides a scoring system for assessing suppliers in relation to the award of public sector procurement. The score achieved by the supplier is essentially calculated in accordance with 2 components:
1. General Factors (eg. price, delivery time, quality etc.); and
2. BEE Factors
Until recently there has been no alignment between the PPPFA and the BEE Codes. The BEE Factors considered have been variable at the discretion of the body that issued the tender. Historically the BEE Factors that have been primarily utilised have been the black ownership and management credentials of the supplier
As of 7 December 2011 however, new Regulations to the PPPFA will come into effect requiring that public sector enterprises must utilise the supplier’s BEE Scorecard in calculating the score achieved in relation to the BEE Factors.
The value of the tender will affect the allocation of points between the General Factors and the BEE Factors, as follows:
For tenders with a value of below R1 Million:
• 80 points are allocated towards the General Factors; and
• 20 points are allocated towards the BEE Factors.
For tenders with a value of above R1 Million:
• 90 points are allocated towards the General Factors; and
• 10 points are allocated towards the BEE Factors.
The number of points achieved under the BEE Factors component will be calculated in accordance with the BEE Status Level of a supplier, as determined by their BEE Scorecard, as follows:

Use learnerships to up your companys BEE scorecard

Learnership Tracking

‘The Department of Trade and Industry is planning measures to incentivise manufacturers to enter into black economic empowerment (BEE) deals, acting director-general Garth Strachan told Parliament.’ This is according to an article published by the Business Day earlier this week. The reason? According to Strachan, the sector hasn’t done enough to implement BEE measures in the industry. If your company isn’t part of the manufacturing sector, it doesn’t mean you don’t have to implement plans to up your BEE scorecard. Here’s one easy way to do just that.
Skills development is one of the key features of the BEE Act. But skill development doesn’t only apply to your employees, you can also empower the industry by introducing skills development learnerships at work.

And the best part is, these learnerships will help you with your BEE scorecard.

Use learnerships to help you to achieve BEE status

Skills development contributes 20 points to the scorecard. These points are split between the level of investment in skills development as a percentage of payroll, as well as people employed through learnerships and internships

But before you set up a learnership in your company to enhance your BEE scorecard make sure it complies with these six criteria.

Fulfil these six learnership criteria if you’re looking for a boost in your BEE score

According to the Practical Guide to Human Resources Management, your company’s learnership programme must:

      Consist of a structured learning component;


      Include practical work experience;


      Be registered through a SETA;


      Be governed by a learnership agreement;


      Lead to a SAQA NQF registered qualification; and


    Relate to an occupation.

If it meets these criteria, you can use your company’s learnership programme to add an additional 20 points to your BEE scorecard as well as ensure you have a handful of well-trained recruits to pick from when hiring.

Amended BEE Codes – October 2013

EconoBEE is giving a cautious welcome to the new BEE codes which were gazetted by the dti minister, Dr Rob Davies on 11th October 2013. The codes will replace the existing BEE codes of Good Practice and must be followed within a year.

The codes contain a mixture of good aspects and some complexities:

They are fairly similar to the existing codes, although some weightings and names of some elements have been changed.

Instead of 7 elements, we now use 5. However they still contain mostly the same indicators as before.

The 5 elements are:

This has not changed significantly. The targets are still 25%, and weighting is 25 points. We are encouraged that there are some clarifications around how to score points.

Management Control:
The codes previously included 2 elements: management control and employment equity. Both elements have been consolidated into a single element, but with substantially the same indicators. Previously management control and employment equity were worth 29 points combined. The new combined element is only worth 19 points. In recent years employment equity has improved dramatically. Points are the incentive to businesses to become compliant. By dropping the points available and making the weightings more onerous could rebound in that companies may make less effort in this important activity.

Skills Development:
Skills has increased from 15 points to 25 showing the importance of skills development in the economy. Some targets have increased: Target spend is now 6% of payroll, instead of 3%, but more points can be earned than ever before and we see this as a positive move.

Enterprise and Supplier Development:
The current codes speak of two elements: Preferential Procurement and also Enterprise Development. The new element Enterprise and Supplier Development (E and SD) is a simple combination of both elements. The two previously were worth 35 points. This has now increased to 44 points. A slight concern is it is now more difficult to reach targets on procurement in that the minister has defined “empowering suppliers” which is a more complex definition than having a simple recognition level. It implies that even if a company does reach a compliant level, it may not be sufficient to help its customers earn BEE points. The whole driver behind BEE compliance is that a company asks its suppliers for BEE certificates in order to earn points and therefore companies obtain certificates to satisfy their customers. If a company cannot meet the requirement of being an “empowering supplier”, even if it can reach a BEE level, it may discourage that company from continuing its transformation journey.

One of the indicators on the new element E and SD is for a company to spend 40% of its procurement from empowering suppliers that are at least 51% black owned. We know that there is a distinct lack of black industrialists and this target is going to be very difficult to achieve. Clever businesses will start the process now of identifying black businesses who can supply substantial values of goods and services. Since the new codes give a one year transitional period, there is not too much time. From a black industrialist’s viewpoint, this is an excellent opportunity to grow his business. If procurement works, BEE will pretty much have succeeded.

Socio-economic Development:
The last of the five elements is unchanged at 5 points.

Read more…