Transformation, Integration and Compliance Management Services
B-BBEE (Broad Base Black Economic Empowerment)
- B-BBEE Scorecard and strategy development, including scenario analysis
- B-BBEE Verification Audit Facilitation and representation
- B-BBEE Audit File Compilation
- Enterprise and Supplier Development
Procurement – Value chain analysis and strategy development and Empowering Supplier Verification.
Employment Equity (EE) and the Integration with Skills Development (SD) and B-BBEE (BEE)
- Internal audit according to the Employment Equity Codes of Good Practice
- Employment Equity Reporting
- Employment Equity Plan
- EE Committee set-up and documentation according to the EE act
- EE Training
- Legal and regulatory compliance
- Recruitment Policies and procedures
Skills Development and Integration with Employment Equity (EE) and B-BBEE (BEE)
- Internal Skills audit and competency analysis
- Workplace Skills Plan (WSP)
- Annual (ATR) and Quarterly Skills Training Report
- Skills Development strategy development
- Learnerships, apprenticeships and skills program development, implementation and sourcing
- Creating, training and management of Skills Development Committee and skills development facilitator (SDF)
- Disabilities Integration
- Funding via mandatory and discretionary grants together with several tax rebate allowances
BBBEE (Broad Base Black Economic Empowerment), Employment Equity (EE) and Skills Development (SD) transformation & development services
Why B-BBEE Consulting and Advisory?
Uncertainty about the Amended Codes. Expensive faults in time and money with the application of plans and movements with a few or no value. B-BBEE is not a once-off happening but a well-thought-out procedure to accomplish a great BEE Scorecard. The priority elements are the ownership, skills development as well as supplier and enterprise development. The B-BBEE Consulting is necessary for those who have the lack of expert B-BBEE knowledge by management and senior staff to effectively plan and implement B-BBEE actions. The B-BBEE plan or action must be combined with the work skills plan and Employment Equity Plan. No proper supplier management to ensure maximum points on the B-BBEE scorecard for procurement. A detailed preparation must be done for Skills Development and Supplier & Enterprise Development as well as the implementation of the movements to ensure an acceptable rating. The Consulting also prepared the evidence to ensure maximum points on the scorecard as well as the knowledge of BEE rating process to ensure points are given where transformation has taken place, together with proper representation of your company at verification audits.
Requirements for B-BBEE
To boost your chances of success in the South African Business Landscape, taking the time to work on your Broad-Based Black Economic Empowerment, B-BBEE (or BEE for short) a scorecard is strongly recommended. Not all companies face the same requirements for B-BBEE accreditation – they differ according to size and, to an extent, industry.
Let’s look at the B-BBEE requirements for companies of different sizes, highlighting the main differences in order to give you a clearer understanding of what you can expect if you choose to undergo verification.
Under B-BBEE legislation, companies are classified according to their annual turnover. The classification are as following: Exempt Micro Enterprises (EMEs) which are the smallest entities, with an annual turnover of R10 million or less, for as the Qualifying Small Enterprises (QSEs) are those with an annual turnover of larger than R10 million and up to R50 million, or Generic Enterprises (GENs) the largest entities, with an annual turnover in excess of R50 million .
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These figures were adjusted in 2013, when the B-BBEE Codes of Good Practice were revised to enhance the efficacy of B-BBEE in the transformation of South African society.
Thanks to the changes, many companies that would previously have been classified as QSEs are now deemed EMEs, and likewise QSEs that would have been marked as GENs. This makes B-BBEE compliance much easier for many people.
- EMEs are subject to relatively light requirements for B-BBEE accreditation. By default, all EMEs receive Level 4 B-BBEE status (positioning them in the middle of the scorecard, which has eight levels) upon declaring their turnover. To do this, they simply need to produce a sworn affidavit that is stamped and signed by a Commissioner of Oaths. Thereafter the level is adjusted based on their percentage of black ownership. EMEs with 51% black ownership is upgraded to Level 2 status, while EMEs with 100% black ownership is awarded Level 1 status, positioning them at the top of the B-BBEE rankings. EMEs are automatically classified as Empowering Suppliers, giving them access to the chain of preferential procurement.
- Like EMEs, QSEs that are able to show 51% or higher black ownership are classed as Level 2 B-BBEE contributors, while those with 100% black ownership receive Level 1 status. However, other QSEs are required to prove compliance with the five categories on the B-BBEE scorecard, and their level is then calculated. These categories are: ownership, management control, skills development, enterprise and supplier development, and socio-economic development. Of these categories, ownership is top priority, followed by either skills development or enterprise and supplier development. In order to be classified as an Empowering Supplier, QSEs must show that they meet certain other requirements relating to the sourcing of cost of sales, creation of jobs, relationships with EMEs, and other considerations.
- GENs, as the largest and therefore arguably most influential entities in the market, are subject to the most stringent B-BBEE requirements for accreditation. Like QSEs, they must show compliance with all of the categories on the scorecard, and they need to meet similar requirements when it comes to the cost of sales, job creation and so on.
Benefits of using Empoweright for BBBEE
Assign an experienced person and technologies backed by an experienced B-BBEE team to lead your business through the process from start to verification. Skills transfer to executive management. The Skills transfer on all the elements with particular staff and gathering of data to do the first pro-forma B-BBEE score. Determine short term measures via knowledge, technology and scenario analysis to increase pro-forma score and communicate to executive / senior management. Proceed to prepare for verification agency. Train organisation and responsible staff to compile information in the required format for verification. Constructing any substance over form arguments where required. Liaise with the verification agency to ensure maximum points on the scorecard. Provide a long-term plan to the executives to increase B-BBEE score covering all the elements. Provide a framework for monthly measuring and reporting. Ensure that skills development and Employment Equity strategies are in place and provide guidance and assistance with implementation of actions. Ensure that supplier and or procurement strategies are in place. Assistance and guidance with implementation.
Why Employment Equity (EE) Consulting and Advisory?
The determination of the Act is to defend workers and job seekers from unfair judgment. The Act also provides an outline for implementing confirmatory accomplishment. Employment Equity measures the percentage of designated employees (BEE employees) employed by the corporate. All business entities must obey to the Employment Equity Act. Businesses with less than fifty employees and below the annual turnover threshold are exempted from some of the Employment Equity Act requirements. Businesses with more than fifty employees and those who exceed the annual turnover threshold must report to the Department of Labor annually. All businesses reporting annually must have an Employment Equity Plan. The Employment Equity Plan will assist the owner of the company to achieve the requirements of Act and is necessary in terms of the Act and must ensure equal representation of employees from chosen groups by means of affirmative action measures. Non-conforming businesses may be fined up to 2% of their yearly turnover. Annual reporting to be used when calculating your B-BBEE scorecard –No reporting, no BEE score for EE plus possibility of fines from R1.5M to R2.7M. Your Employment Equity Plan and reporting are strategic tools that can be used together with your Workplace Skills plan to prepare your business and employees for future challenges. Ensure the elimination of all discriminating practices, procedures and policies from your business.
Consult with employees on all the policies, procedures and practices to identify barriers and decide on affirmative action measures to eliminate barriers. Also must have a properly constituted Employment Equity committee where the members represents all the occupational levels, race and gender as far as practically possible. An appointed Employment Equity Manager must happen.
A report annually - EEA2 Employee Profile & EEA4 Income Deferential. Members of the Employment Equity committee must receive training on the Employment Equity Act as well as their roles and responsibilities. The Employment Equity plan must have future yearly targets increasing the number of designated employees taking into consideration the national or regional demographics as well as specific affirmative action measures. The Employment Equity committee should meet at least every quarter to discuss the progress in terms of the plan and provide feedback to their constituencies. Minutes of all consultation sessions and meetings must be recorded in writing and kept on record. The Employment Equity plan must contain the EEA12 and EEA13 as prescribed by the DOL or the information contained in the prescribed forms must be part of the plan. The Employment Equity committee must have a constitution regulating the workings of the committee and the responsibilities of each member. Active communication with all employees with regard to all employment equity matters should be on an ongoing basis.
Benefits of using Empoweright for EE
An experienced and qualified person will be appointed to facilitate your Employment Equity process assisted by an experienced team. Facilitate the election / selection process for the members of the Employment Equity committee and Employment Equity manager. Information sheets and templates specially designed by Empoweright in line with all the EE act requirements. Train the Employment Equity members and Employment Equity manager. Facilitate the consultation process with the Employment Equity committee and possible affirmative action measures to eliminate any possible barriers. Analysing the result of the consultation process and developing an Employment Equity plan including targets and affirmative action measures for approval by management and the Employment Equity committee. Facilitate the approval process with the Employment Equity committee. Ensure that employees are on the correct occupational level - benefit for B-BBEE scorecard. Collect, analyse information and submit yearly EEA2 and EEA4 reports as required by the Act. Ensure that the Employment Equity plan is in line with the business's strategy as well as the Workplace Skills Plan. Assist with and provide onsite assistance during the Department of Labour audits.
Why Skills Development (SD) Consulting and Advisory?
Business entities with an annual payroll of R 500 000 plus must be registered for SDL and submit an annual work skills plan and annual training report to their respective Sector Education and Training Authority (SETA). Skills Development Levy of 1% of payroll to be paid to SARS. Workplace skills plan adding value to strategic planning process. Answer the question of what skills do we need and how to obtain the skills to assist in achieving the business's goals. Workplace skills plan is for all employees but is integral to an effective Employment Equity process and acceptable scoring under the Amended B-BBEE Act. Measurement of knowledge and skills of employees. Receive a Mandatory Grant of 20% of SDL levies paid over. Apply for Discretionary Grants of up to 49,5% of SDL levies paid over. Can apply for funded learnerships and apprenticeships with added benefit of Income Tax deductions. Develop designated employees (Employment Equity candidates) to become effective future employees. Approved WSP is a requirement of the Amended B-BBEE Act (no approved plan, no points under skills development). Proper training and development increase staff motivation, service levels and productivity. Assist in retention of employees.
Skills Development (SD) Requirements
Need to appoint an experienced Skills Development Facilitator. Register Skills Development Facilitator at the required SETA. Workplace Skills Plan and Annual Training Report must be submitted to the respective SETA by 30 April annually. Need to implement the training that was planned for the year. Businesses with more than 50 employees need to establish a skills development committee including union representation and consult on the development and implementation of the plan. Training must be in line with the NSDS3 and the scarce and critical skills of the SETA. Proper proof of training records
Benefits of using Empoweright for SD
- An experienced and qualified person will be appointed as your skills development facilitator assisted by an experienced skills development team
- Develop your workplace skills plan and annual training report taking into account the SETA guidelines and the needs of the business
- Collecting, completion and submission of required documentation saving you the time and effort and ensuring compliance
- Assist with the forming of a skills development committee
- Aligning your skills development with BBBEE requirements