The Youth Employment Services amendments to the B-BBEE Codes were gazetted on 28 August 2018 and Practice Guide 1 on 12 October 2018. Click here to download a presentation summarising the B-BBEE benefits and costs.

YES is a partnership with government, labour and civil society and aims to provide 1 million South Africans between 18 and 35 years with paid work experience over the next three years. This population group makes up 28% of South Africa’s population, and youth unemployment is about 36%. The YES Programme assists youth as they will now have a CV which shows that they have work experience and possibly a reference letter. This will assist with future employment.

The amendments will have significant benefits to organisations that integrate youth employment into their workforce and B-BBBEE strategies.

The Youth Employment Services focus on three areas where employment creation efforts are likely to have the greatest benefits and most immediate impacts, including:

  1. The creation of new job opportunities in existing firms intended specifically for the youth
  2. Promoting the capacity of SMME’s
  3. Creating SMME’s through creative value chain initiatives and knowledge spill-over in collaboration with industry leaders

It is important to note that organisations must appoint youth on a Fixed Term Contract of at least 12 months, provide quality work experience in a new position, and comply with the National Minimum Wage. They must also communicate clearly with the individuals concerned whether their contracts will be renewed or if permanent placements are available.

When the targets are met, the Yout Employment Services initiative will help companies increase their overall B-BBEE score as summarised in the table below.

B-BBEE Recognition
Achieve YES Target and 2.5% absorption Increase of 1 level on B-BBEE certificate
Achieve 1.5 x YES Target and 5% absorption Increase of 1 level on B-BBEE certificate + 3 bonus points
Achieve 2 x YES Target and 5% absorption Increase of 2 levels on B-BBEE certificate

If you have any questions related to this article or other B-BBEE matters, please contact me at [email protected] 

Richard Ryding