Several interpretation uncertainties have been addressed in a statement issued by the Department of Trade and Industry (dti). “This clarification,” says John Botha: COO of Global Business Solutions, “will go a long way towards increasing the uptake of youth into workplaces which is critical given the youth unemployment realities.”
Specifically:
- The requirement of measured entities (MEs) to achieve a verification score that is equivalent to either 40% of the priority element score or an average of 50% across these MEs still applies. “However,” says Botha, “the clarification provides that this MUST still be achieved in the actual year of verification that the YES initiative is implemented by the ME.”
- The requirement to maintain or improve the ME’s BBBEE level remains. “The ME’s BBBEE status level, which was obtained in the first year of participating in YES, will set the baseline for the status level to be referred to in the second and all subsequent years of YES participation,” continues Botha. This means that the ME should maintain or improve its performance against the elements in the overall scorecard as before.
- The target absorption of YES youth in the first year will not be verified for BBBEE recognition in that year but rather when absorption takes place in the following measurement period. It will be measured at the time of BBBEE verification
- If an ME has met the uptake requirements of YES but NOT the absorption targets, as a result of the workplace experience still taking place, the ME can provide evidence of its commitment to absorb. “The ME must provide verification evidence to the B-BBEE Verification Agency (VA) within one month once absorption takes place,” says Botha.
- In addition, absorption has been extended to include black youth who establish their own entity with the ME providing support
- In the event that YES youth do not complete a YES programme, a 5% variation from the calculated target headcount will be acceptable for the ME to still receive YES recognition. If the YES youth fall off before eight months the ME has one month to replace the said youth.
YES employees are entitled to four consecutive months of maternity leave and remain employed whilst on maternity leave. The ME is not required to extend the workplace experience and employment contract by the period taken for maternity leave. The YES 12-“month workplace experience is not a Learnership and the salaries paid to the youth cannot be claimed under Skills Development/Training as is the case with B, C and D programmes
“These clarifications apply to all BEE sector codes under s9(1),” concludes Botha. “This includes the Transport Sector with the exception that paragraphs 2.1, 2.2 and 2.3 of the YES initiative Gazette are not applicable to MEs in Transport.”
Download the DTI notice here