25Nov, 2020
Has the ruling by the Supreme Court of Appeal in relation to the PPPFA changed B-BBEE ?
EconoBEE was recently asked to participate in a live, televised interview by eNCA in relation to the Supreme Court of Appeal’s ruling on the PPPFA (preferential procurement policy framework act). Headlines such as “Court rules BEE pre-disqualification in public procurement invalid, unconstitutional” got many interested parties talking about B-BBEE. Our Legal Director Dr Muriel Mushariwa, who is one of the top minds in the country when it comes to B-BBEE and lectures at Wits University on this and other transformational subjects, provided a detailed insight into this topic which you can view by clicking here EconoBEE has been at the forefront of guiding some of South Africa’s largest generic firms to obtain their B-BBEE goals, and we are extremely adept at putting together the best, most cost-effective, B-BBEE solutions for your business. Why not give us, at EconoBEE, a call on 011 483 1190 or email us and let us help simplify and expedite your transformation journey!
10Nov, 2020
B-BBEE Fronting Indicators: Are you committing fraud?
Fronting is a form of fraudulent misrepresentation in an attempt to circumvent the BEE codes. There are various forms of fronting indicators listed in legislation. In consulting, we have come across some glaring examples which we would like to point out:
- The black people identified by an enterprise as its shareholders, executives or management are unaware or uncertain of their role within the enterprise.
- The black people identified by an enterprise as its shareholders, executives or management have roles of responsibility that differ significantly from those of their non-black peers.
- The black people who serve in executive or management positions in an enterprise are paid significantly lower than the market norm, unless all executives or management of this enterprise are paid at a similar level.
27Oct, 2020
Beneficiaries of B-BBEE
B-BBEE News! A recent article by Business Tech, regarding South African companies trying to dodge BEE laws, illustrates how critical it is to understand and adhere fully to the B-BBEE Act. Zodwa Ntuli, the current B-BBEE commissioner, said that 83% of complaints received since 2016 were related to fronting. The mining, transport, construction and engineering sectors account for most of the fronting complaints. “We want the public to know about these cases of fronting and misrepresentation of B-BBEE status to raise awareness of these practices that are detrimental to transformation and criminal in nature, with a view to identify and prevent them from occurring in our economy. Any person convicted of fronting may be imprisoned for up to 10 years and an entity may be fined up to 10% of their annual turnover, in accordance with Section 130 of the B-BBEE Act. In other recent news reports, individuals have recently been charged with fraud from incorrectly stating their race. We have also noticed that there seems to be some confusion regarding the definition of B-BBEE beneficiaries: Who are the beneficiaries of B-BBEE? In terms of the Codes of Good Practice a Black person is a generic term which means African, Coloureds and Indians who
- Are citizens of the Republic of South Africa by birth or decent, or
- Became citizens of the Republic of South Africa by naturalisation
12Oct, 2020
ALIGNMENT OF WORKPLACE POLICIES WITH EMPLOYMENT EQUITY ACT
ALIGNMENT OF WORKPLACE POLICIES WITH EMPLOYMENT EQUITY ACT
On the 20th of August 2020, the Minister of Employment and Labour published the Draft Code of Good Practice on the Prevention and Elimination of Violence and Harassment in the World of Work (Draft Code) for public comment. The deadline for public comment is the 20th of October 2020.The Draft Code is intended to address the prevention, elimination and management of violence and harassment that pervades the world of work, and provides for:
- Treatment, care and support
- Programmes, training and awareness
- Procedures in managing violence and harassment
- Monitoring and evaluation
The objectives of the Draft Code are to:
- Provide a framework and clarity on the interpretation and implementation of the Employment Equity Act 55 of 1998, as amended, pertaining to the prevention and elimination of violence and harassment including gender-based violence and harassment
- Provide guidelines to employers, workers, employer organisations and unions on the prevention and elimination of violence and harassment, including gender-based violence and harassment as a form of unfair discrimination.
- Guide human resource policies and practices related to violence and harassment, including gender-based violence and harassment that are based on equity, dignity, health and safety and non-discrimination.
This legislation is likely to become law and it is important for designated and non-designated employers to align their workplace policies to the Employment Equity Act. Should the draft become law, it is imperative that all issues outlined are managed proactively rather than reactively.
Are you unsure about the validity of your Employment Equity Plan, considering the new Draft Amendments? Why not give us, at EconoBEE, a call on 011 483 1190 and let us handle all your Employment Equity needs and ensure that you are inspection ready all year round!
Online Workshops
EconoBEE is hosting online workshops for both our existing clients, and for anyone interested in attending. For our BEE Managed Services clients, all BEE half-day workshops are free and our full-day workshops are half-priced! Please see our website for more information on our workshops.
To book, or to tailor-make a workshop for your company, please email info@econobee.co.za or call 011 483 1190.
29Sep, 2020
Indicative Profit Margin Calculation
| INDICATIVE PROFIT MARGIN CALCULATION The indicative profit margin is applied when a measured entity has made less than a quarter of the industry norm. Enterprise development, supplier development as well as socio-economic development are based on the percentage of either a NPAT or an indicative profit margin where a measured entity has made less than 25% of the industry. The three above mentioned sub-elements constitute 24 points of the generic scorecard. SANAS issued a clarification on the 30th of July 2020 in terms of the steps to be followed when calculating the indicative profit margin, and this has prompted measured entities, BEE consultants as well as verification agencies to start querying how the steps must be followed in order to calculate the indicative profit margin. Based on our interaction with several verification agencies, SANAS as well as the DTI, it is prudent that we clarify this to you as our valued client as the answer is not straight forward. Why not give us, at EconoBEE, a call on 011 483 1190 so that we can explain and help you with queries such as: “When does a measured entity apply the average NPAT?” Or “When must the targets be turnover based etc?” or any other B-BBEE related matter!! ONLINE WORKSHOPS EconoBEE is hosting online workshops for both our existing clients and for anyone interested in attending. For our BEE Managed Services clients, all BEE half-day workshops are free and our full-day workshops are half-priced! |
15Sep, 2020
Getting the most out of your skills development spend!
Skills development is a priority element of the B-BBEE scorecard that requires a measured entity to spend on the upskilling of its staff/external people. Due to its nature, a measured entity needs to spend in order to earn points with regards to the skills development element and, as a priority element, the measured entity needs to meet 40% of the points available in order not be discounted one level. The 2013 Amended Codes of Good Practice introduced limitations of some of the spends on the codes with respect to Category F and Category G skills spend as well as any legitimate costs (indirect spend). Category F & G refer to informal and workplace learning programmes under the learning programmes matrix and is capped at 25% for COGP and 15% for ICT of the total skills development cost. Legitimate training (indirect spend) costs refer to costs such as accommodation, catering and travelling (non-exhaustive) costs which cannot exceed more than 15% of the total skills development spend. For big companies to spend 6% of the leviable amount is next to impossible, especially in the current harsh economic circumstances due to COVID however, EconoBEE has found a solution to this problem. Ask us HOW? Why not give us, at EconoBEE, a call on 011 483 1190 and let us handle all your Skills Development needs and ensure that you are getting the most out of your skills development spend! Online Workshops EconoBEE is hosting online workshops for both our existing clients and for anyone interested in attending. For our BEE Managed Services clients, all BEE half-day workshops are free and our full-day workshops are half-priced! Please see our website for more information on our workshops. To book, or to tailor-make a workshop for your company, please email info@econobee.co.za or call 011 483 1190.
1Sep, 2020
When an Inspector Calls!
With the Department of Labour’s new stern approach to transformation, it is highly likely that the number of inspections will increase dramatically! These inspections will be focused on your company’s Employment Equity Plans and, specifically, whether or not the company has been implementing their plan as promised. These Employment Equity Plans should consist of the following:
- A strategy to rectify the lack of representation of the Designated Groups.
- Timelines for when this transformation will be put into effect.
- EEA13
- EEA2 and EEA4 for the past five years and proof of submission
- Minutes of the employment equity committee meetings
- Register of the employment equity committee meetings
- A letter confirming which senior manager is in charge of employment equity
18Aug, 2020
What Economic Transformation actually happened in South Africa in 2019?
The B-BBEE Commission recently released the annual B-BBEE trends report for the 2019 calendar year. The purpose of the report is to assist the B-BBEE Commission to determine how organs of state, public and private entities in South Africa are performing against the generic and sector Codes of Good Practice. The report assesses ownership, management control, skills development, enterprise and supplier development and socio-economic development. The report is based on compliance reports received from 150 companies listed on the JSE, 43 organs of state and 5,818 other entities whose B-BBEE certificates were uploaded onto the B-BBEE Commission’s portal.
- Black ownership has increased from 25% in 2018 to 29% in 2019. In 2018, 100% black-owned JSE listed entities was 1.2% but in 2019 this has now increased to 3.3%.
- The % of black South Africans holding Directorships has decreased from 45% in 2018 to 39% in 2019.
- The % of black South Africans holding Directorships in the JSE has increased from 38.3% in 2018 to 43.6% in 2019.
- The B-BBEE Commission has mentioned invoking the relevant penalties of the JSE Listing Requirements if these are not met.
- The B-BBEE Commission has noted that, although black ownership has increased in the 2017 – 2019 period, management control has not increased accordingly which indicates that black people are not involved in the control and core operations of businesses.
- The three least performing sectors on ownership in 2018 were AgriBEE (11.19%), MAC (19.55%) and financial (21.64%), with construction (48.03%), transport (40.53%) and forestry (33.66%) showing relatively good progress.
- Contributions towards skills development, enterprise and supplier development have decreased in 2019.
- Black people continue benefiting from bursaries, partnerships and incubation opportunities under these elements, however, absorption into a job or sustainable supply chain remains a challenge.
- The report shows that 49.3% (50.9% – 2018) of JSE listed entities are at level 4 and higher, while 50.7% (44.5% – 2018) entities are between level 5 and non-compliant B-BBEE status.
- The B-BBEE Commission reiterates its concern about the low level of reporting and the overall slow pace of economic transformation. To address this, the B-BBEE Commission has started conducting site visits on the reports submitted to verify the accuracy of the reports submitted and to identify best practices to share with other measured entities. Also, preparation to refer measured entities that failed to submit reports are underway as their conduct is not only a violation of the B-BBEE Act, but enables the harbouring of fronting arrangements.
4Aug, 2020
Read about the new Draft Amendments to Employment Equity!
Quoting slow progress since the introduction of Employment Equity regulations, it seems the Department of Labour will be introducing a stern approach to driving transformation. EconoBEE has ascertained the following:
- Numerical targets will be set by the department and these will be specific to your economic sector. Previously, companies set numerical targets themselves.
- The draft does provide relief for certain companies in that employers with less than 50 employees will no longer be required to report annually, no matter what the turnover is.
- An Employment Equity Certificate of Compliance will be required if you are bidding for government contracts.
22Jul, 2020
Earn more points on skills development!
Earn more points on skills development: Absorption Bonus points under Skills Development Employers can earn 5 bonus points under skills development through the absorption of learners. In the 2013 Amended Codes of Good Practice (COGP) absorption was defined as the following: Absorption: means a measure of the Measured Entity’s ability to successfully secure formal permanent or long-term contract employment for the learner, or to assist the learner to proceed with further education and training. In May 2019 the Amended COGP changed the absorption definition: Absorption: means a measure of the Measured Entity’s ability to successfully secure a long-term contract of employment for Employee, Learner, Intern or Apprentice. A long -term contract is defined as a legal agreement between an individual and an entity that this individual would work for until his or her mandatory date of retirement. The target for absorption is 100% to get full points, alternatively, a pro-rata calculation is used. The target is based on 5% of your headcount for learnerships. In 2013 it was easier to get the bonus points because the following would happen: 1. Provide the learner with a fixed-term contract and get the points or 2. Provide the learner with another learnership which is a continuation of the previous one. Now with the new definition, it is not as easy to get the bonus points on skills development, however, at Econoserv, we have investigated this and found a cost-effective solution which is also B-BBEE complaint. To find out more please get in contact with us on 011 483 1190 or email info@econobee.co.za Online Workshops EconoBEE is hosting online workshops for our clients. For our BEE MS clients, all BEE half-day workshops are free and our full-day workshops are half priced! Please have a look through the following upcoming workshops: Title: Full-Day B-BBEE Workshop Date: 30 July 2020; 20 Aug 2020 Duration: 09h00 – 16h00 Price: R3 700.00 excl VAT Title: Half-Day B-BBEE Workshop Date: 04 Aug 2020; 13 Aug 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: Construction Sector Code Workshop Date: 27 Aug 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: Media, Advertising and Communications Sector Code Workshop Date: 18 Aug 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: 2-Hour YES Workshop Date: 25 Aug 2020 Duration: 09h00 – 11h00 Price: R650.00 excl VAT Title: Property Sector Code Workshop Date: 23 July 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: Information, Communications and Technology Sector Code Workshop Date: 28 July 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: Transport Sector Code Workshop Date: 11 August 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT To book, or to tailor make a workshop for your company, please email info@econobee.co.za or call 011 483 1190
1Jul, 2020
Do EAP targets apply to disabled skills spend in ICT sector codes?
In terms of Clause 2.3 of the Gazette No: 40407 it states that ‘’The compliance targets for 2.11.1,2.1.1.2, 2.1.2.1, 2.1.2.2 and 2.13 of the Skills Development Scorecard are based on the overall demographic representation of Black people as defined in the Employment Equity Act. For scoring purposes, the targets should be further broken down into specific criteria according to the different race sub-groups within the definition of Black in accordance with the Employment Equity Act requirement on equitable representation and weighted accordingly.” According to the above ICT sector codes clause, it would seem that EAP targets do apply to disabled skills spend. This clause is problematic, firstly with respect to how you calculate your skills spend as well as the fact that by virtue of being disabled, this group already falls under the designated group. We at EconoBEE have a solution to this “problem’’. At EconoBEE, we investigated this question with our various partners in transformation, including the BEE commission and several SANAS approved verification agencies as well as the ICT Sector Council, to get clarity on how to advise clients to calculate their skills spend. If you have any questions or queries in relation to the above, please feel free to contact us on 011 483 1190 or please email info@econobee.co.za Online Workshops EconoBEE is hosting online workshops for our clients. For our BEE MS clients, all BEE half-day workshops are free and our full-day workshops are half priced! Please have a look through the following upcoming workshops: Title: Full-Day B-BBEE Workshop Date: 30 July 2020; 20 Aug 2020 Duration: 09h00 – 16h00 Price: R3 700.00 excl VAT Title: Half-Day B-BBEE Workshop Date: 07 July 2020; 04 Aug 2020; 13 Aug 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: Construction Sector Code Workshop Date: 16 July 2020; 27 Aug 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: Media, Advertising and Communications Sector Code Workshop Date: 18 Aug 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: 2-Hour YES Workshop Date: 14 July 2020, 25 Aug 2020 Duration: 09h00 – 11h00 Price: R650.00 excl VAT Title: Mining Sector Code Workshop Date: 21 July 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: Property Sector Code Workshop Date: 23 July 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: Information, Communications and Technology Sector Code Workshop Date: 28 July 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT Title: Transport Sector Code Workshop Date: 11 August 2020 Duration: 09h00 – 13h00 Price: R1 550.00 excl VAT To book, or to tailor make a workshop for your company, please email info@econobee.co.za or call 011 483 1190
7May, 2020
Employment Equity changes and Online Workshops and Learnerships!
1) The Department of Employment and Labour’s response to the impact of COVID 19 on the implementation of Employment Equity in the Labour Market Please find below a brief summary of the Commission for Employment Equity’s (CEE) response to the COVID-19 pandemic:
- First and foremost, they are aware of the catastrophic impact that this has had on our economy, job creation and job retention.
- They are thus understanding that the initial employment equity targets will not be “left unscathed”.
- However, all employers are reminded that they still need to comply with all employment equity laws during any restructuring or configuration to ensure that there is no unfair discrimination against employees.
- Employers must still strive to attain their 2020 EE targets, but in instances where this is not possible, they must document all reasons for the changes as prescribed in the EE regulations 2014.
- Submission of EE reports for 2020 to start on the 1st of September 2020 until the 15th of January 2021.
- SPECIAL – Generic Management NQF 5 or Labour Relations NQF 5 for only R20k!!! These are two extremely popular online learnerships to upskill your employees who are in managerial roles. These include managers, team leaders, supervisors, junior managers, section heads and foremen.
- Further online learnership options include:
21Apr, 2020
Support during Lockdown
As we enter the 4th week of our country-wide lockdown, I sincerely hope that everyone is coping as best they can, staying safe and coming to terms with working from home!
To all our clients in South Africa, we truly value your support and business and look forward to continue assisting you in the months and years to come. The COVID 19 crisis has certainly put pressure on our economy but the government, and various other bodies, have instituted a number of funds to assist companies who will be in need of financial support over the coming months. Companies who qualify for assistance must fall within a list of requirements, depending on the fund one seeks assistance from. Bearing this in mind, recently we’ve had a number of requests from companies to assist us in securing or improving their BEE certificate. If this is something that might be of interest to you, then please do no hesitate to get in touch with our team of legal experts who can advise you on the best possible way forward. Otherwise the team at EconoBEE sincerely wishes everyone the best over the coming weeks and months. 
9Apr, 2020
EconoBEE during COVID-19
Firstly, we would like to wish all those that celebrate, a Happy Easter 🙂 . We at EconoBEE hope you are staying safe and getting the hang of working from home! Our team has remote working capabilities and so is hard at work during this lockdown period, so please do not hesitate to contact us for any of your BEE, Skills Development (including Learnerships) and Employment Equity needs. Some SETAs have extended the submission deadline date for the skills development WSP and ATR submissions, please feel free to contact us for assistance with the submissions and we will be happy to assist. We are one of the oldest transformation consultants specializing in BEE, Skills Development and Employment Equity.
We are also able to provide full strategic Learnership solutions (including online eLearning and other training courses), as well as the option for us to provide hosting for your learners. For more information, please follow the link to visit our website or contact our offices on the following numbers: Johannesburg office: 011 483 1190
Durban office: 031 648 0048
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10Mar, 2020
Redefining Ownership in ICT
In the new ICT codes, provision is made for equity ownership by historically disadvantaged persons (HDG). HDG means black persons, women and persons with disabilities and youth, who before the Constitution of the Republic of South Africa 1996 came into operation were disadvantaged by unfair discrimination on the basis of race, gender, disability, sexual orientation and religion. The new minimum target for ownership of new individual license holders will be 30% black people and a minimum B-BBEE level 4 compliance. The level of compliance in terms of ownership needs to be maintained throughout the license period. Strict compliance is required by the new regulations which state that non-compliance by a licensee can result in a fine not exceeding R5 million or 10% of the company’s annual turnover. ICT companies have a 24 months transition period in which to comply with the new codes.
It is possible that the new definition of historically disadvantaged persons and the new minimum ownership is likely to impact other sector codes. With EconoBEE being one of the oldest consulting agencies in the country, we can help you understand the recent changes and help with the transition and implementation from the old codes to the new codes with regards to ownership in the ICT sector. Join us for the following upcoming workshops: Title: Half – day B-BBEE Workshop Date: 24 March 2020 (JHB) Duration: 09h00 to 13h00 Price: R1 700 Excl VAT (Free of charge for our BEE Managed Service Clients) Venue: Johannesburg – Office No 08, Braamfischer Office Park, 152 Bram Fischer Drive, Ferndale, Randburg Title: Skills Development Workshop Date: 07 April 2020 (JHB) Duration: 09h00 to 13h00 Price: R1 700 Excl VAT (Free of charge for our SD Managed Service Clients) Venue: Johannesburg – Office No 08, Braamfischer Office Park, 152 Bram Fischer Drive, Ferndale, Randburg Contact us on 011 483 1190 to book. For more information, click here
25Feb, 2020
EconoBEE’s Learnerships and Apprenticeships on Offer!
We’ve attached a document that gives an outline of EconoBEE’s learnerships and apprenticeships currently on offer. Before we look at that though, let’s take a look at how and why skills development in South Africa is so important, within a BEE framework. Grow your own timber through skills development Skills development is a priority element in terms of your B-BBEE scorecard. 40% compliance with this priority element is required to score points. Failure to comply will result in the measured entity being discounted one level from the level actually achieved in terms of all five elements. The target spend for skills development is 6% of your payroll and, of the 6%, 3.5% needs to be spent on category B to F spend which includes learnerships. 2.5% needs to be spent on Category A spend, specifically on bursaries for Black students at higher education institutions. 5 points are available to be earned specifically for black people participating in learnerships, apprenticeships and internships as a percentage of total employees when the measured entity spends 5% on learnerships, apprenticeship and internships. Mandatory and Discretionary Grants Besides BEE points there are other benefits to having skills development. Each employer must pay 1% of their payroll as a skills development levy and register with a relevant SETA. On an annual basis, before the deadline of the 30th of April 2020, SETA submissions will open and employers must report their workplace skills plan (which is their planned training for the year) and annual training report (training that has already happened in the previous year). If an employer’s submission is approved, the designated SETA can pay back up to 20% of the spend in the form of a mandatory grant. Mandatory grants are paid quarterly and any mandatory grant not claimed will be transferred into the SETA’s discretionary fund. The discretionary grants are paid out at the discretion of SETA management for skills development projects linked to scarce and critical skill, which allows employers to claim back between 40% to 60% of their training spend! Applications for discretionary grants must be made and approved before any training or other activity related to the skills development project can commence. A learnership means a work–based route to a qualification. It is a workplace education and training programme comprising both structured practical workplace (on-the-job) experience and structured theoretical training. S12H deductions: tax benefits related to learnerships This deduction is given to the employer depending on the NQF level and whether the learner is disabled or not. This deduction comprises of an annual allowance and a completion allowance and is applicable to learnerships that commenced after 30 September 2016, but before 1 April 2022. NQF Level 1-6 Annual allowance is R40 000 for the full 12 months but is apportioned for the number of months the learnership has been in effect during the year of assessment. (S12H(2)) Example: The learner, A Specimen, started a 12 months learnership on 1 August 2019 and the year of assessment is January to December. The annual allowance will be R16 667 (R40 000*5/12). Upon successful completion, the Completion allowance, in addition to the annual allowance, is R40 000 multiplied by the 12-month periods the learnership lasted. These 12-month periods are not apportioned. (S12H(3)) Example: A specimen has completed the learnership in the following year of assessment, that ends on December 2020. The completion allowance will be R40 000 (R40 000 *1 because the learnership was only for 12 months. An 18 months learnership would have a completion allowance of R40 000*3 claimed at the year of completion). For disabled learners, the Annual allowance is R60 000, the Completion allowance is R60 000 and calculated in the same way as above. (S12H(5)) NQF level 7-10 The annual allowance is R20 000 and the Completion allowance is R20 000. These are calculated similarly to the above. (s12H(2A)) For disabled learners, the annual allowance is R50 000, the completion is also R50 000 and these are calculated the same way as above. (s12H(5A)) In addition to the relevant IT180, the tax authority may require proof of completion from SETA or the training provider if the SETA has not sent one yet. The training provider may be required to send SETA accreditation, registration of the learnership with the SETA and a statement of results or similar documentation to claim these allowances. Contact us on 011 483 1190 or info@econobee.co.za for assistance and guidance on learnerships & skills development planning, and all your companies BEE needs.
11Feb, 2020
Say YES to Succession Planning and Skills Development!
In the past two newsletters we touched on the YES initiative and the importance of succession planning. In this newsletter we would like to discuss how it can all link and make business sense. As previously mentioned, none of these activities will ever work in any entity if they do not make business sense. Succession planning allows the business owner to plan for the future. The YES initiative’s purpose is to provide work experience for the youth and, with the absorption rule, then assist in the eradication of the unemployment crisis that we have in our country. Aligning the YES initiative to the business’s succession plan will also solve the skills development issue. After the absorption of the YES candidates, the entity will then have to look at upskilling the candidates in order for them to perform their duties effectively. This will address part of the 6% of the payroll spend under the skills development element on your BEE scorecard. Sending candidates for the right kind of learnerships, or paying for their higher education, can earn you points on your BEE scorecard but, not only that, the candidates will then come back and add value into the business and you will have people ready for growth within the entity, should an opportunity arise. For more information on how this can be approached, and for us at EconoBEE to answer any questions you may have, please join us for the workshops listed below: Title: 2-hour YES Initiative Workshop
Date: 25 February 2020 (JHB)
Duration: 09h00 to 11H00
Price: R750 Excl VAT
Venue: Johannesburg – Office No 08, Braamfischer Office Park, 152 Bram Fischer Drive, Ferndale, Randburg Contact us on 011 483 1190 or info@econobee.co.za
29Jan, 2020
Linking Succession planning to Skills development
Benjamin Franklin: “If you fail to plan, you are planning to fail!” A succession plan is a strategy which determines the best way for a critical employee to exit the business while ensuring that the business continues. The plan should determine who will take leadership of the business when a critical employee leaves or retires. Succession planning is a complex task that requires constant attention and ongoing resources. Part of successful succession planning requires companies to devote considerable time and resources to mapping out skills development and competencies, so that they can hire and train appropriately, and achieve a distinct competitive edge. Best-practice organizations also prepare for unforeseen events and the potential loss of key executives .These organizations view succession planning as an ongoing process, rather than an event that must be addressed every year or two. In terms of B-BBEE, Skills Development is a priority element of which the target is 6% of your payroll. The 2019 codes introduced a “fees must fall clause” that specifically includes tertiary education spend. To ensure successful succession planning that includes members of the designated group, it is critical that companies have a plan to “grow their own timber” through a Workplace Skills Plan which identifies their skills gaps and plan training for the year. SETA submissions for ATR(Annual Training Report) and WSP (Workplace Skills Plan) open on the 1st of February. Does your company have a strategy and workplace skills plan in place to make the most of 2020 in terms of skills development for your organization and positively impact your succession planning for the future? Contact us on 011 483 1190 or info@econobee.co.za for assistance and guidance on succession & skills development planning, and all your companies BEE needs.
29Jan, 2020
Say YES and move up a BEE Level!
Welcome back and a happy new year to you!! ???? The team at EconoBEE wish you a fantastic 2020 and hope that it will be a great start to the new decade! The matric results have just come out this week and, as we all know, not all the learners that passed will end up in University to pursue their dreams. The team at EconoBEE would like to urge you, as a business owner or senior decision maker, to consider joining the YES initiative and give our youth a chance at employment. Not only will this help the youth candidates obtain work experience, but it will also help your company possibly move 1 or 2 BEE levels up on your BEE scorecard. It also increases the number of economically active participants in the country which can only be a good thing! With 2020 being the 2nd year running of the YES initiative, we have decided to show you the stats below on the progress of the initiative and the benefits for companies that have participated thus far: 
Join us for the following upcoming workshop on YES: Title: 2-hour YES Initiative Workshop
Date: 25 February 2020 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – Office No 08, Braamfischer Office Park, 152 Bram Fischer Drive, Ferndale, Randburg Looking to host a YES candidate? Please contact Muriel on muriel@econobee.co.za for more information. We have moved! With the new year sometimes comes new beginnings, and that is indeed the case for us here at EconoBEE. We have moved to new offices but, aside from some initial phone problems (!), it is still business as usual and we are still here to help! We have moved from 435 Rugby Avenue, Ferndale, Randburg to Office No 08, Braamfischer Office Park, 152 Bram Fischer Drive, Ferndale, Randburg. Contact us on 011 483 1190 or info@econobee.co.za for assistance and guidance on the YES initiative and all your companies BEE needs.
Join us for the following upcoming workshop on YES: Title: 2-hour YES Initiative Workshop
Date: 25 February 2020 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – Office No 08, Braamfischer Office Park, 152 Bram Fischer Drive, Ferndale, Randburg Looking to host a YES candidate? Please contact Muriel on muriel@econobee.co.za for more information. We have moved! With the new year sometimes comes new beginnings, and that is indeed the case for us here at EconoBEE. We have moved to new offices but, aside from some initial phone problems (!), it is still business as usual and we are still here to help! We have moved from 435 Rugby Avenue, Ferndale, Randburg to Office No 08, Braamfischer Office Park, 152 Bram Fischer Drive, Ferndale, Randburg. Contact us on 011 483 1190 or info@econobee.co.za for assistance and guidance on the YES initiative and all your companies BEE needs.
25Nov, 2019
Better safe than sorry!
Are you ready for an inspection by the Labour Department in terms of your Employment Equity compliance? The 19th report of the Commission on Employment Equity entitled: “Transformation makes business sense” reflects the increase in employment equity reporting especially in the private sector. Part of the increase in number is attributed to the increase in Labour department inspections regarding implementation of affirmative action through an employment equity plan. The Labour Department has a target of at least 200 000 inspections per year to ensure compliance with the Employment Equity Act. The notice of inspection usually starts with a courtesy call followed by a letter detailing the name of the inspector, the date and time of the inspection. The designated employer will be requested to ensure the following information is available for inspection:
- Proof that the responsibility for EE is assigned to one or more senior manager(s) as required by section 24 of the Employment Equity Act through a Letter of assignment
- Proof of consultation with employees as required by section 16 read with section 17 of the Employment Equity Act, this is proved by providing Copies of minutes of the last Three EE Consultative forum Meetings; copies of the agenda of minutes; signed attendance registers.
- Proof of analysis conducted as required by section 19 of the Employment Equity Act
- Copy of Employment Equity Plan as required by section 20 of the Employment Equity
- Proof of the publication of your reports as required by section 22 (applicable to public companies)
- Proof of keeping of records as required by section 26 of the Employment Equity Act.
- Attendance of stakeholders such as your Trade Union/ Shop Stewards, EE Committee Members as well as the CEO (if possible) at the inspection, if possible.
8Nov, 2019
All that Glitters is not Gold!
“All that glitters is not gold”. True and valid ownership in Broad-based black economic empowerment deals using trusts. The aim of the Broad-Based Black Economic Empowerment Act 53 of 2003 (B-BBEE Act) is the facilitation of B-BBEE by giving access to the economy which results in the necessary economic transformation of the South African economy. There is a clear misalignment between what is a legal trust and a trust that is B-BBEE compliant. There are different interpretations to this that have resulted in the BEE commissioner pronouncing that some trusts are currently invalid. It is therefore important that the ownership structures used are both correct in terms of not just the law in terms of what constitutes a trust, but fulfills the BEE Act in terms of economic interest and voting rights as outlined by the code requirements. This alignment is very important. This is probably making you wonder if the trust in place in your entity is a valid one, or if it has any fronting indicators. We at EconoBEE provide guidance in setting up and dissolving trusts and the advice we offer in setting up these trusts not only focuses on the ownership element, but we also make sure it makes business sense. We also review documentation of trusts that are already in place to assist with the identification of fronting indicators and provide corrective measures thereof. Join us for the following upcoming workshops: Title: 2-hour overview – Enterprise and Supplier Development
Date: 13 November 2019 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Title: 2-hour overview – Procurement
Date: 21 November 2019 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Title: 2-hour overview – Socio – economic Development
Date: 27 November 2019 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Title: Full Day B-BBEE Workshop
Date: 03 December 2019 (JHB); 05 December 2019 (DBN)
Duration: 09h00 to 16H30
Price: R3 913.04 Excl VAT (50% discount for our Managed Service Clients)
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg; Durban – Office No 4C, The Circle, Douglas Crowe Drive, Ballito Title: 2-hour overview – Verification
Date: 04 December 2019 (JHB)
Duration: 09h00 to 11H00
Price: R850 Excl VAT
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Title: Half – day B-BBEE Workshop
Date: 10 December 2019 (JHB)
Duration: 09h00 to 13h00
Price: R1 700 Excl VAT (Free of charge for our Managed Service Clients)
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Contact us on 011 483 1190 to book. For more information, click here
29Oct, 2019
Employment Equity Submissions Reminder!!!
A few weeks ago, we sent out a newsletter to inform all the designated employers that the Employment Equity submissions to the Department of Labour window period has officially opened. We at EconoBEE thought we should take a moment to remind you to get those submissions in and to inform you that there has been a change that you will need to take into consideration when preparing for the submission. On the 8th of August 2019 the Department of Labour announced a change in the EEA form.
It is important for designated employers to fill in the new form as part of the 2019 submission season. What are the changes that have been introduced and how may they impact your EE reporting?
With the year almost at an end, and the submission window period approaching it’s deadline, we at EconoBEE will provide you with an answer to the question above and assist you in identifying if you are a designated employer in your specific sector. Join us for the following upcoming workshops: Title: Full Day Employment Equity Workshop Date: 29 October 2019 (JHB) Duration: 09h00 to 16H30 Price: R3 913.04 Excl VAT (50% discount for our Managed Service Clients) Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Title: 2-hour overview – Y.E.S Date: 06 November 2019 (JHB) Duration: 09h00 to 11H00 Price: R850 Excl VAT Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Title: 2-hour overview – Enterprise and Supplier Development Date: 13 November 2019 (JHB) Duration: 09h00 to 11H00 Price: R850 Excl VAT Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Title: Full Day BEE Workshop Date: 13 November 2019 (DBN) Duration: 09h00 to 16H30 Price: R3 913.04 Excl VAT (50% discount for our Managed Service Clients) Venue: Durban – The Circle, Douglas Drive, Ballito Title: 2-hour overview – Procurement Date: 21 November 2019 (JHB) Duration: 09h00 to 11H00 Price: R850 Excl VAT Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Title: 2-hour overview – Socio – economic Development Date: 27 November 2019 (JHB) Duration: 09h00 to 11H00 Price: R850 Excl VAT Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg Please contact us on 011 483 1190 or email us to book.
16Oct, 2019
DRAFT AMENDED CODES!
On the 25th of September 2019 the draft amendment Tourism B-BBEE sector codes were announced. The draft amendment Tourism sector codes aim to create a sustainable tourism industry that is globally competitive, but also transformed with the empowerment of Black people. The sub-minimum requirement for the priority elements of ownership, skills development and enterprise and supplier development is 40%. It is noted under enterprise and supplier development, for the avoidance of doubt, that the minimum requirement for a measured entity is 11 points under the Preferential Procurement category; 4 points under the Supplier Development category; and 2 points under the Enterprise Development category; Clarity is given in the Tourism codes around how the flow through principle will apply, as well as guidelines on the turnover threshold to measured entities that are EME, QSE and Generic which is different to amended codes of good practice. The draft amended Tourism sector codes have also had changes to definitions and some new definitions with respect to absorption, current equity interest date, designated group supplier, long term contract employment, new enterprise. The draft amendment tourism sector codes are a clear indication that all other sector codes will be amended to align them with the 2019 amended codes. Measured entities in other sectors such as MAC, ICT, Financial services, Accountancy, Property, Construction etc. need to plan for 2020 with this in mind. With EconoBEE being one of the oldest consulting agencies in the country, we can assist you in finding out if the recent changes apply to your entity and also help you with the transition and implementation from the old codes to the new codes. Workshops: It is Employment Equity submission time again! Join us for an in-depth look at Employment Equity whereby we will help you prepare for this important submission: Title: Full Day Employment Equity Workshop Date: 29 October (JHB) Duration: 09h00 to 16H30 Price: R3 913.04 Excl VAT (50% discount for our Managed Service Clients) Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg In addition, EconoBEE is offering an 8-week series of two (2) hour overview workshops (09h00 – 11h00) for each element on the B-BBEE scorecard. We would like to invite you to come join us at 435 Rugby Avenue, Ferndale on the dates listed below: 16 Oct – Management control 23 Oct – Ownership 30 Oct – Skills Development 06 Nov – YES Initiative 13 Nov – Enterprise and Supplier Development 20 Nov – Procurement 27 Nov – Socio-Economic Development 04 Dec – Verification The cost for the 8 week series is R850.00 excl VAT for each session, please contact us on 011 483 1190 or email pheliswa@econobee.co.za to book.
1Oct, 2019
B-BBEE Ownership Pitfalls!
Sales of Assets: Grey Area of Interpretation
Sale of assets is a recognized avenue to facilitate ownership within B-BBEE ownership deals. Is there a grey area of interpretation of how the sale of assets should be calculated?
The requirements for a sale of an asset to qualify for ownership, is that for an on-going business to be recognized as an ownership deal:
Must result in a sustainable business,
No unreasonable limitations can be placed on the business, and it
Must be at arms-length to avoid fronting.
Sale of machinery is not recognized.
The codes are clear “transfer of business rights by way of license, lease or other similar legal arrangements not conferring unrestricted ownership; and sales of franchises by franchisors to franchisees, but includes sales of franchises from franchisees to other franchisees or to new franchisees do not qualify for recognition”.
Debate
Should the value of the business assets minus liabilities be taken into consideration as the value of the business or rather should it be the value of the shares in the business?
For example, company A has a market value of 50 million rand and they have a maintenance department worth 5 million rand. The value of company A shares, which are unlisted on the JSE, is approximately R500 000 making up 500 000 shares. Should the company want to sell their maintenance department as part of a sale of assets ownership deal, what factors should be taken into consideration in calculating the value of the sale of assets and its equivalent in terms of black ownership?
Keep in mind that for black ownership to qualify, the maintenance business must be sold at a minimum to a 51% black ownership company.
What is the true value of Company A?
One school of thought would argue that the value of Company A should be calculated solely on the market value of the business which is 50 million rand.
Another school of thought would argue that the value of business should be calculated using an equation that takes into account the value of the business, as well as the value of the unlisted JSE shares.
With EconoBEE being one of the oldest consulting firms specializing in BEE, Employment Equity and Skills Development, guidance is given by our team of highly qualified consultants in the sale of asset ownership deals to ensure compliance.
To help you further understand the above, we have the following upcoming workshops on BEE:
Title: Full-Day B-BBEE workshop
Date: 08 October (JHB), 09 October (CPT), 13 November (DBN)
Duration: 09h00 to 17h00
Price: R3 913.04 Excl VAT (50% discount for our Managed Service Clients)
Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg, Durban – The Circle, Douglas Drive, Ballito, Cape Town.
To book please email us on pheliswa@econobee.co.za or call us on 011 483 1190
Click here for more information on the various workshops we hold.
17Sep, 2019
Is BEE costing you business?
I’d like to share a story with you. Recently a very large company lost out on a huge tender due to not having a favourable BEE rating. Their product was great, their service was great, but their BEE status was not great. I often hear people saying, “I’m in a niche market” or “my customer will always buy from me”. But this is not always true. What happens when there is competition? And what happens when that competition also has a great product and great service? And due to their better BEE rating they get the business? The sad part is most of the companies who fall into the category of the above don’t even realise that they are losing business and actually had the potential to grow the business. Implementing BEE should not be seen as a grudge purchase, it is something that is part of your business strategy. Our approach synergises your BEE activities, Employment Equity and Skills Development, Succession planning, Change management to ensure that activities are value adding and transformation is achieved in a sustainable and long term way. Join us for the following upcoming workshops: Title: Half Day Employment Equity Workshop Date: 19 Sep (JHB), 26 Sep (DBN), 10 Oct (CT) Duration: 09h00 to 13h00 Price: R1 700 Excl VAT (Free of charge for BEE Managed Service Clients) Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg, Durban – The Circle, Douglas Drive, Ballito, Cape Town – TBC Title: Full Day BEE Workshop including the Amendments to the B-BBEE Codes Date: 08 Oct (JHB), 09 October (CT), 13 Nov (DBN) Duration: 09h00 to 17h00 Price: R3 913.04 Excl VAT (50% discount for BEE Managed Service Clients) Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg, Durban – The Circle, Douglas Drive, Ballito, Cape Town – TBC To book please email us on pheliswa@econobee.co.za or call us on 011 483 1190 Click here for more information on the various workshops we hold.
27Aug, 2019
Employment Equity submission window period opens 1 September 2019 to 15 January 2020
In our previous newsletter we touched on the disconnect between Management Control and Employment Equity. In this newsletter, though, we are reminding you that the Employment Equity report submission window period to the DoL runs from the 1st of September 2019 to 15 January 2020. Designated employers (companies, government departments) are obliged to submit every year to the DoL, as per the Employment Equity Act. This includes their employment equity reports in relation to demographic profiles, gender representation and employment equity plans on how to address discrimination and inequity in the workplace. If you qualify as a Designated Employer and either: Supply incorrect information, do not comply with the Employment Equity Act requirements, or do not submit the documents on time, then the following could occur:
- You may be fined heavily by the DoL – up to 10% of turnover depending on the severity of contravention.
- The DoL may visit you and do a full audit on your company.
13Aug, 2019
The Disconnect between Management Control and Employment Equity
A designated employer is required in terms of the Employment Equity Act to create a representative workforce at each occupational category/level. An employer is held to be designated if they employ 50 or more employees. Should an employer have fewer than 50 employees, but have a total annual turnover as reflected in terms Schedule 4 of the Employment Equity Amendment Act 47 of 2013, they will be required to submit an employment equity report with the Department of Labour. Municipalities and Organs of State are also held to be designated employers. In terms of section 14, an employer can volunteer to become a designated employer. In terms of the Employment Equity Act, the designated group includes:
- Africans, Indians, Coloureds and Chinese
- women and
- persons with disabilities.
30Jul, 2019
“We are not going to scrap B-BBEE” – Ramaphosa
In one of our previous newsletters, we mentioned that B-BBEE still remains an absolute necessity and will be around for many years to come, albeit in an evolved form. President Cyril Ramaphosa’s recent speech to the National Assembly, is proving this true: “We are not going to scrap B-BBEE, because it has brought real benefits to blacks, women and persons living with disabilities. It has contributed to the significant growth of a black middle class, boosted employment equity and it has enabled black people and women to become owners and managers of businesses,” and “Far from abolishing it (B-BBEE), now is actually the time to strengthen it, to make it more effective and make it more aligned with our goals of increasing investment and employment,”. Read the full article here Where does that leave you? As a company, you and your staff need to be aware of B-BBEE and the various elements. For instance, B-BBEE affects purchasing decisions (procurement), staff recruitment (management control), strategic partnerships (Supplier and Enterprise Development and Ownership), staff training and succession planning (Skills Development), community assistance (Socio-Economic Development) and numerous other business decisions. By attending our training, you will be equipped to maximise opportunities to improve your company’s B-BBEE scorecard in a way that makes business sense, and be fully prepared to implement BEE activities in your company. EconoBEE offers various B-BBEE specific workshops in Johannesburg, Cape Town and Durban and if you are needing more tailored assistance, we are specialists in customising seminars specific to your company’s needs. A brief look at our upcoming Workshops include:
All prices exclude VAT For more information on our training, please click here / contact us on 011 483 1190 or email pheliswa@econobee.co.za
| DATE | WORKSHOP TITLE | PRICE |
| Johannesburg | ||
| 06 August 2019 | 2 hour Y.E.S | R750.00 |
| 15 August 2019 | Half Day – Employment Equity | R1700.00 |
| 27 August 2019 | Half Day – BEE | R1700.00 |
| 10 September 2019 | Sector Codes: Property | R1700.00 |
| 19 September 2019 | Half Day – Employment Equity | R1700.00 |
| 26 September 2019 | Half Day -Skills Development | R1700.00 |
| 08 October 2019 | Full Day – BEE | R3193.04 |
| 17 October 2019 | Sector Codes: ICT | R1700.00 |
| 31 October 2019 | Half Day – Employment Equity | R1700.00 |
| Durban | ||
| 27 August 2019 | Full Day – BEE | R3913.04 |
| 28 August 2019 | Half Day – Employment Equity | R1700.00 |
| 13 November 2019 | Full Day – BEE | R3913.04 |
| 14 November 2019 | Half Day – Employment Equity | R1700.00 |
| Cape Town | ||
| 13 August 2019 | Half Day – BEE | R1700.00 |
| 14 August 2019 | Half Day – Employment Equity | R1700.00 |
| 17 September 2019 | Half Day – Employment Equity | R1700.00 |
| 18 September 2019 | 2 hour Y.E.S Initiative | R750.00 |
| 09 October 2019 | BEE- Full Day | R3913.04 |
| 10 October 2019 | Half Day – Employment Equity | R1700.00 |
16Jul, 2019
18 July – Mandela Day Post!
The date of the 18th of July has been adopted by the international community as Nelson Mandela International Day. In South Africa, we have the opportunity to take this one step further by embracing the aims of the Mandela Day movement and incorporating this within our Socio-Economic Development (SED) strategies. We can all make a difference and companies embracing this idea can, through their collective effort, truly change our country. Mandela Day is not a holiday, but rather it is a day for all of us to opt into humanity – to roll up our sleeves and play an active role in building our communities. This is an opportunity for each of us to share Nelson Mandela’s vision of a better future for all.
“What counts in life is not the mere fact that we have lived. It is what difference we have made to the lives of others” – Nelson Mandela
There are many objective’s of the Mandela Day movement but ultimately it seeks to empower communities everywhere. Specific goals that have been identified for 2019 – 2029 relate to the following categories:- Education and Literacy
- Food and Nutrition
- Shelter
- Sanitation
- Active Citizenship
- Title: Full Day BEE Workshop including the Amendments to the B-BBEE Codes
- Date: 18 July (JHB), 27 August (DBN), 09 October (CT)
- Duration: 09h00 to 17h00
- Price: R3 913.04 Excl VAT (50% discount for BEE Managed Service Clients)
- Venue: Johannesburg – 435 Rugby Avenue, Ferndale, Randburg, Durban – The Circle, Douglas Drive, Ballito, Cape Town – TBC