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    5Sep, 2024
    Are You Ready for the Employment Equity Reporting Season?

    Spring is upon us! As the season of renewal and growth begins, it’s the perfect time for businesses to refresh and align their strategies with South Africa’s transformative goals. Just as nature blossoms and adapts, now is the moment for your organization to spring into action and ensure compliance with the Employment Equity (EE) Act.

    Why is Employment Equity Reporting Important?
    Well, the upcoming Employment Equity reporting deadline is a reminder to all designated employers to prioritize EE compliance, especially now that there has been some confusion recently about which version of the Employment Equity Act is currently in effect. Our sources within the Labour Department have clarified that the Employment Equity Amendment Act No. 47 of 2013 is indeed the current legislation in force. According to this Act, “designated employers” are defined as those with 50 or more employees or those with fewer than 50 employees who meet the turnover threshold specified in Schedule 4 of the Act.

    Additionally, employers with fewer than 50 employees may also be considered designated employers if they meet the turnover thresholds outlined in Schedule 4 of the Act. Additionally, employers who do not meet these criteria can still choose to voluntarily do their EE reporting as stipulated in Section 14 of the EE Act. Beyond avoiding fines that can reach up to R1.5 million or 2% of annual turnover (rising to R2.7 million or 10% for repeat violations), embracing Employment Equity is about fostering a workplace that is as diverse and inclusive as our vibrant country. It’s about reflecting the rich tapestry of South Africa in your business and taking steps toward a more equitable economy.

    B-BBEE and Spring Growth
    Just like the new growth we see in spring, Broad-Based Black Economic Empowerment (B-BBEE) and Employment Equity present opportunities for growth, innovation, and a thriving business environment. By aligning your business with these principles, you not only comply with regulations but also position your company as a leader in transformation and inclusivity.

    Let Us Help You Bloom!
    Our experts are here to help you tackle the challenges of EE and B-BBEE compliance. Whether it’s EE planning plan, completing your reports, or increasing your B-BBEE score, we’ve got you covered. Don’t miss this chance to renew and refresh your commitment to transformation—just in time for spring!

    Don’t Miss the Deadline!
    Reach out to us today on 011 483 1190 or email us . Let’s work together to grow a more inclusive and prosperous future.

    Best Regards,
    The EconoBEE Team
    www.econobee.co.za

    5Mar, 2024
    March Musings: 3 Months into 2024!

    We have only just begun the third month of 2024 and yet what a busy year it has been; from increases to renewals and a draft thrown in for good measure 😉 – here is a summarised look at what has transpired thus far:

    • EE News: Employment and Labour Minister TW Nxesi introduced new draft regulations in Feb 2024, addressing sectoral numerical targets (Click here to see our newsletter on this topic) Comments are due by the second of May 2024.
    • Minimum Wage Increase: Effective from the first of March, the National Minimum Wage (NMW) for each ordinary hour worked will increase to R27.58. There are some exceptions, so please click here for more information on this.
    • Renewal to the Section 12H Tax Incentive: The recent Budget Speech confirmed that the Section 12(H) Learnership Tax Incentive has once again been extended, this time by three years, until the thirty first of March 2027. Want this benefit for your company? Then call us now on 011 483 1190 and speak to us about our Learnership offerings that provide a range of benefits, are aligned to skills development and include various B-BBEE advantages for companies!

    What has the next few months got in store for us?

    Well, it’s anyone’s guess 😉 Seriously though, we have heard rumblings about QCTO and Transport Sector Codes and so both will be discussed in more detail in future newsletters:

    • QCTO: According to recent reports, the last date of registration for all ‘historical’ (read not-QCTO) qualifications is the thirtieth of June 2023, with a phase-out period of one year for learners to still enrol up to and including the thirtieth of June 2024. Providers offering learnerships, and other skills development programmes, need to ensure accreditation so that they can move over to the QCTO framework ASAP. This is especially important for companies that rely on both of above for B-BBEE level points.
    • Transport sector codes: Expected to be gazetted around March 2024, the Transport Sector Charter (TSC) is set for some big amendments. And, unlike previous other sector and other Code amendments, the TSC has not provided a “grace period” for transitioning. This is very concerning as this may result in some companies obtaining unfavourable B-BBEE status due to the lack of additional planning time.

    As the industry awaits clarity on above, one thing is clear: Adaptation will be crucial for success in the evolving regulatory landscape. Stay tuned for updates as we decipher the implications together.

    Last but not least . . . we want to end off this newsletter discussing our new look at Training and Workshops!

    We are ramping up our webinar offerings and workshops, and will be providing more information on this soon.

    In the meantime, book your space now for our not-to-be-missed Skills Development submissions workshops in March and early April!

    7Feb, 2024
    Breaking News -> -> -> Updated Employment Equity Targets for Public Comment

    01 Feb 2024 saw the release of proposed updated Employment Equity Targets, Focusing on Diversity within the Workforce

    Big changes are coming to the Employment Equity Act! The Department of Employment and Labour has revised its targets, aiming to increase diversity and representation, in all management positions, from junior to top management.

     

    Here’s what you need to know:

    • New law, new targets: In April 2023, President Ramaphosa signed the legislation empowering the Minister of Labour to set sector-specific targets for different industries.
    • Draft targets published: Draft targets for various sectors are open for public comment until May 2nd, 2024.
    • Focus on all management positions: The revised targets prioritize achieving diverse leadership teams. For example, in manufacturing, 40% of top management should be from designated groups (Black people, women, people with disabilities), with at least 15% being female.
    • Goodbye specific quotas: The new system replaces individual quotas for African, Coloured, and Indian employees with a broader “designated groups” category.
    • Nationwide reach: Provincial and national targets are merged, creating a single national target for each sector.
    • Faster progress expected: The department aims to accelerate progress towards fairer representation in workplaces, acknowledging the slow pace of previous efforts.

     

    What does this mean for businesses?

    Companies with more than 50 employees will need to adapt to the new targets. This might involve:

    • Reviewing workforce demographics: Assess how your company aligns with the revised targets, especially in senior management.
    • Developing strategies: Implement plans to attract, recruit, and promote talent from designated groups to achieve the desired representation.
    • Staying informed: Closely monitor updates and public comment outcomes regarding the final targets.

     

    Keep in mind: These are draft targets, and the final version might be adjusted based on public feedback. This is your opportunity to exercise your right to comment during this 90 day window and to prepare for potential changes and so ensure your company complies with the evolving Employment Equity Act. Click here to read the full draft regulation.

    Unsure of what this all means for you and your company? Choose EconoBEE as your consultant for a stress-free Employment Equity process, from A-Z! Our expertise and commitment to staying updated on regulations ensure you meet your compliance needs effortlessly.

    10Nov, 2023
    Unlocking the Dynamics of Employment Equity

    Unlocking the Dynamics of Employment Equity: Join Our Workshop with Dr. Muriel Mushariwa

    We are thrilled to announce an exciting opportunity for all individuals and organizations passionate about fostering equality and inclusion in the workplace. Join us for our upcoming Employment Equity Workshop, “Unlocking the Dynamics of Employment Equity,” taking place on November 30th, 2023. Led by the distinguished Dr. Muriel Mushariwa, this workshop promises to be an eye-opening exploration of the Employment Equity Act and its imminent amendments, offering invaluable insights and strategies for success.

    Why Attend Our Employment Equity Workshop? At the heart of this event is our dedicated instructor, Dr. Muriel Mushariwa, whose illustrious career as a Senior Lecturer of Law is marked by a profound commitment to advancing Employment Equity. Dr. Mushariwa’s expertise extends across a spectrum of skills, from lecturing and public speaking to legal writing, analytical prowess, and policy analysis. With an LLB and LLM from the University of Kwazulu-Natal, Pietermaritzburg and a PhD from the University of Witwatersrand, her academic accomplishments underscore her dedication to legal excellence.

    Dr. Mushariwa is not just an academic; she’s a consultant specializing in Employment Equity, Skills Development, and Broad-Based Black Economic Empowerment. This unique blend of academic knowledge and real-world experience equips her to offer participants practical guidance on navigating the complexities of Employment Equity.

    What to Expect: Workshop Highlights During this workshop, participants can look forward to an engaging and enlightening journey through the following key topics:

    • Overview of the Employment Equity Act: Gain a solid understanding of the foundational principles and historical context of the act.
    • Impact of the Proposed Employment Equity Amendment Act: Explore the proposed amendments and their implications for organizations.
    • Implementation of the Employment Equity Act: Receive practical strategies for successful implementation and compliance.
    • Linking Employment Equity to Broad-Based Black Economic Empowerment (B-BBEE) Strategy: Discover the interplay between Employment Equity and broader economic empowerment goals.

    Unlock the Power of Knowledge This workshop is not just a learning opportunity; it’s a chance to gain knowledge that empowers you to be a change-maker in your organization. Dr. Muriel Mushariwa’s expert insights, eloquent communication, and extensive knowledge will equip you to navigate the evolving landscape of Employment Equity with confidence and success. Whether you’re an HR professional, a business owner, or someone passionate about equality, this workshop is designed to provide you with actionable takeaways.

    Reserve Your Spot Don’t miss this unique opportunity to learn from a true expert in the field. Reserve your spot today and take the first step toward becoming a genuine advocate for Employment Equity. Join us on November 30th, 2023, and embark on a transformative journey towards creating a more equitable workplace.

    Stay connected with us for more updates, resources, and insights to prepare you for the workshop. We look forward to your participation and to collectively driving positive change in the world of Employment Equity.

    21Sep, 2023
    Crucial Update for EE Submissions

    If you are an employer in South Africa, here is an important heads-up! The 2023 Employment Equity (EE) reporting period has arrived, and there is a crucial update you need to be aware of.

    As communicated by the Department of Labour, the EE Amendment Act, No. 4 of 2022 has not yet come into effect, which means that all designated employers, regardless of size (yes, even those with 1-49 employees), need to submit their 2023 EE Reports (EEA2 and EEA4 forms) using the current Employment Equity Act, 1998 (EEA).

    Key Dates to Mark:

    • Submission period opens on 1 September 2023, offering both manual and online options.
    • Manual EE submissions must be in by 2 October 2023.
    • For online submissions, the deadline is 15 January 2024 (midnight).

    Just so you know, missing the 15 January 2024 (midnight) deadline could lead to enforcement actions under the EEA. Your organisation might also be left out of the Employment Equity Public Register for 2023.

    We are here to make it easy for you, choose EconoBEE for a stress-free EE submission process!

    Our expertise and commitment to staying updated on regulations ensure you meet your compliance needs effortlessly. Let us make your EE submission a breeze.

    Reach out to EconoBEE on 011 483 1190 and talk to a consultant at your convenience.

    6Jun, 2023
    Employment Equity: More on Sectoral Targets

    We recently announced the changes that have been brought about by the Employment Equity Amendment Act 4 of 2022 in April 2023.

    The proposed Sectoral targets have since been announced for public comment. This means that once finalized designated employers will need to amend their Employment Equity plans to be aligned with the new Sectoral targets.

    There have been several criticisms leveled at the new Sectoral targets, one of which are that it may results in quotas and is not reflective of the current state of representivity in certain industries.

    It is important to note that these sectoral targets are likely to be fine tuned after the public comment, but it is important for designated employer to look at how their employment equity planning will be impacted by the sector targets.

    We will continue to keep you informed about the effective date of these amendments once it is proclaimed by the President. Should you require more detailed explanations and information about these key amendments, please contact our Business Development Team on 011 483 1190

    13Apr, 2023
    Employment Equity Bill Signed into Law on 12 April 2023!

     

    Hot off the press: President Cyril Ramaphosa has signed the Employment Equity Bill into law on Wednesday (12 April)!

    This is big news for companies with fewer than 50 employees. They will no longer be designated employers (regardless of turnover) and therefore won’t need to meet EE compliance criteria or submit annually.

    These amendments have been introduced with the aim of giving the Employment and Labour Minister the ability to regulate sector-specific EE targets and compliance criteria to issue EE Compliance Certificates (which are necessary for companies wanting to do business with the State).

    All companies with more than 50 employees will need to submit employment equity plans addressing the targets (amongst other criteria) and annually submit reports to the Department of Employment and Labour. Designated Employers wishing to do business with the State will be required to produce a certificate of compliance from the Labour department.

    The Department is also in the process of increasing the number of labour and health inspectors in order to monitor and enforce compliance as the law now obliges inspection of workplaces and issuing of compliance orders to ensure the envisioned changes actually happen.

    Companies must also keep themselves updated with changes to the National Minimum Wage Act (and amendments), as the compliance certificate mentioned above not only deals with compliance to the EE Act and its objectives, but also confirms that these companies do pay their employees equal to or more than the national minimum wage.

    All in all, these changes will help ensure that suitably qualified people from designated groups have equal employment opportunities and are represented at all occupational levels in the workplace. So, get ready to embrace the new regulations – they’re coming your way!

    Do you need help in navigating these new changes?

    Contact EconoBEE today on 011 483 1190!

    30Aug, 2022
    Employment Equity Submissions

    Can you believe that it is Employment Equity Submission time again?!!

    The submission window opens on 01 September 2022

    Employment Equity Submissions is an annual requirement of all designated employers as per the Employment Equity (EE) Act.

    The EE Act came into being in 1998 and its purpose is to promote equal opportunity and fair treatment in employment through the elimination of unfair discrimination, implementing affirmative action measures to redress the disadvantages in employment experienced by designated groups and to ensure their equitable representation in all occupational levels in the workforce.

    The Employment Equity Amendment Bill is expected to be released in September 2022, as this is when the current workforce equity plans, set by employers themselves, will elapse and it is envisaged that the labour minister would then set new five-year targets in terms of the new law as well as introduce additional changes.

    All designated employers must ensure that online submissions are done before the deadline, and the scope of the submissions must comply with any potential changes resulting from the amendments.

    Unsure if you are a designated employer or what is expected from your company in terms of the submissions or the amendments? Contact us on 011 483 1190 or email us info@econoservices.co.za to help you navigate these changes!

    We will also be hosting online workshops regarding Employment Equity Submissions, please contact us for more information and to book your seat.

    7Jun, 2022
    Penalties for Employment Equity Contraventions!

    Penalties for Employment Equity Contraventions!South African companies are currently facing penalties for failing to meet the targets set in their Employment Equity (EE) plans. We are now seeing the Department of Labour ramping up its auditing and has stated that the majority of companies with March 2022 year-end, have missed the mark in terms of complying with EE legislation.

    One of the reasons for companies being fined and penalised is that their EE plans are not conforming with the goals and numerical targets set by the designated employers and therefore not projecting rational progress towards transformation. It is therefore prudent that companies avoid setting targets in their EE plans that are not attainable.

    EconoBEE specialises in Employment Equity Services and is therefore well-equipped to assist companies accurately when it comes to compliance in terms of EE plans.   

    EconoBEE also hosts and runs workshops on Employment Equity in which we advise companies and their relevant staff members on how they can comply with EE legislation

    For more information on our EE assistance and training and workshop offerings, please contact us on 011 483 1190 or email info@econobee.co.za

     

    9Nov, 2021
    Happy News to end off 2021

    It is with great pleasure that we announce that EconoBEE is officially 51% Black owned and is the leading Black Economic Empowerment (BEE) Strategy and Management Consulting firm in South Africa.

    Founded in 2000, EconoBEE is a highly specialised, niche corporate advisory business that specialises in providing companies with Research, Advice and Structuring services in the areas of Corporate Regulatory Compliance within the Broad-Based Black Economic Empowerment (B-BBEE), Employment Equity (EE), Transformation, Enterprise and Supplier Development (ESD) and Skills Development (SD) ecosystem. As a 51% Black Owned EME, EconoBEE is a Level 2 BEE compliant company with a total recognition score of 125%. As a visionary organisation within the South African BEE context, the company’s strategic goal is to ease the legal, compliance and administrative burdens and legislative shortcomings of its clients, whilst assisting in their growth endeavours. EconoBEE makes use of highly sophisticated, state-of-the-art technology software to analyse their client’s corporate ownership structures. This is further bolstered by an in-depth set of Gap Analyses in the formulation of scorecards that essentially measure the success of their clients’ strategic endeavours and corporate goals. Our team is made up of a team of consultants with a mixture of legal and commercial qualifications. EconoBEE’s revolutionary consulting concepts and analytical management methodologies  has resulted in the business, as well its brand, becoming one of the most recognized in the areas of Transformation and Broad-Based Black Economic Empowerment in South Africa.

    We look forward to growing EconoBEE to greater heights as we begin this new journey.

    27Oct, 2021
    Sector-Specific EE Targets: Are You Ready?
    The Commission of Employment Equity is currently in consultation with industry stakeholders to finalise the highly-anticipated Employment Equity Draft Amendment Bill. One of the key features of the bill will be introducing tailored Economically Active Population (EAP) targets. For employment equity compliance, this will be a simple exercise that may affect designated employers’ quantitative analysis and numerical targets for each occupational level. Due to the inter-relatedness of B-BBEE legislation and employment equity regulations, there may also be changes in management control (Statement 200) and skills development (Statement 300), as these elements include EAP targets to allocate the points you may earn. As your consultants, we have deliberated on these amendments and have strategic ideas on how best you can manage these coming changes. Give us a call at 011 483 1190 or email: info@econobee.co.za to find out how we can prepare you in advance!  
    14Sep, 2021
    Employment Equity Compliance vs Government Business
    A new amendment to the Employment Equity Act will have serious implications for companies who plan to do business with government going forward. In terms of section 53 of the Amendment Act, measured entities will be issued with a compliance certificate for Employment Equity which is valid for a period of twelve months from the date of issue. The EE compliance certificate will be a prerequisite for access to contracts with the State and any of its organs; it will therefore be impossible for companies to do business with the government going forward without this certificate. In terms of proposed Employment Equity amendments, the criterion for non-designated employers is to comply with the national minimum wage or prove that they have been granted exemption and have no CCMA unfair discrimination awards against them. The criteria for designated employers will be to submit annual Employment Equity Reports, comply with the national minimum wage or prove that they have been granted exemption not to pay the national minimum wage, comply with their own annual Employment Equity targets and work towards the five-year sector specific Employment Equity targets. Please feel free to reach out to us on 011 483 1190 or info@econobee.co.za if you would like to hear more.  
    31Aug, 2021
    Are you a Designated Employer and have to submit your Employment Equity Forms?
    Are you uncertain as to whether you are required, by law, to submit your employment equity forms? The submission window to submit your employment equity forms opens up on the 1st of September 2021. What is the current definition of a designated employer?
    • An employer who employs 50 or more employees,
    • Or an employer who employs fewer than 50 employees, but has a total annual turnover as reflected in Schedule 4 of the Employment Equity Amendment Act No. 47 of 2013.
    • Municipalities and organs of State
    • Employers can also volunteer to become designated employers in terms of section 14 of the EE Act.
    TURNOVER THRESHOLD APPLICABLE TO DESIGNATED EMPLOYERS
    Sector or subsectors in accordance with the Standard Industrial ClassificationTotal Annual Turnover
    AgricultureR6,00 million
    Mining and QuarryingR22,50 million
    ManufacturingR30,00 million
    Electricity, Gas and WaterR30.00 million
    ConstructionR15,00 million
    Retail and Motor Trade and Repair ServicesR45,00 million
    Wholesale Trade, Commercial Agents and Allied ServicesR75,00 million
    Catering, Accommodation and other TradeR15,00 million
    Transport, Storage and CommunicationsR30,00 million
    Finance and Business ServicesR30,00 million
    Community, Special and Personal ServicesR15,00 million
    All designated employers must submit their employment equity reports every year. 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.
    If you need help in preparing and submitting your employment equity reports or ensuring that your employment equity committee and documents are in order, please feel free to contact us at EconoBEE to assist.
    19Jul, 2021
    Have you read: The 21st CEE Report?
    The 21st Commission of Employment Equity Report has been issued and it shed light on some Employment Equity developments. These are also in line with the Draft Amendment Bill that is still being reviewed in parliament. As expected, the report has updated EAP targets which are useful in the quantitative analysis of each management level. These have changed slightly from last year: The commission has consulted most of the business sectors to set sectorial targets. The finance and business sector has finalised the discussions. Based on these developments, all designated employers should be proactive and review their EEA12 and EEA13 to be prepared. More changes are yet to come; give us a call to find out how best you can stay compliant with Employment regulations. Did you Know?
    1. You don’t have to sell your company shares in order for you to earn points on the ownership scorecard. The B-BBEE codes allow for various means in which to earn points on ownership.
    2. There are tax benefits that you can claim through specific forms of skills development. Let us show you how.
    3. Long term strategies for enterprise and supplier development ensure you will earn points over several years regardless of unexpected changes to your NPAT.
    4. The Amendment to the Employment Equity Act, which was recently released, has far stricter penalties for employers who don’t take EE seriously. Employers that don’t comply can expect strict enforcement and harsher penalties – fines of up to R2. 7mil or 10% of annual turnover.
    5. You can maximize on the skills development scorecard without having to meet the target spend.
    6. For absorption points you do not have to absorb all the learners trained to claim your skills development. Let us show you how this can be achieved.
    POPIA Compliance We take both your privacy and the POPI Act seriously, and would like to inform you that EconoServices will continue to ensure that all measures are taken to safeguard your personal information. We have put in place measures to ensure compliance with the requirements of the POPI act to prevent and stop the following:
    • No unauthorized access to personal information
    • No damage, accidental loss, misuse or destruction of any personal information on our records
    This will allow us in turn to continuously improve our systems in use and ensure we operationally continue within the legal framework of the act. Should you however, feel you would like to change your consent or information on record please feel free to contact our information officer Dr Muriel Mushariwa. You have the right to the following options in terms of your personal information:
    • Provide any updates such as address changes or contact details
    • To delete or remove your information
    • To inform us to stop contacting you
    Should we not hear from you by 23 July 2021, we will take it that permission has been given to us to continue to retain the information and to continue to communicate with you. Regarding our mailing list: No action is required if you are happy to stay on our mailing list and it will be accepted that you have consented to staying on. If you change your mind at any time in the future, you will always have the option to unsubscribe. Best wishes and keep safe. The EconoServ Team
    17Jun, 2021
    What to Expect from an Employment Equity Inspection
    As we all know, the Department of Labour is constantly conducting inspections throughout the year with designated employers. These inspections are to ensure that the information submitted in the annual Employment Equity Submissions is correct and in line with the Employment Equity Act as well as the EEA Plan of companies. These inspections are done at random, with little to no time to prepare. As a result, we at EconoBEE recommend compiling the Employment Equity file throughout the year, and having it ready for inspection at any point. This will make the inspection process less painful. Here are some of the documents that will need to be in that Employment Equity File:
    • Letter of Assignment – this is to prove that the EE responsibility has been assigned to one or more senior manager(s), as required by Section 24
    • Proof of Consultation with Employees, as required by Sections 16 and 17
    • Proof of Analysis conducted, as required by Section 19
    • EEA 13 – this is your Employment Equity Plan, as required by Section 20
    • Proof of Record Keeping, as required by Section 26
    • If your organization is listed as a Public Company then you will also need to provide Proof of the Publication of your Annual Reports, as required by Section 22.
    While the compiling of an Employment Equity File can be a very administrative and time consuming exercise, EconoBEE is happy to assist with this process. Please feel free to contact us directly for more details, our consultants are ready and willing to assist.
    2Feb, 2021
    Are your skills development goals aligned to your employment equity targets?
    Recently the Parliament’s Portfolio Committee on Employment and Labour has called for public comment on the Employment Equity Amendment Bill. The bill has been described by President Cyril Ramaphosa as a ‘game changer’ for Black Economic Empowerment in South Africa. The Minister of Labour, after consulting with various sectors including the Commission for Employment Equity, will be empowered through the Bill to set numerical employment equity targets for any sector or part of a sector by notice in a gazette. The Labour department has clarified that the notice may set different numerical targets for different occupational levels, sub-sectors or regions. Some of the factors which the Minister will consider when setting sector targets include:
    • The qualification, skills and experience required to be employed in a particular occupational level;
    • The rate of turn-over and natural attrition in a sector;
    • Recruitment and promotional trends within a sector.
    The Employment Equity Act is clear that “suitably qualified” candidates should be appointed.  It is therefore important that designated employers align their skills development goals to their employment equity targets so that, should there be a specific qualification or skill required for a particular occupational level, there is proper alignment. Avoid the pitfalls of non-alignment and let us help you with your skills development planning. 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!   Online Workshops To peruse our 2021 Online Workshop List, please click here
    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:
      1. The black people identified by an enterprise as its shareholders, executives or management are unaware or uncertain of their role within the enterprise.
    One such example is the reported case where the BEE commission issued a final finding of fronting after it received a grievance from the companies’ former employee. It transpired that she was formerly employed as a receptionist but that she left the company after discovering that she had been listed as a 33% shareholder, without her approval or knowledge, and without receiving any dividend in respect of her shareholding. Such fronting is usually uncovered during verification of the measured entity when verification agencies interview the identified “owners” in the business. However, in instances where the measured entity is an EME or QSE and such entities are usually not audited, this becomes problematic.
        1. 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.
    One such example is a QSE company creating another company which will solely be owned by employees. This company then “buys a stake” in the QSE company to the value of 51% making it an automatic level 2 without an audit.
        1. 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.
    One such example was where a white director was earning more than the black director with a ratio of 1:20. This was genuinely concerning to the verification analyst as the black director had been in the same position for over two years, with the same salary, and was also a shareholder. The analyst concluded that this disparity in salary did not make the black shareholder a director, as it went against the principle of equal pay for work of equal value. Let EconoBEE assist you in ensuring that you are not fronting in your pursuit to be BEE compliant. Employment Equity Submissions The year is fast coming to an end and the Employment Equity deadline is looming! Have you completed your Employment Equity submission? Now is the time to do it! Why don’t you call EconoBEE on 011 483 1190 and let us help you with all your Employment Equity, as well as your Skills Development and B-BBEE needs! 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.
    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.