YES B-BBEE Frequently Asked Questions Part 1

Posted on April 16, 2021

Find out how to gain B-BBEE levels with YES.

YES is a business-led collaboration that seeks out ground breaking ways, through innovation and technological best practice, to reignite the economy and give youth a dignified first chance.

The YES 12-month quality work experience equips unemployed youth with a toolkit to be a beacon of hope for their families, households and communities. The CV & reference letter they get at the end of their 12-months gives them a 3 x greater chance of an interview call-back.

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Below you will find the B-BBEE Gazette, Practice Note and Statement of Clarification questions and answers 20 March 2020, finalised in consultation with The Department of Trade Industry and Competition (the dti)

GG: YES Gazette Notice Number 41866  (Published 28/08/2018)
PN: YES Practise Note Gazette Number 41975 (Published 12/10/2018)
SoC: Statement of Clarification (Issued by the dti on 24/02/2020)

Is YES NPC the only entity that a company can register with for B-BBEE recognition for job creation?

Yes. In terms of the Practice Note for B-BBEE recognition, this is explicit.

GG 1.1: The Youth Employment Service (YES) is to provide for, and institute, Broad-Based Black Economic Empowerment (B-BBEE) recognition for YES measured entities and qualification criteria applicable to the B-BBEE recognition for job creation.

PN 1.1: YES measured entities will need to register with the YES non-profit company (registration number: 2017/267641/08) in order to participate within the YES Initiative for monitoring and evaluation purposes of the initiative.

PN 1.2: B-BBEE recognition will only be awarded to YES measured entities that have registered with the YES non-profit company.

What happens if a company is unable to maintain or improve its B-BBEE level?

If at the time of B-BBEE verification, where all other elements have been assessed before awarding of YES B-BBEE recognition, it is identified that the YES measured entity has not maintained or improved their previous B-BBEE status level, they may approach the dti B-BBEE policy unit with justifiable evidence for participation.

GG 2.4: YES measured entities must ensure that they maintain or improve their B-BBEE status level and performance against the targets under the overall scorecard obtained in the year before participating in the YES initiative. Application of this process is done through Paragraph 1.5 of YES Practice Note and correspondence should be sent to B-BBEE_YES@thedti.gov.za

What is the B-BBEE status that needs to be maintained or improved by the company?

The B-BBEE status level that needs to be maintained or improved upon is the B-BBEE status level obtained in the first year of participating under the YES Initiative before YES B-BBEE recognition. This will be the base B-BBEE status level for the second and subsequent years of participation under the YES Initiative (i.e Level 4, Level 5 etc.

What are “new positions” and new jobs?”

The intention behind YES is to create new jobs. While no measurement of this will take place, YES measured entities are expected to create 12-month quality workplace experiences for Black Youth.

GG 6.1: YES measured entities engaging eligible employees in new positions are subject to South African legislation governing Basic Conditions of Employment and Working Conditions.

Can Youth be employed on a part-time contract?

Youth must be employed on a 12-month, fixed term employment contract that complies with the labour legislation, including the LRA and the BCEA. A measured entity may apply the hours of work as per the sectoral determination the entity is regulated by.

PN 1.7: The workplace experience for eligible employees needs to cover a full 12-month period.

Is a company obliged to use the employment contract template provided by YES?

An entity is not obliged to use the YES employment contract template. However, the employment contract must be a 12-month, fixed term employment contract that complies with the labour legislation, including the LRA and the BCEA.

PN 1.7: The workplace experience for eligible employees needs to cover a full 12-month period.

What is meant by a “quality work experience”?

Please refer to the YES quality work experience brochure for more information or contact us to request it.

GG 6.3: YES measured entities must commit to ensuring a quality work experience is provided to the eligible employee insofar as the entity is able to provide it.

PN 1.10: The 12-month quality workplace experience will be monitored by the YES non-profit company to ensure a consistent national standard.

PN 1.12: Placements of Black Youth can be for exempted micro enterprises (EMEs) and qualifying small enterprises (QSEs) including EME and QSE non-profit organisations. However, entities may place eligible employees in entities irrespective of size to ensure a quality work experience is achieved.

What salary should a youth be paid per month?

Employers are required to comply with the Minimum Wage Act, 2018, the relevant labour legislation (including the LRA PN 1.10 and BCEA), as well as any sectoral determination the entity is regulated by. Employers should take consideration of internal salary scales when employing YES Employees. E.g. Where the NMW is R20,76 for each ordinary hour worked, then a youth working 40 hours per month will be entitled to a salary of R3600. Employers should take consideration of internal salary scales when employing YES employees.

PN 1.7: Sectors that are governed by specific employment conditions legislation should be taken into account, but ultimately the eligible employee needs to fulfil a 12-month workplace experience.

What happens if the Company enters into a contract of employment with Youth within the financial year being verfied, but the period of employment of the Youth at time of verification is less than 8 months?

There will be overlapping periods regarding the intake of Black Youth at different points in time, as well as all YES measured entities having different financial year ends. In order to be eligible for B-BBEE recognition, YES Youth need to fulfil eight (8)months of work. Flexibility will be applied for the first year of uptake in order to drive participation. Entities will be able to receive B-BBEE recognition before a minimum of 8 months have been completed. It's important to note that the uptake must take place in the financial year which is used for B-BBEE verification purposes. Furthermore, entities still need to follow through or else risk the potential of having B-BBEE recognition withdrawn.

PN 1.7: The workplace experience for eligible employees needs to cover a full 12-month period. In the event where the eligible employee does not complete a full 12-month period due to unforeseen circumstances, the YES measured entity needs to ensure that at least eight (8) full months have been completed in order to be eligible for B-BBEE recognition. Furthermore, if any eligible employees fall out of the YES initiative due to any circumstances, the YES measured entity will have one (1) month to replace
them in order to be eligible for B-BBEE recognition.

What would qualify as unforeseen circumstances?

Unforeseen circumstances may include resignation, death or misconduct by the Youth etc. Constructive dismissal will not qualify.

PN 1.7: The workplace experience for eligible employees needs to cover a full 12-month period. In the event where the eligible employee does not complete a full 12-month period due to unforeseen circumstances, the YES measured entity needs to ensure that at least eight (8) full months have been completed in order to be eligible for B-BBEE recognition. Furthermore, if any eligible employees fall out of the YES initiative due to any circumstances, the YES measured entity will have one (1) month to replace them in order to be eligible for B-BBEE recognition.

What do companies do in the case of maternity leave during the 12-month work experience?

In terms of BCEA the Youth is entitled to 4 months of unpaid maternity leave. In the 4 months of maternity leave, the company can use their default maternity policy or allow the Youth unpaid maternity leave. The company does not have to extend the contract beyond the 12 months for the 4-month maternity leave not worked by the Youth. However, they still need to remain employed until the end of the contract.

PN 1.7: The workplace experience for eligible employees needs to cover a full 12-month period. In the event where the eligible employee does not complete a full 12-month period due to unforeseen circumstances, the YES measured entity needs to ensure that at least eight (8) full months have been completed in order to be eligible for B-BBEE recognition. Furthermore, if any eligible employees fall out of the YES initiative due to any circumstances, the YES measured entity will have one (1) month to
replace them in order to be eligible for B-BBEE recognition.

Can Youth be absorbed prior to the completion of the 12-month employment term?

The workplace experience for eligible employees must cover a 12-month period. An eligible employee may enter into an employment contract (or simply an employment contract longer than a 12-month period) save that:

  • The eligible employee must still complete the12- month workplace experience on the YES initiative
  • Absorption will only be measured after completion of the 12-month period of employment on the YES initiative. If an eligible employee is on a permanent contract and;
  • A measured entity’s YES target is calculated every 12 months and an eligible employee that has been absorbed will not count towards the measured entity’s new YES target
  • YES B-BBEE recognition can only be awarded based on Absorption Targets after the 12-month contract is completed and not before the 12 months have lapsed

PN 1.6: Due to uptake and difference in measurement periods for YES measured entities, the target for Absorption will not be verified for B-BBEE recognition during the first year of implementation of the YES initiative. Instead, the target for this will be verified when Absorption takes place in the following measurement period.

Absorption is based on the YES entity’s target. Absorption is defined in Schedule 1 of the Amended Codes of Good Practice and the same principles are applicable.

 

Read Part 2 of our FAQ's to gain additional insights into YES.