YES B-BBEE Frequently Asked Questions Part 2

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)

Can absorption be extended to Black youth establishing their own entity?

Yes.

SoC (dti): Absorption can be extended to Black Youth establishing their own entity with the measured entity providing support. The support will be proven by obtaining the company registration documents, procurement contracts, enterprise and supplier development agreements amongst others, to identify that absorption has been met in the form of the Black Youth establishing their own entity.

If youth are being sponsored and placed at an SMME, which entity is required to absorb the Youth in order to qualify for B-BBEE recognition? The sponsoring company or the hosting SMME?

Absorption is based on principles embedded in the Amended Codes of Good Practice. Absorption can occur within the YES measured entity, or any other entity. The responsibility rests with the YES measured entity to provide documentation that proves that Absorption has taken place according to the prescribed targets set out in the Gazette.

PN 1.8: Absorption can only take place after the 12-month completion of the workplace experience and the target is based on the YES Targets for YES measured entities. If Absorption is identified at the time of the B-BBEE verification, B-BBEE recognition
will be awarded. Absorption is defined in Schedule 1 of the Amended Codes of Good Practice and the same principles are applicable.

What is the consequence for B-BBEE recognition if neither the sponsor or the SMME absorb the Youth?

YES measured entities still need to follow through, or else risk the potential of having B-BBEE recognition withdrawn.

PN 1.8: Absorption can only take place after the 12-month completion of the workplace experience and the target is based on the YES Targets for YES measured entities. If Absorption is identified at the time of the B-BBEE verification, B-BBEE recognition
will be awarded. Absorption is defined in Schedule 1 of the Amended Codes of Good Practice and the same principles are applicable.

If youth are employed as part of a learnership, internship or apprenticeship can the same Youth qualify as part of a company’s YES target headcount?

No. The youth in such a scenario would not be unemployed and as such does not qualify for YES registration. Also no double counting.

PN 1.9: The 12-month workplace experience is not a learnership, internship or apprenticeship programme.

Can Youth employed as part of a company’s participation in YES also participate in a 4. What does full-time employment mean? learnership, internship or apprenticeship?

No. The Practice Note is explicit regarding this. Initiatives for YES are separate from learnerships, internships or apprenticeships. No double counting is permissible.

PN 1.9: The 12-month workplace experience is not a learnership, internship or apprenticeship programme.

If Youth are employed as part of a learnership, internship or apprenticeship can the company convert the Youth to count as a YES Youth?

No. the Practice Note is explicit regarding this. Initiatives like YES are separate from learnships, internships or apprenticeships.

PN 1.9: The 12-month workplace experience is not a learnership, internship or apprenticeship programme.

Must Youth remain unemployed from the time of registration with YES until time of placement?

Black Youth need to be unemployed at the time of registration by the Black Youth. This is a self declaration by the Black Youth.

PN 1.14: B-BBEE recognition will only be applicable for the creation of jobs under the YES initiative for eligible employees who are unemployed at the time of registering with the YES initiative.

What happens if Youth find employment one day after registering with YES, but still want the option to be placed in a YES job?

At the time of registration, the Black Youth needs to be unemployed.

PN 1.14: B-BBEE recognition will only be applicable for the creation of jobs under the YES initiative for eligible employees who are unemployed at the time of registering with the YES initiative.

If at verification when the 12-month work experience is still unfolding and the company cannot demonstrate absorption, what happens?

In the event that a measured entity has met the uptake target at the time of verification, but has not met the absorption target due to the 12-month quality workplace experience still unfolding, the entity needs to provide verification evidence that indicates commitment to absorb youth once the YES employees complete the 12-month workplace experience and are absorbed. Once absorption takes place, the entity will provide the verification evidence to the agency within one month to show absorption has been met. Failure to do so may lead to the retracting of the B-BBEE certificate and report by that B-BBEE verification agency. The responsibility of ensuring that absorption is met, lies with the measured entity and the B-BBEE verification agency

SoC(dti): Verifiable evidence would include, but is not limited to, samples of certified ID copies, samples of employee contracts that meet the definition of absorption and interviews.

What evidence is required to confirm that Youth are unemployed?

This is a self-declaration by the Black Youth.

PN 1.14: B-BBEE recognition will only be applicable for the creation of jobs under the YES initiative for eligible employees who are unemployed at the time of registering with the YES initiative.

Is YES a verification agency?

No

What evidence must a measured entity gather for verification?

The YES Practice Note provides a broad overview of the types of documentation that will be required at the time of B-BBEE verification (not limited to). Verification is however not static, the quality of evidence presented would determine whether or
not additional evidence is required. Please see the YES verification checklist, or contact us to request it.

PN 5: Please refer to Paragraph five of the YES Practice Note.

If a company is participating for the second year, must the previous year or new year’s headcount be used?

The measured entity must use the headcount as at the last financial year-end.

PN 4: Please refer to Paragraph four of the YES Practice Note.

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If, for operational reasons, a company’s headcount decreases in the year of participation in YES, how will this affect its target?

The measured entity’s headcount provided at the time that it registers to participate in the YES initiative, being the headcount as at the last financial year-end, is used to determine target for B-BBEE recognition. A change in the headcount during the period of participation in the YES Initiative will not affect the target for B-BBEE recognition.

A change in the headcount during the period of participation in the YES Initiative will not affect the target for B-BBEE recognition.

Can you participate in the YES programme if you have zero net value ownership?

Yes. This is possible based on the Average Sub-minimum being met by the measured entity.

PN 3: Refer to paragraph three of the YES Practice Note for the calculation of sub-minimums.

Can Youth participate in YES multiple times if they have completed one 12-month quality workplace experience?

No. The objective is to provide as many Black Youth as possible with a full 12-month quality workplace experience.

What happens if a Youth participates for less than 8 months and wants to participate in the YES programme at another organisation?

This is possible as each Black Youth should be afforded an equal opportunity for a full 12-month quality workplace experience. This means that the first company will not get recognition if the youth spend lessthan 8 months with them?

A new 12-month quality workplace experience contract will be signed.

If a company was using a sworn affidavit and their status moves from an EME to a QSE or QSE to a Generic what level do they need to maintain or improve upon?

The measured entity needs to maintain its previous B-BBEE Status Level irrespective of measurement changes brought about by thresholds or sector codes. The practice notes provide for the dti to approve for company participation if the BEE level changes due to e.g jump from EME to Generic.

If a company is non-compliant can they participate?

The measured entity would need to at least achieve a Level 8 before YES B-BBEE recognition is awarded.

PN 1.5

Can Youth be 35 at the time of participating?

Yes, provided that the YES-contract commences before his/her 35th birthday.

GG 4: 4.1Only individuals who meet the below criteria are eligible for participation under the YES Initiative for B-BBEE recognition:
4.1.1 are between the ages of 18 and 35.
4.1.2 meet the definition of “Black.”

What happens if a Company has a negative NPAT?

The target can still be calculated by utilising the industry norm calculation.
PN 4: Refer to paragraph four of the Practice Note.

Can a Company participate if they have been trading for less than a year?

Yes. PN 4: Refer to paragraph four of the Practice Note.

Is there an acceptable margin/buffer for drop-offs on completion?

In the event that the participating YES Youth do not complete the programme, a 5% margin will be acceptable in order for the measured entity to receive YES B-BBEE recognition.

SoC (dti): For example, if the measured entity has a target of 3 of 200 YES employees and if 10 (200 x 5%) of the YES employees do not complete the 12-month period due to any unforeseen circumstances, the measured entity will still be able to receive B-BBEE recognition, provided that the target was met in the beginning of participation under the YES initiative.

It is important that the YES measured entity meets the calculated targets with consideration of the 5% allowance in order to receive B-BBEE recognition.

If any YES Youth employees fall out of the YES initiative due to any circumstances and above the 5% margin and before completing 8 months of employment, the YES measured entity will have one (1) month to replace them in order to be eligible for B-BBEE recognition.

Can Companies that fall under the Scope of the Transport Sector Codes participate in YES??

Yes.

SoC (dti): It is clarified that the requirements under 2.1, 2.2 and 2.3 of the YES Initiative Gazette issued under Amended Code Series 000, Statement 000 of the Amended B-BBEE Codes of Good Practice Gazette Notice Number 41866 is not applicable to
measured entities that fall under the scope of the 2009 Transport Sector Codes of Good Practice Gazette Notice Number 32511.

Can the salaries of the YES Employees be claimed under skills development or relevant sector codes?

No. SoC (dti)

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