Who is the B-BBEE Commission?
We are a regulatory body established as an entity within the administration of the Department of Trade and Industry (“the dti”) by the Broad-Based Black Economic Empowerment Act 53 of 2003, as amended by Act 46 of 2013 (“the B-BBEE Act”), to oversee the implementation of the B-BBEE Act and investigate violation.
Jurisdiction of the B-BBEE Commission
We operate within the dti with jurisdiction throughout the Republic, and be impartial and perform its functions without fear, favour or prejudice, across all provinces.
B-BBEE Clarifications
In terms of section 13F (1) (a) of the B-BBEE Act, we are mandated to oversee, supervise and promote adherence with the B-BBEE Act in the interest of the public. In so doing, we must increase knowledge on the nature and dynamics and promote guidance to the public on the interpretation of the B-BBEE Act and Codes of Good Practice, and clarifications form part of our advisory services.
Nature of clarification provided
We have a mandate to provide clarification on all aspects of the B-BBEE, which includes the generic codes of good practice and the various sector codes. These are some of the issues that have been raised with us.
Skills Development
Unemployed learner as per the Codes ‘means a learner that was not in the employment of the employer and party to the learnership agreement concerned when the agreement was concluded. The employer and learner must therefore enter into a contract of employment. Refer to the Skills Development Act’.
The objectives of Code Series 300 are to increase investments for human resource and skills development for black people, as part of the broader government objective. In keeping with this objective the Codes have provided for the training of both black employed and black unemployed.
Therefore, black unemployed people trained under Para 2.1.2.1 of the scorecard cannot be recounted again under 2.1.2.2. This will amount to misrepresentation of B-BBEE status and may constitute an offence in terms of section 13O (1) (a) and (b) of the B-BBEE Act.
In terms of Para 5.3 and 5.4 of Code Series 300 the 15% cap is applicable to the total value of the skills development expenditure. This means that if the measured entity has spent R100 000.00 for informal training and R50 000.00 for accommodation towards black people, the 15% will apply to the total value of each amount.
Where a QSE in terms of the Skills Development Act qualifies to contribute the 1% levy, it will need to have SETA approved WSP before implementing the skills development element. But if exempted from the 1% levy, the QSE will only have to develop a skills development plan for implementing the skills development element and produce the required proof during measurement for recognition of points.
Expenses on scholarships and bursaries for employees do not constitute Skills Development Expenditure if the Measured Entity can recover any portion of those expenses from the employee or if the grant of the scholarship or bursary is conditional. Despite the afore going, if the right of recovery or the condition involves either of the following obligations of the employee, the expenses are recognisable:
- the obligation of successful completion in their studies within the time period allocated; or
- the obligation of continued employment by the Measured Entity for a period following successful completion of their studies is not more than the period of their studies