Are Learnerships Compulsory in New BBBEE legislation 12

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Hi All

My BBBEE advisor informed the training team that according to the new BBBEE legislation learnerships are now compulsory. Is this true or did she just misinterpret something.

Looking forward to your responses.

Thank you.

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12 thoughts on “Are Learnerships Compulsory in New BBBEE legislation”

  • Janelle Gravett

    Your comment is very interesting as I was advised by a very big corporate company that they had been told by their BEE agent that Learnerships and Apprenticeships could NOT be claimed for BEE points!!

    Who is giving the incorrect or correct information?!

  • Jacques de Villiers

    Hi Lerato

    I hope the following helps:

    Hypothesis: Company A employs 50 people. It has a turnover of R20M, a Payroll of R5M and a NPAT of R5M

    B-BBEE points available for Skills Development

    (Skills Development is a Compulsory Area of the Generic Scorecard and companies who do not achieve 40% (8 points) in this Area will be penalised by one level)

    Impact on Comp. A
    1. 8 Points if 6% of Payroll is spend on any training for black employees

    R300 000
    1. 2.    4 Points if 0.3% of Payroll is spend on training for disabled black employees

    R15 000
    1. 3.    4 Points if 2.5% of Employees are Black Learners on Learnerships or Apprenticeships

    2 Learners
    1. 4.    4 Points if 2.5% of Employees are Previously Unemployed Black Learners (PUBL) on Learnerships or Apprenticeships

    2 Learners

    20 POINTS (+5 Bonus Points if 100% of PUBL are absorbed)

     

     Jacques

  • Keegen Chetty

    Please be careful when consulting with BEE verification agencies for the following reasons:

    1. Most are waiting for guidelines, so what they say now and what they actually do can be very different. Don’t think that you will be able to hold them to what they say.
    2. Due to the fact that it will be a criminal offence to misrepresent or Front – BEE verification Agencies will be hesitant to award points.
    3. If mandatory training is claimed for training spend eg First Aid and Health and Safety by the training manager, it can be considered misrepresentation and the verification agency may cancel they verification – training manager is liable .
    4. Under the new codes, I don’t think that BEE verification agencies will except Misinterpretations.

    Aslo a key part of the skills development scorecard is that companies can no longer just spend money on African males and African Females, You will definitely not obtain the minimum 8 points.

     

    Keegen

     

  • Egbert van Baalen

    Hi Deon, I agree that the new codes are riddled with mistakes One huge mathematical mistake is the formula quoted in the codes to calculate the B-BBEE Skills Development score. I will be very interested in feedback from your meeting with DTI.

    Lerato, yes your B-BBEE advisor is just misinterpreting something. According to the current codes only the number of unemployed learnerships (SD-act article 18(2) learners) count towards the scorecard, apart from the money spend on skills development components. In the new codes the number of employed (SD-act article 18(1) learners) and unemployed learners now both contribute a maximum of 4 points towards the skills development score card. On-top off you can get a maximum of 5 bonus points or a portion of it for unemployed learner absorption. The money spend portion on skills development between the old and new codes also change significantly, specifically in terms of what may be included and what may not be included as skills spend. That is another long story.   

  • Dr. Deon Landmann

    Lynel: Hehehehehe! The QCTO. Now that’s another ball-game… They admitted to me that it’s a plane being built, while in flight… They can’t run Learnerships, only “quality control” the material… Nevertheless, we will assist and support them how and where we can…

    I will put up a link to the relevant documents on the new BBBEE codes of 11/10/2013 if you are interested.

  • Lynel Farrell

    Hi Deon, your input will be highly appreciated, we all need information on this, and I think that many members will be absolutely pleased with getting more information.

    Now, I wonder of the QCTO will also be running the learnerships (on what qualifications, I am not sure ……)

  • Dr. Deon Landmann

    Hi Lerato,

    It is not that Learnerships are compulsory, although they do take preference and figure very prominently in the new codes. There are different “weightings” on different types of training. It would actually take a whole discussion to explain everything. I have drawn up a shortened report that is currently used by BUSA, NEDLAC and others. You are more than welcome to make contact with me, and we can discuss.

    It is also important to note that these new codes are riddled with mistakes and makes itself open to various interpretations. This is also highlighted in the said report. As a matter of fact, we are having a meeting tomorrow (Tuesday 09/09/2014) with DTI and others to discuss and see if we can’t get clarity on this.

    I will gladly give feedback on the meeting and outcomes to those interested.

  • Heidi D Edwards

    Hi Lerato,

    Your enquiry regarding ‘compulsory Learnerships’ under B-BBEE bears reference.

    Be careful with the word ‘compulsory’ as there is a plethora of criteria attached to the Codes of Good Practice that take effect in April 2015 (+ 1-year transitional period).

    One criteria to consider is that for large enterprises the Skills Development element will be a compulsory element and such an enterprise must reach 40% of the target to avoid discounting.

    That notwithstanding – Learnerships are very prominent in the new Codes.  There is a lot more to it than what I have written here – you should meet with a B-BBEE Consultant or an ISDF to gain more clarity.