4 questions you need to ask yourself before 2017 ends.
For most entities there are only 6 months left before the end of the current financial year – and only 4 months before the start of the festive season. Before you can even think of going into holiday mode you have to ask yourself the following questions:
- Did I submit my Employment Equity report?
If you are a designated employer it is compulsory to submit an Employment Equity report (EEA2 & EEA4) on an annual basis to the Department of Labour. The window period for submissions opened on 1 September 2017 and the report must be submitted before 15 January 2018.
- Is my skills development strategy on track?
It is a good idea to review your skills development strategy at this point in time. Do you know how much you have to spend on skills development initiatives for black people? Have you registered enough black people on learnerships, internships and apprenticeships? By now you should have a much better idea of what your expected payroll for the year will be. If you haven’t done anything in terms of skills development yet, now will be a good time to start – 6 months will be over before you know it.
- Do I know who my beneficiaries for enterprise- and supplier development will be?
Review your enterprise- and supplier development plans. Make sure your intended beneficiaries will comply with the necessary requirements to qualify as beneficiaries. The beneficiaries must be at least 51% black owned with an annual turnover of less than R50 million (remember that in addition to the above, a supplier development beneficiary must also be a supplier to your entity within the current financial year).
Review your targets for both enterprise- and supplier development and make sure you know how much you have to contribute towards each beneficiary before the end of your current financial year.
- How much do I need to spend on socio-economic development?
Review your targets for socio-economic development and make sure you know how much you have to contribute towards your intended beneficiary organisations before the end of your current financial year. Remember that 100% of the value donated must be used for the sustainable economic development of those beneficiaries and that at least 75% of them must meet the definition of ‘black people’ as per the Broad-Based Black Economic Empowerment (B-BBEE) Amended Codes of Good Practice.
Keep in mind that if you do not have a February year end, you may have even less time to implement your B-BBEE initiatives. Furthermore, if you are being rated in terms of any of the Sector Codes there may be more elements to consider.
If you don’t know how to answer any of the above-mentioned questions, consult with your BEE legal advisor as soon as possible. SEESA will be able to provide you with solutions to all of the above.
ABOUT THE AUTHOR
Bernard du Preez is an admitted attorney who completed his BCom (Law) and LLB degrees at the University of the Free State. Bernard started at SEESA BEE as a legal advisor and currently holds the position of SEESA BEE Provincial Manager at our Cape Town office.