It is important to note that Skills Development is a priority element. This means that if the subminimum of 40% of the total points isn’t reached, the Measured Entity will be penalised by being discounted a level.
If a Measured Entity is serious about obtaining a BEE score, they will have to comply with the Skills element, seeing that it accounts for roughly 25% of the total scorecard.
The problem Measured Entities face regarding the target of the skills element is how time-consuming and expensive it can become. They may not have enough employees to spend the necessary amounts on, or their employees have been with them for years, and they do not require any further training. In these situations, if a Measured Entity only focuses its efforts on training employees, it will become hard and tedious and sometimes impossible for small companies to find candidates to train and reach their target in time. That is why the amendments to the code, indicating that training can be done on black people, really helps the entities with their Skills Development.
Learnerships might prove to be a useful option for Skills Development. Learnerships will enable an entity to obtain the most points with the most benefits in terms of Tax Rebates etc.
This makes the planning of annual training easier, more convenient and more focused. Should the Measured Company be rated as a Generic or has a larger training target, the plan could be adapted and still be a first option. A Measured Entity can gain Tax rebates, and they can also claim a fraction of their SDL for the training they provided. Bringing this into consideration, the actual cost to the company is significantly lower if spent correctly.
It is a good starting point to determine the Measured Entities total Skills target in Rand value by consulting with a BEE legal advisor. This needs to be done early on in the year to gain maximum benefit. As BEE legal advisors, our job is to determine if the Measured Entity’s spend is on track to reach their required target, and if not, what could we do to assist in reaching their target as effectively as possible.
Contact your SEESA BEE legal advisor for more information on learnerships and how SEEA can assist your business. SEESA Skills and SEESA Learnerships are adequately set up to equip your business with the tools and solutions you may require to address the skills element conveniently.
About the Author:
Lourens Odendaal is a Labour and BEE Legal Advisor at the SEESA George branch. He obtained his LLB at the University of the Free State, whereafter he completed his articles and was admitted as an Attorney in the High Court of South Africa, Free State Province.
References:
Broad-Based Black Economic Empowerment Act 46 of 2013 [‘B-BBEE Act’]