All business owners have pondered the effect of COVID-19 on the various elements of their business. The effect of the lockdown on B-BBEE compliance is no exception. Many have queried whether the deadlines for B-BBEE expenditure was or will be extended. B-BBEE expenditure, as always, will still need to take place within the applicable financial period. Accordingly, no extensions can be granted. So, what if you spent your Skills Development targets within your financial year but the employees...

In a recent case study done by R Peters from the University of the Western Cape, and V Naicker from the University of South Africa it is clear that SMME’s are potential of great socio-economic significance in employment creation, closing the income inequality gap and alleviating poverty. Many of the recent births of small firms in developed countries may have been induced by poor economic conditions in general, and by high unemployment in particular. Very similar to South Africa we know today,...

If you are a current business owner in South Africa it can confidently be said that the question has crossed your mind “What will happen to your business after the lockdown has been lifted or the pandemic been cleared?” Most Management Teams and Business Owners are experiencing uncertainty pertaining to the outcome of this COVID-19. Not only the outcome in the short-term but the larger effects thereof. One should also keep in mind the timing at which the national lockdown is occurring. Not...

It comes as no surprise that in the midst of the COVID-19 pandemic businesses have been tried and tested, encountering terrible challenges and unfortunately with many barely managing to weather the storm. The state of optimism might be regarded as an unusual expectation right now but the reality is this: The COVID-19 pandemic will pass, we shall overcome this and we shall continue with our respective business operations. Now is as good a time as any to be inventive, resourceful   and...

With the COVID-19 crisis and through enquiries we received from our clients we saw a need to inform clients about the different relief funds available to them: UIFThe Department of LabourFor more information:https://www.ufiling.co.za/docs/COVID19%20TERS%20EMPLOYEE%20FINAL%20USER%20GUIDE.pd SME Debt Relief FundDepartment of Small Business DevelopmentWho is seen as a Small/Medium Business:https://www.gov.za/sites/default/files/gcis_document/201903/423041gon399.pdFor more...

In line with section 8 of The National Disaster Regulations, the Minister of Employment and Labour announced measures relating to the coronavirus and its impact on UIF contributions. The Unemployment Insurance Fund will assist employees affected by the current lockdown throw Temporary Employer/Employee Relief Scheme (TERS) and other benefits. Evidence/payroll of the last three month’s salaries needs to be submitted as part of the TERS application. In order to comply with this requirement, an...

In terms of the B-BBEE Codes, the preferential procurement element encourages procurement from suppliers that have a valid and compliant B-BBEE Certificate. It is, however, necessary to consider the treatment of third-party procurement spends. A third party is a person who is indirectly involved in a transaction between two parties or entities but is not the principal party to the transaction. An example of third-party procurement would be as follows: Entity A is the airline; Entity B is the...

Sourcing B-BBEE certificates are important for your B-BBEE score as it is taken into account when your Preferential Procurement score is calculated by a B-BBEE verification agency. When sourcing these documents, it is important to make sure that you receive a valid B-BBEE certificate from your suppliers. If the certificate is not valid, the verification agency will not take that certificate into account when your Preferential Procurement score is being calculated. Here is a list of things that...

And we are off!  The New Year has started and you need to start attending to our B-BBEE to ensure you obtain the level required for your entity.  One of the most important concepts in B-BBEE, which you have to remember, is that all financial contributions towards the following elements need to be made before your financial yearend: Socio-Economic Development;Enterprise Development;Supplier Development;Skills Development; Seeing as most companies have a February Financial year-end it...