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...

The amended financial sector codes, socio-economic development and consumer education: The Amended Financial Sector Charter was gazetted on 01 December 2017. Socio-Economic Development consists of charitable donations as well as Consumer Education Contributions.  Charitable donations must be made to Organizations with at least 75% Black Beneficiaries and the target for a QSE as well as a Generic Entities is 0.6% of the annual Net Profit After Tax (NPAT).   Targets for Foreign branches of...

In the case of Peel & Others / Hamon J & C Engineering (Pty) Ltd & Others (2012/00994) the South Gauteng High Court dealt with this issue amongst others. For our purpose, we will only deal with the above issue. Summary of facts: In order to improve its BEE scorecard to obtain a government tender, Hamon & Cie (“the company”) entered into a Shareholders Agreement with two black female employees.In terms of the Shareholders Agreement 13% shares were sold to each of the two...

During April 2019 the B-BBEE Commission declared that a majority of transactions involving broad-based trusts deviates from the law and do not constitute genuine and effective black ownership.   These transactions involving trusts, BBOS and ESOPs did not meet the rules set in Statement 100 Annexes (B)-(D), and thus cannot be recognised for ownership points. The commission has informed those companies not complying to rectify their ownership structures and undergo a re-evaluation on...

The sub-element Preferential Procurement is important as points are awarded based on procuring from companies having good B-BBEE ratings. On most scorecards, it is noticeable that a large number of points are allocated to the sub-element Preferential Procurement. Therefore, the person/s appointed to collect suppliers B-BBEE certificates and/or sworn affidavits must ensure that the information received is correct. Below are some guidelines to assist your company when claiming points for the...

It is always important for a business to keep their B-BBEE up to date, not only by having a valid B-BBEE Certificate but also by doing the necessary financial planning and budgeting for the renewal of the B-BBEE certificate. Most entities have a February financial year-end which means that they are in the middle of the current financial year.  Keeping this in mind it is important to plan and ensure that the correct amounts spend on the following B-BBEE elements: Skills Development;Enterprise...

The department of Trade and Industry (DTI) published notice 306 of 2019 Amended Code Series 000, Statement 000 in terms of Section 9 (1) of the Broad-Based Black Economic Empowerment Act 2003, (Act No. 53 of 2003) as amended by Act 46 of 2013 for implementation within 6 months from date of Gazette and replace Amended Code Series 000, Statement 000 within Gazette 36928 with the following Amended Code Series 000, Statement 000. The basis for measuring B-BBEE initiatives under the Codes is the...