B-BBEE Compliance and Learnerships

As an entrepreneur, you want your business to expand and be more successful, right?  Of course, the answer is a resounding “yes”, but in addition to providing a good product or service and knowing how to promote it, there’s another way in which you can procure new business and, ultimately, take your company to the next level.

Broad-Based Black Economic Empowerment (B-BBEE).  Being B-BBEE-compliant is vital when doing business in South Africa. With the significant changes in the B-BBBEE codes recently, it has become more difficult to achieve Level 4 status. The new codes require Black ownership, skills development and enterprise and supplier development as priority fundamentals. Furthermore, an achievement of 40% is required on each field

With the new codes, one of the most critical aspects is skills development. It is now deemed as a priority element and calls for business to spend 6% of their annual payroll on skills development for Black staff. This carries a whopping 9 points on the scorecard. A further 6 points are awarded if you have registered learners in place. The benefits of taking in learners or offering learnerships are that you are truly enhancing the South African workforce by offering people a skills programme and workplace knowledge, while you attain a new vibrant workforce. The learner’s annual salary can be included to form part of the 6% spend on training, so it greatly benefits the worker.

According to the Department of Trade and Industry, it’s is vital for business owners to concentrate on continual upskilling of their workforce. The B-BBEE Codes are clear in the objectives, and include the following:

  • to encourage employers – to use the workplace as an active learning environment;
  • to provide employees with the opportunities to acquire new skills;
  • to provide opportunities for new entrants to the labour market to gain work experience;
  • to employ persons who find it difficult to be employed;
  • to encourage workers to participate in learning programmes (internships, learnerships and apprenticeships); and
  • to improve the employment prospects of persons previously disadvantaged by unfair discrimination and to redress those disadvantages through training and education.

So, it’s clear that internal staff development is key, and this is where learnerships come into play. They offer a win-win situation for all parties: employers get a more skilled and empowered work force, while the employees are equipped with new skills.

For those business owners in the legal field, look no further than The Institute of Legal Practice, Development and Research. The Institute of Legal Practice provides nationwide training via a blended medium of teaching, which includes online self-study sessions and face- to- face contact with knowledgeable lecturers with valuable experience. By providing those who sign up with a solid theoretical underpinning that is deeply rooted in practical application, we push the boundaries of human knowledge. It’s an ideal way to empower your employees and add value to your company. The Institute can further help you with registering and maintaining a learnership programme. Talk to us to find out more.
Ultimately, it is all about the greater goal: to work towards a truly transformed and empowered South Africa.

You can find out more about what we offer here.

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