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The Youth Employment Service (Y.E.S.) Initiative was gazetted by Minister Davies on the 28th of August with immediate effect. This initiative is the product of the private sector engaging with government to find workable solutions to South Africa’s youth unemployment dilemma.  Simplified, the Y.E.S. Initiative enables up to two B-BBEE levels of enhanced B-BBEE status recognition if certain youth job creation targets are met.

Key aspects of the final legislation:

  • Companies can start to implement immediately
  • The previously proposed pre-requisite of Skills Development bursary spend of 2.5% of leviable amount is no longer in place (making Y.E.S. more affordable and feasible)
  • Companies can increase their BEE recognition level:
    • 1 level for meeting the youth employment target and 2.5% absorption
    • 1 level +3 points for 1.5 x youth employment target and 5% absorption
    • 2 levels for doubling the youth employment target and 5% absorption
  • The youth employment target is based on the higher of:
    • 1.5% of headcount
    • 1.5% of NPAT / R55,000; or
    • As determined by a table based on revenue
  • Eligible participants are:
    • Between the ages of 18 and 35; and
    • Meet the definition of Black people (South African Coloured; Indian; African)
  • Companies need to maintain or improve their previous years BEE rating
  • Existing employees can’t be replaced
  • Where measured entities are unable to create a sufficient number of new jobs to meet their targets, they may sponsor new jobs in EMEs or QSEs
  • Measured entities will be able to claim up to 50% of their informal skills development spend on Y.E.S. employees as Informal Training under Skills Development

Transcend has set up a Y.E.S. division to help you:

  1. Calculate your targets
  2. Decide on the optimal BEE combination of initiatives to increase up to 2 levels
  3. Recruit Y.E.S. candidates
  4. Host Y.E.S. candidates
  5. Provide work readiness training programmes
  6. Build absorption plans


This article was written by
Shaun Smit. Should you require more information on Transcend’s service offerings, please do not hesitate to contact us.

© Copyright 2018. Transcend Group. All Rights Reserved.

UPCOMING T3 BREAKFAST SESSIONS

Join us for the Y.E.S. Initiative – enabling up to two levels of enhanced BEE recognition

Transcend invite you to join us at our breakfast session where we share our experiences, learnings and high-level strategy on the newly gazetted Y.E.S. Initiative. See below for details. This is an open discussion on the GAZETTED Y.E.S. INITIATIVE released 28 August 2018. We will assist you to prepare for audit, implement a Y.E.S plan and measure your impact to realise the two BEE levels. (the possible impact of the Y.E.S programme on your BEE scorecard…)

JOHANNESBURG

EVENT DETAILS:

Date: 11 September 2018
Time: 8:30am until 10:30am
Location: Transcend Offices (21 Scott Street, Waverley, Johannesburg 2090)
Cost:
R750.00 (seats are very limited) 

CAPE TOWN

EVENT DETAILS:

Date: 12 September 2018
Time: 9:30am until 11:30am
Location: Venue TBC
Cost: R 750.00 per delegate (excl. VAT)
(seats are limited)

CAPE TOWN

EVENT DETAILS:

Date: 17 October 2018
Time: 9:30am until 11:30am
Location: Venue TBC
Cost: R 750.00 per delegate (excl. VAT)
(seats are limited)

Access the gazette here:

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