The Event, Technical and Production Services Industry B-BBEE Sector code Scorecard
CODE SERIES ETPSI-300 – MEASUREMENT OF SKILLS DEVELOPMENT, part 1 of 2
This is the seventh article in a series discussing the Event, Technical, and Production Services Industry B-BBEE Sector Code Scorecard.
In this article, we have listed the basics of Code Series ETPSI-300: MEASUREMENT OF SKILLS DEVELOPMENT
OBJECTIVES OF THIS STATEMENT
1.1 Specify the scorecard for measuring the Skills Development Element of B-BBEE;
1.2 Define the key measurement principles associated with the Skills Development Element;
1.3 Indicate the formula for measuring the Skills Development Element.
THE SKILLS DEVELOPMENT ELEMENT SCORECARD
2.1 The following table represents the criteria used for deriving a score for Skills Development under this Statement:
2.2 The compliance targets for 2.1.1.1, 2.1.1.2, 2.1.2.1, and 2.1.2.1 of the Skills Development scorecard are based on the overall demographic representation of black people as defined in the Regulations of the Employment Equity Act and Commission of Employment Equity Report as amended from time to time.
2.3 In determining a Measured Entity’s score, the targets should be further broken down into specific criteria according to the different race sub-groups within the definition of black in accordance with the Regulations of Employment Equity Act and Commission of Employment Equity Report requirements on equitable representation and weighted accordingly.
KEY MEASUREMENT PRINCIPLES
3.1 The following criteria must be fulfilled for the Measured Entity to receive points on the Skills Development Element scorecard;
3.2 Workplace Skills Plan, an Annual Training Report, and a Pivotal Report which are SETA-approved; and
3.2.1 Implementation of Priority Skills programme generally, specifically for black people.
3.2.2 The 5% compliance target under paragraph 2.1.1.1 above includes external training expenditure for unemployed black people.
3.2.2 Initiatives implemented under paragraph 2.1.1.1 cannot be counted under paragraph 2.1.1.2 above and vice versa.
3.2.3 A trainee tracking tool must be developed for the Measured Entity to score under paragraph 2.1.3 above.
3.2.4 If less than 100% of the trainees are absorbed under paragraph 2.1.4, the percentage achieved or absorbed will be recognised.SUBMINIMUM AND DISCOUNTING PRINCIPLE
4.1 A Measured Entity must achieve a minimum of 40% of the total weighting points excluding bonus points set out in the Skills Development Element.
4.2 Non-compliance to the threshold targets will result in the overall achieved B-BBEE status level being discounted in accordance with paragraph 3.4 of Statement 000.
GENERAL PRINCIPLES
5.1 Skills Development must contribute to the achievement of the country’s economic growth and social development goals that will enrich the creation of decent work and sustainable livelihoods.
5.2 Promote the development of the events and audio-visual production industry.
5.3 Support ‘Professional, Vocational, Technical and Academic Learning programs, achieved by means of professional placements, work-integrated learning, apprenticeships, learnerships and internships, that meet the critical needs for economic growth and development.
5.4 Strengthen the skills and human resource base by encouraging the support of skills development initiatives with an emphasis on skills development and career pathing for all working people in order to support employment creation.
5.5 Skills Development Expenditure includes any legitimate expenses incurred for any Learning Programme offered by a Measured Entity to black people evidenced by an invoice or appropriate internal accounting record.
5.6 Skills Development Expenditure arising from Informal and workplace Learning Programs or from Category F and G Learning Programs under the Learning Programs Matrix cannot represent more than 25% of the total value of Skills Development Expenditure.
5.7 Legitimate training costs such as accommodation, catering, travelling, and the cost to the Measured Entity of employing a Skills Development facilitator or a training manager (non-exhaustive) cannot exceed more than 15% of the total value of Skills Development Expenditure. This does not apply to Skills Development Expenditure recognized in paragraph 2.1.1.2 above.
5.8 Salaries or wages paid to an employee participating as a learner in any Learning Programme constitute Skills Development Expenditure if the Learning Programme is a Learnership, Internship. and Apprenticeship
(Category B, C, and D) on the Learning Programme Matrix or a stipend linked to a bursary programme in terms of paragraph 2.1.1.2 above.
5.9 Salaries or wages so paid to the Employee are only claimable for the period over which that Employee was participating in the Learnership, Internship, or Apprenticeship during the measurement period.
5.10 Expenses on scholarships and bursaries for Black people do not constitute Skills Development Expenditure if the Measured Entity can recover any portion of those expenses from the employee or if the grant of the
scholarship or bursary is conditional. A bursary or scholarship scheme is a grant made to or for students who are registered at educational institutions established by or registered with the Department of Basic Education or the Department of Higher Education & Training. Examples of legitimate training costs for a bursary or scholarship include: payment of school, college, or university fees, or a portion thereof; funding for textbooks or other learning materials; and funding for subsistence or accommodation during the period of study. Despite the above, if the right of recovery or the condition involves either of the following obligations of the employee, the expenses are recognisable:
5.10.1 The obligation of successful completion of their studies within the time period allocated; or
5.10.2 The obligation of continued employment by the Measured Entity for a period following the successful completion of their studies is not more than the period of their studies.5.11 Mandatory sectoral training does not qualify as a skills development contribution i.e. health and safety in the construction sector (non-exhaustive list).
5.12 Training outside the country in line with the Learning Programme Matrix under annexure ETPSI-300 (A) is measurable if it meets the South African Qualification Authority requirement for recognition.
LEGITIMATE RECOGNISABLE TRAINING EXPENSES
6.1.1 costs of training materials;
6.1.2 costs of trainers;
6.1.3 costs of training facilities including costs of catering;
6.1.4 scholarships and bursaries;
6.1.5 course fees;
6.1.6 accommodation and travel; and
6.1.7 Administration costs such as the organization of training including, where appropriate, the cost to the Measured Entity of employing a Skills Development facilitator or a training manager.
A further article will discuss the “MEASUREMENT OF SKILLS DEVELOPMENT INDICATORS”, applicable annexures, and formulae.
