Events, Technical & Production Services Sector Draft BEE Code – CODE SERIES ETPSI-300: MEASUREMENT OF SKILLS DEVELOPMENT

Legislation:

BEE Act, as amended

BEE Codes of Good Practice, as amended

Events, Technical & Production Services Sector Draft BEE Code

On 30 September 2021, stakeholders from the Events, Technical & Production Services Sector (ETPS) were invited to the finalisation of the Sector Transformation B-BBEE Code, by attending one of 5 webinars.

This is a series of articles related to the BEE principles of the Events, Technical & Production Services Sector Draft BEE Code. Please read the prior articles of the draft code too for further information.

OBJECTIVES OF THIS STATEMENT

Specify the scorecard for measuring the Skills Development Element of BBBEE;

Define the key measurement principles associated with the Skills Development Element;

Indicate the formula for measuring the Skills Development Element.

THE SKILLS DEVELOPMENT ELEMENT SCORECARD

The following table represents the criteria used for deriving a score for Skills Development under this Statement:

The compliance targets for above for 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.

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

The following criteria must be fulfilled in order for the Measured Entity to receive points on the Skills Development Element scorecard:

Workplace Skills Plan, an Annual Training Report and Pivotal Report which are SETA approved; and Implementation of Priority Skills programme generally, and more specifically for black people.

The 5% compliance target in the above table (2.1.1.1) includes external training expenditure for unemployed black people. Initiatives implemented in the above table (2.1.1.1) cannot be counted under paragraph 2.1.1.2 and vice versa.

A trainee tracking tool has to be developed in order for the Measured Entity to score under paragraph 2.1.3 in the above table. If less than 100% of the trainees are absorbed under paragraph 2.1.3, the percentage achieved or absorbed will be recognised.

SUB-MINIMUM AND DISCOUNTING PRINCIPLE

A Measured Entity must achieve a minimum of 40% of the total weighting points excluding bonus points?(40% of the 20 points)?set out in the Skills Development Element. Non-compliance to the threshold targets will result in the overall achieved B-BBEE status level being discounted.

GENERAL PRINCIPLES

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.
2. Promote the development of the events and audio-visual production industry.
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.
4. Strengthen the skills and human resource base by encouraging the support of skills development initiatives with an emphasis on skills development and career path for all working people in order to support employment creation.
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.
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 20% of the total value of Skills Development Expenditure.
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.
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.
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.
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 includes: payment of school, college or university fees, or a portion thereof; funding for textbooks or other learning materials; funding for subsistence or accommodation during the period of study.

If the right of recovery or the condition involves either of the following obligations of the employee, the expenses are recognisable:

The obligation of successful completion in their studies within the time period allocated; or

The obligation of continued employment by the Measured Entity for a period following successful completion of their studies is not more than the period of their studies.

1. Mandatory sectoral training does not quality as skills development contribution, an example being health and safety in the construction sector.
2. Training outside the country in line with the Learning Programme Matrix under annexure ETPSI-300 (A) – this annexure to be discussed in the next article – is measurable if it meets the South African Qualification Authority requirement for recognition.

LEGITIMATE RECOGNISABLE TRAINING EXPENSES

costs of training materials;

costs of trainers;

costs of training facilities including costs of catering;

scholarships and bursaries;

course fees;

accommodation and travel; and

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.

This concludes part 1 of CODE SERIES ETPSI-300: MEASUREMENT OF SKILLS DEVELOPMENT of the Events, Technical & Production Services Sector Draft BEE Code.

The next article will deal with part 2 of CODE SERIES ETPSI-300: MEASUREMENT OF SKILLS DEVELOPMENT and specifically MEASUREMENT OF SKILLS DEVELOPMENT INDICATORS.