Here are three tips for avoiding the common conflict that many organisations face regarding what version of a B-BBEE Code of Good Practice is applicable to them:
- Organisations must comply with the requirements of the B-BBEE Code of Good Practice they qualify to be measured against. For example, an organisation that does not earn 50% of its annual revenue from a sector that has a B-BBEE Sector Code issued in terms of Section 9 (1) of the B-BBEE Act must revert to be measured on the Amended General B-BBEE Codes of Good Practice. In 2019 there were amendments to the Amended General B-BBEE Codes of Good Practice, namely in Statement 000, Statement 300, Statement 400 and Schedule 1 – Interpretations & Definitions. These amendments only apply to those measured on the Amended General B-BBEE Codes of Good Practice. As to date none of the Sector Codes have been amended to incorporate these amendments, they do not apply to those measured on a B-BBEE Sector Code.
- The Transport Sector Code has not been amended since it was introduced in 2009. Subsequently, an organisation falling into this ambit is still measured against the requirements of the initial B-BBEE Codes of Good Practice implemented in 2007.
- Consequently, an organisation measured on the Transport Sector Code has not yet faced the consequences of not meeting sub-minimum requirements of the Priority Elements or the Discounting Principle. However, the Y.E.S initiative is applicable to the Transport Sector based on a Clarification Statement issued in February 2020.
Lastly, if a Sector Code, either amended or not, is silent on an issue, an organisation must revert to the requirements held within the Amended General B-BBEE Codes of Good Practice.
It is, however, vital to know the difference between Silence vs Conflict in the context of B-BBEE Legislation to avoid any issues.?
Technical Compliance Services are available to help Members understand the difference between Silence VS Conflict under B-BBEE legislation.
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