Youth Employment Service Initiative
YES Program Overview:
The Youth Employment Service (YES) Initiative was published in the Government Gazette and came into immediate effect on the 28th of August 2018. This amendment to the B-BBEE Codes of Good Practice refers to 12-month work opportunities (for e.g. learnerships) with fixed term or temporary employment contracts for black youth, between the ages of 18 and 34.
In short, the YES initiative enables B-BBEE investment to be spent on job creation for black unemployed youth. Youth unemployment in South Africa is an issue of grave economic importance. Unemployment levels remain stubbornly high, with youth unemployment rates in South Africa sitting at four times the Sub-Saharan unemployment rate.
Implementing the YES initiative allows for a welcome move towards a broad-based focus, further allowing spend on this large and marginalised group, most of whom are Not in Employment, Education or Training and most of whom do not have matric certificates. Youth in this unemployed segment are sorely lacking economic pathways into the economy. The table describing the Youth Employment Service (Y.E.S) Initiative and BEE Recognition can be found below.
B-BBEE RECOGNITION
Achieve YES Target and 2.5% Absorption
Move 1 B-BBEE Recognition Level up on the Scorecard
Achieve 1.5 X YES Target and 5% Absorption
Move 1 B-BBEE Recognition Level up on the Scorecard + 3 Bonus Points to the overall Scorecard
Double YES Target and 5% Absorption
Move 2 B-BBEE Recognition Levels up on the Scorecard
QUALIFYING CRITERIA FOR MAKING A CHANGE THROUGH THE YOUTH EMPLOYMENT SERVICE:
• 40% sub-minimum in each of the priority elements of the scorecard (Ownership, Skills and ESD) or alternatively,
• 50% average across the three priority elements
• Y.E.S is additive; therefore entities must maintain or improve prior years BEE Status level before participating in YES *
*Exemption / Special Dispensation to participate in YES despite not previously having a B-BBEE Rating / Level in place can be applied for with the Department of Trade, Industry & Competition
SKILLS DEVELOPMENT SPEND FOR YES
Entities can claim up to 50% of skills development spend on YES Youth in the Category F and G on the learning matrix, these categories refer to Informal Training (industry led, non-accredited programmes). The previous spend recognised was up to 15% on Informal non-accredited training.
CALCULATING YES HEADCOUNT TARGETS
The YES target for companies with over R50 million annual turnover is determined as the greater of:
• 1.5% NPAT/R55 000
• 1.5% of headcount
• the value in the company turnover band in Table 1 below
THE YES target for companies with under R50 million turnover (QSEs) is determined by the headcount band in Table 2 below
The Youth Employment Service target for companies with under R50 million turnover (QSEs) is determined by the headcount band in Table 2 below…
Table 1 – Large Company Turnover-Based Targets:
Turnover Band (Rand Millions)
Minimum Youth Jobs
50 - 75
6
75 - 99
7
100 - 149
8
150 - 199
9
200 - 249
10
250 - 299
11
300 - 349
12
350 - 399
13
400 - 449
14
450 - 500
15
Table 1 – Large Company Turnover-Based Targets:
SMME Head Count
Y.E.S Youth Target
1 - 19
1
20 - 39
2
40 - 59
3
60 - 79
4
80 - 99
5
100 - 119
6
120 - 139
7
140 - 159
8
160 - 179
9
180 - 199
10
200 - 219
11
220 - 239
12
240 - 259
13
280 - 299
15
ELIGIBLE EMPLOYEES
Individuals who meet the below criteria are eligible for participation under the Youth Employment Service Initiative:
– are between the ages of 18 and 35; and
– meet the definition of “Black People” as defined in the Broad-Based Black Economic Empowerment Act 53 of 2003 as amended by Act 46 of 2013
EMPLOYMENT CONDITIONS
• Y.E.S Measured Entities engaging eligible employees in new positions are subject to South African legislation governing basic conditions of employment and working conditions.
• Y.E.S Measured Entities are required to sign fixed term or temporary employment contracts with all eligible employees filling new positions within their Entity. These new positions must have a 12-month fulltime work experience paid for by the Entity;
• Y.E.S Measured Entities must commit to ensuring a quality work experience is provided to the eligible employee insofar as the entity is able to provide it;
• Clear communication must be provided to the employee should the contract not be renewed or extended into permanent placement;
• The new jobs must be created in addition to existing headcount. Y.E.S Measured Entities may not replace existing positions with new positions; and
• Where Y.E.S Measured Entities are unable to create a sufficient number of new jobs within the entity to meet their targets, they may sponsor new jobs to be placed in EMEs or QSEs. The sponsored positions will contribute to meeting the Y.E.S Measured Entity’s target.
Contact Edge Training, to find out more about the Y.E.S initiative and how it can work for your business.