Question 1

How can the YES initiative lift our B-BBEE level, and what conditions must we meet?

Accepted Answer

Youth Employment Service (YES) recognition lets you move up one or two B-BBEE levels by funding new 12 month jobs for black youth aged 18 to 35. Meet your YES target with 2.5% absorption and you move up one level. Reach 1.5 times the target with 5% absorption for one level plus 3 bonus points. Double the target with 5% absorption for two levels. The jobs must be new, in addition to your existing headcount, and paid by you. You must also maintain or improve your level from the prior year and meet the sub minimum conditions for your size. A formula in the notice sets your target.

Question 2

Our turnover will pass R50 million. What changes on our scorecard and verification?

Accepted Answer

Under the generic Codes, a QSE has annual Total Revenue of R10 million to R50 million. Above R50 million you are measured on the generic scorecard, with three priority elements: Ownership, Skills Development and Enterprise and Supplier Development. Each carries a 40% sub minimum. A QSE only needs Ownership plus either Skills Development or Enterprise and Supplier Development. Miss a sub minimum and your level drops by one. A QSE that is at least 51% black owned can use a sworn affidavit, but a large entity needs a full verification. Some sector codes set different thresholds, so confirm which code applies to you first.

Question 3

What counts as reasonable grounds for missing our EE sectoral targets, and how do we prove them?

Accepted Answer

Section 42(4) of the Employment Equity Act lets a designated employer raise any reasonable ground to justify not meeting a target. The EE Regulations, 2025 list the grounds: insufficient recruitment opportunities, insufficient promotion opportunities, too few suitably qualified people from designated groups, the effect of a CCMA award or court order, a transfer of business, a merger or acquisition, and economic conditions affecting the business. The burden of proof is on you. Keep vacancy, recruitment, promotion and financial records for each occupational level throughout the plan period, not only at reporting time.

Question 4

When do we need an EE compliance certificate under section 53, and how do we get one?

Accepted Answer

Section 53 applies when you offer to supply goods or services to an organ of state, or to hire or let anything to one. You request the certificate through the Department's EE Online system, linked to your EE reporting. The Minister may only issue it if you met your sectoral targets or raised a reasonable ground for missing them, submitted your required reports, and had no CCMA or court finding of unfair discrimination, and no minimum wage award, against you in the previous 12 months. It is valid for 12 months from issue, or until your next reporting date. Employers with fewer than 50 employees can also request one online.

Question 5

Why could our training spend still score zero on the Skills Development element?

Accepted Answer

Under Statement 300, you only receive Skills Development points if your Workplace Skills Plan, Annual Training Report and PIVOTAL report are SETA approved, and you implement priority skills programmes, especially for black people. Spend only counts for learning programmes offered to black people, backed by invoices or internal records. Informal and workplace learning cannot exceed 25% of recognised spend, and costs such as accommodation, catering and travel cannot exceed 15%. If you then score below 40% of the 20 weighting points, your overall level drops by one. Plan training against these rules before the year starts, not at verification.

Question 6

How do SETA mandatory and discretionary grants work, and what if we miss 30 April?

Accepted Answer

If your payroll will exceed R500,000 over the next 12 months, you pay a Skills Development Levy of 1% of payroll to SARS. Your SETA pays back a mandatory grant, currently 20% of the levies you paid, when you submit your Workplace Skills Plan and Annual Training Report by 30 April. The SETA may extend this by up to one month. After that, unclaimed grants move into the SETA's discretionary funds by 15 August. Discretionary grants are separate. SETAs open funding windows, and at least 80% of discretionary funds must go to PIVOTAL programmes, which lead to qualifications or part qualifications.

Question 7

We already use an accountant and a verification agency. Where does Inclusion Works fit, and what does the fee cover?

Accepted Answer

We do not replace your accountant or your verification agency. We plan and manage the work in between: gap assessment, procurement reviews, a live evidence tracker, verification preparation, and on site support alongside your team and the agency. We work with independent SANAS accredited verification agencies. An annual project has one all inclusive fee for the agreed scope over 12 months, paid annually, quarterly or monthly. The payment interval never changes the scope. It includes unlimited advisory support within scope, on a fair use basis. Work outside scope is quoted and approved before it starts. Training providers and ED and SED beneficiaries are arranged under separate agreements.

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