Presented by: Richard Ryding

YOUTH EMPLOYMENT SERVICE &

PRACTICE GUIDE

1. Apply to all companies, even if fall under Sector Code

2. B-BBEE recognition for companies meeting targets in terms of the

Youth Employment Service (YES) Initiative:

✓ Generics must:

• Meet all priority element subminima i.e. not discounted; or

• Average 50% across the 3 priority elements (8 points for

Ownership + 20 points for Skills + 40 points for Enterprise &

Supplier Development = 68 x 50% = 34)

✓ QSE must:

• Meet the priority element in 2 of the priority elements, one of

which must be Ownership.

• Alternatively, average 40% over 2 of the 3 priority elements,

one of which must be Ownership.

✓ EME have no subminimum requirements.

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YES Amendment – BEE Targets

3. YES Entities must maintain or improve their BEE level the year

before first participating in YES.

4. If the company’s BEE level reduces they can engage with the dti B-

BBEE policy unit with evidence to determine if they can participate

5. Acceptable reasons could be:

✓ Termination of an Ownership deal

✓ Gazetting of Sector code

✓ Decrease in Market value of shares impacts Net Value

✓ Reduction in procurement spend because of a change in or

unpredictable business cycle

✓ Supplier fails to maintain its BEE recognition level.

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YES Amendment – BEE Targets

6. Generics must meet a target of the higher of:

✓ 1.5% of the company’s head count in the preceding year. Based

on the last day of the financial year end used for verification; or

✓ 1.5% of the company’s average NPAT for South African

operations for the immediately preceding 3 years, converted to

headcount by dividing the average NPAT by R55,000. The NPAT

is per the Financial statements used for verification; or

✓ The target in Annexure A of table 1. This ranges from 6 people

for a company with turnover of between R50 and R75 million to

15 people for a company with greater than R500 million sales.

Sales is based on the most recent completed financial year.

7. QSE and EME must meet targets of:

✓ Annexure B in table 2, ranging from 1 person if headcount is

between 1 and 19, to 40 if head count more than 780.

8. If the company makes an average loss over the last 3 years,

industry norm NPAT calculations must be used.

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YES Amendment – BEE Targets

1. YES Entities must register with the YES Non-Profit Company

2. The new jobs created must be new jobs in addition to existing

headcount

3. If companies are unable to create positions within their headcount,

they can sponsor positions at EME or QSE.

4. Eligible employees in new positions are:

✓ Subject to SA Labour legislation

✓ Must sign FTC or temporary employment contracts giving a 12-

month full time work experience

✓ Clear communication if the contract is not renewed made

permanent

5. The following Employees are eligible for the YES Initiative:

✓ Between the ages of 18 and 35

✓ Meet the definition of black as defined in the BEE act.

✓ Must be unemployed at date of registering for YES

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YES – General Principles

6. Only be able to get B-BBEE recognition 1 year after first

implementation to be able to measure absorption

7. Absorption can only take place after the completion of the 12

months of the Work Place Experience programme

8. If the Employee does not complete the full 12 months, the company

must ensure at least 8 months are completed. Companies have 1

month to replace any drop offs to ensure recognition.

9. The Work Place experience does not qualify as a learnership,

internship or apprenticeship

10. The “Quality Workplace Experience will be monitored by the Y.E.S.

Non-Profit Company to ensure a consistent national standard.” Not

sure what this will entail

11. YES companies will be able to claim up to 50% of their Category F

and G spend on YES employees

12. If an EME or at least 51% Black Owned QSE participates they will

be verified against the QSE scorecard and a certificate issued.

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YES – General Principles

1. Registration for Black Youth - https://www.yes4youth.co.za/for-

youth/

2. Registration for YES Entities - https://www.yes4youth.co.za/for-

business/

3. EME, QSE and Host Entities - https://www.yes4youth.co.za/smme-

database/

4. Skills Service Providers - https://www.yes4youth.co.za/skills-

suppliers/

5. Implementation Partners and Service Providers -

https://www.yes4youth.co.za/service-provider-database/

6. YES Resources – https://www.yes4youth.co.za/resources/

7. Y.E.S Contact Information and Queries -

https://www.yes4youth.co.za/contact-yes/

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YES – Links

1. Placing a youth inside your business – you find the youth:

✓ R5,000 per youth - Once off annual youth management,

monitoring and evaluation cost and business support + cost to

build a national YES movement. No sourcing and matching

assistance from YES

✓ R20,000 Registration fee (once off)

✓ R3,500 minimum monthly stipend paid directly to the youth

2. Placing a youth inside your business – YES finds the youth:

✓ R7,000 per youth - This is a once off annual youth management,

monitoring and evaluation cost and business support + cost to

build a national YES movement. Sourcing and matching

assistance from YES

✓ R20,000 Registration fee (once off)

✓ R3,500 minimum monthly stipend paid directly to the youth

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YES – Costs

3. Placing a youth at a Host:

✓ R9,000 per youth - YES Source the Youth, or

✓ R5,000 per youth - The company sources the youth

✓ R20,000 Registration fee (once off)

✓ R3,500 minimum monthly stipend paid directly to the youth

✓ Includes the option for YES payroll and claiming of ETI

4. Placing a youth at a new business:

✓ R9,000 per youth - YES Source the Youth, or

✓ R5,000 per youth - The company sources the youth

✓ R20,000 Registration fee (once off)

✓ R3,500 minimum monthly stipend paid directly to the youth

✓ Includes the option for YES payroll and claiming of ETI

✓ Excludes any ED funds for start-up costs

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YES – Costs

B-BBEE recognition for the YES Initiative:

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YES – B-BBEE Scorecard Impact

B-BBEE Recognition

Achieve YES Target and 2.5%

absorption

Increase of 1 level on B-BBEE

certificate

Achieve 1.5 x YES Target and 5%

absorption

Increase of 1 level on B-BBEE

certificate + 3 bonus points

Achieve 2 x YES Target and 5%

absorption

Increase of 2 levels on B-BBEE

certificate

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Thank you for your

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