Training and development benefits for BEE points

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Being BEE compliant will enable a business to obtain better contracts, in addition, it provides credibility for the company.  Training staff members is beneficial for the company.

 

There are a number of benefits for implementing B-BBEE within a company, but when training has occurred, there are more employable people as training has taken place and staff members have improved their skills competence.  One of the ways a company can improve its B-BBEE scorecard is to implement training, as training and development spend earns 20 points on the BEE scorecard.  In addition to the 20 points, companies are entitled to claim up to 40% on any staff training costs.

 

The general benefits of training are:

  • Increased job satisfaction and morale among employees.
  • Increased employee motivation.
  • Increased efficiencies in processes, resulting in financial gain.
  • Increased capacity to adopt new technologies and methods.
  • Increased innovation in strategies and products.
  • Reduced employee turnover.
  • Enhanced company image, e.g., conducting ethics training (not a good reason for ethics training!).
  • Risk management, e.g., training about sexual harassment, diversity training.

 

The following are typical reasons for employee training and development:

  • When a performance appraisal indicates performance improvement is needed.
  • To “benchmark” the status of improvement so far in a performance improvement effort.
  • As part of an overall professional development program.
  • As part of succession planning to help an employee be eligible for a planned change in role in the organization.
  • To “pilot”, or test, the operation of a new performance management system.
  • To train about a specific topic (see below):
    • Communications: The increasing diversity of today’s workforce brings a wide variety of languages and customs.
    • Computer skills: Computer skills are becoming a necessity for conducting administrative and office tasks.
    • Customer service: Increased competition in today’s global marketplace makes it critical that employees understand and meet the needs of customers.
    • Diversity: Diversity training usually includes an explanation about how people have different perspectives and views, and includes techniques to value diversity.
    • Ethics: Today’s society has increasing expectations about corporate social responsibility. Also, today’s diverse workforce brings a wide variety of values and morals to the workplace.
    • Human relations: The increased stresses of today’s workplace can include misunderstandings and conflict. Training can people to get along in the workplace.
    • Quality initiatives: Initiatives such as Total Quality Management, Quality Circles, benchmarking, etc., require basic training about quality concepts, guidelines and standards for quality, etc.
    • Safety: Safety training is critical where working with heavy equipment, hazardous chemicals, repetitive activities, etc., but can also be useful with practical advice for avoiding assaults, etc.
    • Sexual harassment: Sexual harassment training usually includes a careful description of the organization’s policies about sexual harassment, especially about what are inappropriate behaviours.

It is imperative though, to ensure that all training is recorded so that it can easily be submitted for the BEE audit.

 

How to benefit from training?

Skills development is one of the easiest elements to gain points.  Succeeding in this element will not only assist with the BEE score, but it will also assist the company with the skills that are required as well as potentially reducing unemployment.

  • 8-points can be earned if the company invests 6% of payroll in the training of black people.
  • An additional 4-points can be earned of 0.3% of the total payroll is spent on learning programmes for disabled black employees.
  • By participating in learnerships, apprenticeships or internships a company can claim and additional 4-points if 2.5% of the employees are enrolled on such programmes, and an additional 4 points if 2.5% of the company’s headcount are black unemployed learners.
  • Additional 5-bonus points can be earned if all the unemployed learners are gainfully employed on the conclusion of the learnership.

 

There are additional benefits under the latest codes that relate to training and development.  These are as follows:

  • The training costs of unemployed learners can be claimed.
  • The salaries of learners enrolled on learnerships, apprenticeships or internships can count towards training expenditure.
  • The cost of the Skills Development Facilitator can be claimed as a training expense.
  • 15% of training spend can consist of internal non-accredited training.
  • There is a R60 000.00 tax-break per participant registered on a learnership.

 

Therefore, to conclude, there are a number of incentives to train employed and non-employed persons.  There are a number of registered qualifications as well as short learning programmes offered by both the private providers as well as public institutions that can assist in meeting the company’s training needs.  The ICB has a number of registered learnerships that can assist companies in addressing the training and development requirements.

 

 

 

 

Learnerships

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What is a learnership?

A learnership is a work-based learning programme that leads to a qualification that is registered in the National Qualifications Framework.  Learnerships are directly related to an occupation or field of work, for example, bookkeeping or office administration.  The aims of learnerships are to address the challenges of:

  • Decreasing employment;
  • Unequal access to education and training, and employment opportunities;
  • The effects of race, gender and geographical location on educational advancement;
  • and over and above the skills shortages in South Africa.

 

Who qualifies for a learnership?

Learnerships are available for those who have completed school, college or learning at other training institutions, or for those who are studying part-time.  Unemployed South Africans can participate in a learnership programme if there is an employer who is prepared to provide the required work experience.

 

What are the benefits of learnerships to employers?

As the learnerships are developed by industry for the industry, and in consultation with all stakeholders, the learning programmes and qualifications linked to these learnerships are relevant to the specific occupation.  When learners partake in a learnership there is a greater credibility of the qualifications as the employer has the assurance that the learners can demonstrate not only theory competence but practical competence as well.

 

As learnerships combine both practical a theory outcome of a qualification, they provide skilled people who:

  • tend to work more independently, need less supervision and possess enhanced problem-solving capabilities;
  • are motivated and strive to add value to the business;
  • are less likely to leave a company that takes an interest and invests in their personal and professional development;
  • entering into learning contracts with unemployed people contributes to building up the skills pool, from which employers may recruit relevant skills as needed;
  • have more skills. The more skills gained, the greater the productivity and the more meaningful the individual’s contribution to South Africa’s global competitiveness and to creating an environment conducive to investment.

 

By placing un-employed learners on a learnership, the employer has access to a wider pool of appropriately qualified workers who have developed skills that are relevant to the company’s specific work context.

 

Furthermore, there is an increased return on investment when implementing training initiatives.  Not only are there BEE benefits, but there are:

  • Higher returns from the Skills Levy and investment in training, due to transfer of learning to the job.
  • Increased grant disbursements from Skills Levy contributions. Many SETAs offer Learnership grants ranging from R 4 000 – R 40 000 per learner. However, the grants are subject to availability and are offered on a first come, first serve basis on the condition that the Learnership address a scarce skill in the sector.
  • Tax Incentives: SARS offers companies attractive tax incentives for participating in Learnerships. Tax Incentives are deductions on your taxable income that you can claim for each Learnership candidate that you have in your employment, once at the start of the Learnership, and once again at its completion.
    • For learnerships entered into after 1 October 2016 but before 1 April 2022:
      • The allowance will depend on the NQF (National Qualification Framework) level of the learnership. For NQF level 1-6, the employer can claim a tax allowance of R40,000 (R60,000 for disability) per year and NQF level 7-10, It can claim a tax allowance of R20,000 (R50,000 for disability) per year.
      • The employer can claim a R40,000 “completion allowance” for NQF level 1-6 (R60,000 for disability) and R20,000 for NQF level 7-10 (R50,000 for disability).
      • If the Learnership exceeds 24 months, then the completion allowance is multiplied by the number of consecutive 12-month periods within the duration of that learnership.

 

What are the benefits of learnerships for learners?

The following are the benefits of learnerships for learners:

  • Better employment opportunities afterwards;
  • Fixed-term employment contract for the duration of the Learnership;
  • Learnerships improve on the job performance so they are able to do things relevant to the job;
  • A nationally-recognised qualification that is relevant to the sector;
  • Earning a learner allowance for the duration of the Learnership.

 

What does a learner receive on completion?

During the Learnership, learners will be required to complete assignments, tasks and practical tests and projects. They will be formally assessed in the classroom and the workplace.
If all these assignments are completed successfully, they will be awarded an NQF-registered qualification, which is recognized nationally. They will receive a certificate stating the qualification and the area of skill development.

 

What is required to enter into a Learnership?

If a learner is accepted, he/she will need to sign two legal documents:

  • Learnership Agreement: this is an agreement signed by the learner, the organisation employing the learner, and the education provider offering the theoretical training component of the Learnership. This agreement clearly outlines the rights and responsibilities of all three parties.
  • Employment contract: this is a contract they will sign with the employer, which is only valid for the time period of the Learnership.

 

Can a Learnership be terminated?

An employer can terminate the contract of a Learnership if:

  • The duration specified in the Learnership agreement has expired;
  • The employer and learner have agreed in writing to terminate the Learnership agreement, or if there is no such agreement, the SETA that registered the agreement approves the termination; or
  • The learner is fairly dismissed for a reason related to the learner`s conduct or capacity as an employee.

 

What learnerships are offered through the ICB?

The ICB administers the following learnerships on behalf of Fasset:

  • Junior Bookkeeper Learnership
    1. National Certificate Bookkeeping – NQF 3
    2. Duration – 1 year
    3. Entry requirement – 16-years of age or NQF 2 qualification
  • Senior Bookkeeper Learnership
    1. Further Education and Training Certificate: Bookkeeping – NQF 4
    2. Duration – 1 year
    3. Entry requirement – simultaneous completion of Junior Bookkeeper learnership
  • Technical Financial Accountant Learnership
    1. National Diploma Technical Financial Accounting – NQF 5
    2. Duration – 2 years
    3. Entry requirements – simultaneous completion of the Junior and Senior Bookkeeper learnerships
  • Small Business Financial Management Learnership
    1. National Certificate Small Business Financial Management – NQF 4
    2. Duration – 1 year
    3. Entry requirements – NQF 3 qualification
  • Office Administration Learnership
    1. Certificate Office Administration – NQF 5
    2. Duration – 1 year
    3. Entry requirement – NQF 4 qualification
  • Senior Office Administration Learnership
    1. Higher Certificate Office Administration – NQF 5
    2. Duration – 2 years
    3. Entry requirement – simultaneous completion of Office Administration learnership
  • Public Sector Accounting Learnership
    1. National Certificate Public Sector Accounting – NQF 4
    2. Duration – 1 year
    3. Entry requirement – NQF 3 qualification
  • Technical Public Accountant Learnership
    1. National Diploma Public Sector Accounting – NQF 5
    2. Duration – 1 year
    3. Entry requirement – successful completion of Public Sector Accounting Learnership

 

Roles and responsibilities

The following are the roles and responsibilities of each party.

  • ICB
    • Marketing of learnerships which are under the auspices of the ICB.
    • Provide guidance and support to employers implementing ICB learnerships.
    • Apply or give advice on recognition of prior learning.
    • Register learners for theory and practical assessments.
    • Accredit theory skills development providers to offer the theory tuition towards the underpinning learnership qualifications.
    • Accredit workplace providers to offer the structured practical component of the learnership.
    • Conduct national theory assessments of the qualifications.
    • Conduct workplace assessment via the means of a detailed portfolio of evidence.
    • Register learners on the National Learner Records Database via Fasset.
    • Administer the award of the registered qualification.

 

  • SETAs
    • To register learnership agreements.
    • Promote learnerships across all levels and sectors.

 

  • Learners
    • Enter learnership agreement between the employer and skills development provider.
    • Actively participate in induction programmes.
    • Work for the employer form the duration of the learnership agreement.
    • Register with a skills development provider for the theory component of the learnership qualification.
    • Register with the ICB for the theory and practical assessments associated with the relevant qualification and learnership.
    • To be available for and participate in all theory instruction and structured work experience required for the completion of the learnership.
    • Adhere to all workplace policies and procedures.
    • Complete all documentation associated with the learnership and complete and submit a workplace portfolio of evidence for assessment.

 

  • Skills Development Provider
    • Ensure that they are accredited by the ICB to offer tuition towards the relevant qualification that underpins the learnership.
    • Ensure that they meet the quality assurance criteria set by the ICB.
    • Provide tuition in line with the outcomes of the modules of the relevant qualifications.
    • Enquire that learners are registered with the ICB for the national assessments.
    • Ensure that they are registered with the Department of Higher Education, Science and Technology.

 

  • Employer as a workplace provider
    • Attain accreditation with the ICB to offer the practical component of the learnership.
    • Appoint a mentor to the learner for the duration of the structured workplace component.
    • Implement a quality management system to manage:
      • Learner induction
      • Learner support
      • Mentoring
      • Performance management
    • Enter learnership agreement with the learner and accredited skills development provider.
    • Enter employment contract with the learner.
    • Comply with all applicable labour legislation.
    • Schedule and provider learner with appropriate training and exposure to the practical outcomes of the learnership as stipulated in the workplace portfolio of evidence available from the ICB.
    • Supervise the learner for the duration of the learnership agreement.
    • Release the learner for training and assessments applicable to the learnership.

 

In conclusion, learnerships are positive programmes that enhance the education and potential of those entering the workforce.

 

 

 

 

 

 

CIPC NEW COMPLIANCE CHECKLIST

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In August last year, the CIPC introduced a compliance checklist which customers will be required to complete in order to declare the compliance status of their company against specific sections of the Companies Act No.71 of 2008.

This compliance checklist is mandatory as of 1 January 2020 and must be completed before submitting annual returns.

To ensure compliance of the mandatory requirements of the Companies Act such as described in section 15, – requiring every company to have an MOI.

This serves as an educational tool for directors and company secretaries, in guiding them with regards to their responsibilities in terms of the Companies Act.

CIPC will utilise the Checklist to monitor and regulate proper compliance with the Companies Act and if trends of non-compliance appear, to act accordingly.

View the checklist here.