How Can I Increase My BBBEE Score Under the New Codes?

Since the amendments to the Codes of Good Practice for Broad-Based Black Economic Empowerment (BBBEE) came into effect in May 2015, there has been considerable confusion among businesses as to what it means for their BBBEE score going forward. The new Codes, which supplement the Broad-Based Black Economic Empowerment Act, No. 53 of 2003, introduced some big changes for scoring. While there was concern about having ratings lowered, there has been scope for certain businesses to actually improve their position. The goal for organisations now is to look at ways of getting their BBBEE score closer to Level 1 to improve their chances of success in the South African business landscape – and in this article, we discuss how this can be done.

The first area that should be examined is the turnover of the business. Under the revised Codes, businesses with an annual turnover of up to R10 million are classified as Exempt Micro Enterprises (EMEs), which are awarded automatic Level 4 status. This is a big change from the old Codes, under which EMEs were restricted to annual turnover of just R5 million. The category has been opened up significantly. The status can easily be upgraded to Level 1 or 2 depending on the percentage of black ownership; EMEs that are at least 51% black owned are classed as Level 2, and those that are 100% black owned, Level 1.

The new Codes have also changed the turnover threshold for Qualifying Small Enterprises (QSEs), shifting the bar from between R5 million and R35 million to the range between R10 million and R50 million, thereby widening and easing the middle category of enterprises in BBBEE classifications.

Unlike EMEs, many QSEs are required to comply with all of the sections of the BBBEE scorecard, which have been condensed from seven into five. Previously, QSEs only had to show compliance with four, so this change has made things a bit more challenging for some companies. The new sections are: ownership, management control, skills development, enterprise and supplier development, and socio-economic development. However, it should be noted that QSEs are eligible for the same black ownership ranking upgrades as EMEs.

To improve their BBBEE rating, businesses should start by looking at their supplier and enterprise development strategies, as this is a priority element on the scorecard. This means ensuring that they are dealing with empowering suppliers with good BBBEE scores of their own. Another tip is to focus on employing and up-skilling disabled black candidates, as this not only boosts BBBEE points, but is hugely helpful in terms of social upliftment.

Businesses can also conduct a competency review and training gap analysis to identify what is needed to better fulfill employment equity goals and best use their skills development budget. Efforts should also be made to work towards effectively increasing black ownership percentages. Businesses should calculate their BBBEE score on a regular basis – even monthly, if possible, to assess their progress.

 

500 New labour inspectors deployed – one is knocking at your door…

Attention Employers!
From the Department of Labour
Not displaying summaries of the EE Act and BCEA in the workplace is punishable by law – a labour inspector could order you to stop working IMMEDIATELY!

Dear employer,

It DOESN’T matter how many employees you might have! 1, 5 or 1000, the Labour Laws are crystal clear.
Either you follow them and everything is OK for you and your business, or you don’t follow them and you along with your employees will bear the consequences. Do you feel like taking a chance?

Avoid fines from the Department of Labour by displaying this information

You must display:
• Summary of the Basic Conditions of Employment Act
• Summary of the Employment Equity Act
• Summary of the Occupational Health and Safety Act
• Summary of the Skills Development Act
Buy and display right NOW at workstations the legal summaries required by Labour Law!

They’ll help you to:
• respect current legislation by providing each employee with information and safety conditions required by the Labour Law
• respect your employees’ rights
• earn your employees’ respect for the fairness you treat them with
Buy now any of the following 4 legal wall chart summaries:
• Summary of the Basic Conditions of Employment Act
• Summary of the Employment Equity Act
• Summary of the Occupational Health and Safety Act
• Summary of the Skills Development Act
Only R250 each!

Five steps to help you prepare for an inspector when he comes knocking…

Step #1: Make sure you display a statement of employee rights

You have to display a summary of employee’s rights in terms of the Basic Conditions of Employment Act (BCEA). And you need to put it where all employees can see it.

And if the inspector is there to look at your company for BCEA issues, he’ll probably also look for the Employment Equity Act summary. So, make sure you have both on display in your workplace.

Step #2: Have records of all employees

Make sure you have a record of each employee either electronically or on file. Keep this for three years from the date of the last entry in the record.

Each record must have each employee’s:
• Name and occupation;
• Working hours;
• Remuneration;
• Date of birth, if under the age of 18 years; and
• Any other prescribed information as set by the industry your business is in.
Step #3: Provide written particulars of employment

You must give written details of employment to an employee as soon as they start working for you. You have to keep these details for three years after termination of the employee’s employment.

Inspectors will usually ask for employee particulars, or files, randomly. So don’t only have a few “perfect” files for them to inspect! Keep them all up to date!

Step #4: Keep information about remuneration

The three most common types of information you’ll need to show is that you:
• Pay remuneration in Rands daily, weekly, fortnightly, or monthly;
• Pay in cash, by cheque or direct deposit into a bank account designated by the employee;
• Ensure payment happens no later than seven days after the end of the period for which remuneration is payable.
Step #5: Comply with legislation

Make sure you follow these three acts:

1. Unemployment Insurance Act (UIA)
You have to give the Unemployment Insurance Commissioner information about your employees. It doesn’t matter how much they earn or what position they’re in.

2. Compensation of Occupational Injuries and Diseases Act (COID Act)
As a business in South Africa, you have to register with the Commissioner. You’ll have to give details of your business and any other information the Commissioner may ask for (Section 80 of the COIDA).

3. Employment Equity Act (EEA)
If you’re a designated employer, he will also makes sure you’re complying with EE!

You must display the BCEA
You must display a summary of the Basic Conditions of Employment (BCE) Act where all employees can see it.

Pay only R250 and the BCEA legal wall chart summary will be yours! Ready to be posted to you today!

There are still many employers who aren’t displaying a summary of the Employment Equity Act at their workplace. This is a mandatory notice for all employers, no matter how many people you employ – 1 or 100!

Pay only R250 and the EE legal wall chart summary will be yours! Ready to be posted to you today!

Are your employees aware of their health and safety obligations?
Let your employees know about all the health and work safety regulations they must comply with to avoid risks at work! The Summary of the Occupational Health and Safety Act is the essence of what EVERY EMPLOYER and EVERY EMPLOYEE must know about health and safety.

Make your employees aware of the occupational health and safety hazards in your company, as well as their health and safety obligations, by displaying a copy of the Occupational Health and Safety (OHS) Act; which requires all businesses with 5 or more employees to implement a health and safety structure to sustain employee well being and create a healthy and safe working environment
Invest now, only R350 and the Summary of the Occupational Health and Safety Act is yours!
It takes care of your safety!

Are you fulfilling your obligations in terms of the SDA!
The Department of Labour has amended the Skills Development Act (SDA). Do you know what the changes are?
You’ll need to! According to the Act, a labour inspector can order certain employers to stop working IMMEDIATELY!
Don’t get caught on the back foot. You could fit into this category. There’s one easy way to find out exactly what you need to know. AND, you’ll impress the labour inspector right away.

Wouldn’t you agree that a simple way to remember what to do is to have an easy-to-read version within plain sight? Now you can your Summary of the Skills Development Act for only R350!

Display it immediately!
So there you have it… Follow these five simple steps and you can pass your inspection with flying colours!

Until next time,

Construction Regulations Implementation Phase 2

Department of Labour Notice
Members are reminded that Phase 2 of the Construction Regulations 2014 implementation phases, related to the application of a Work Permit, came into effect on 7 February 2017. This means that all construction work contracts exceeding a value of R40 million will now require a Work Permit.

Application for Construction Work Permit:

Phase 1
A client who intends to have construction work carried out, must at least 30 days before that work is to be carried out apply to the provincial director in writing for a construction work permit to perform construction work if the intended construction works contract is a value exceeding R130 million or Construction Industry Development Board (CIDB) 9. This will be in effect from 7 August 2015 until 6 February 2017.

Phase 2
A client who intends to have construction work carried out, must at least 30 days before that work is to be carried out apply to the provincial director in writing for a construction work permit to perform construction work if the intended construction works contract is a value exceeding R40 million or Construction Industry Development Board (CIDB) 8. This will be in effect from 7 February 2017 until 6 August 2018.

Phase 3
A client who intends to have construction work carried out, must at least 30 days before that work is to be carried out apply to the provincial director in writing for a construction work permit to perform construction work if the intended construction work will –
(a) exceed 365 days;
(b) involve more than 3 600 person days of construction work ; or
(c) the works contract is a value exceeding R13 million or Construction Industry Development Board (CIDB) 7. This will come into effect from 7 August 2018.

Electric Arc Flash PPE

Electric Arc Flash PPE

According to the NFPA 70E, Arc Flash is a “dangerous condition associated with the release of energy caused by an electric arc.” It is measured in terms of arc flash incident energy E (AFIE), which is used to determine the level of Personal Protective Equipment (PPE).
An arc flash is the light and heat produced from an electric arc supplied with sufficient electrical energy to cause substantial damage, harm, fire, or injury. This can occur near high power electrical equipment such as transformers, service entrance switch gear or generators.
The first step to protection conduct an Arc Flash Hazard Analysis which defines the procedures and limits the damage of electrical arcs on personnel and, by measuring the released energy, defines the risk and determines the relevant level of the PPE required.
HRC* 0 – 0 cal/cm2 ; 0 J/cm2: Non-melting, flammable materials (i.e untreated cotton, rayon, wool, silk or blends of these materials) with a minimum fabric weight of 150g/m2
HRC* 1 – 4 cal/cm2 ; 16,74 J/cm2: Arc Rated Flame Retardant shirt, Flame Retardant trousers or Flame Retardant coverall
HRC* 2 – 8 cal/cm2 ; 33,47 J/cm2: Arc Rated Flame Retardant shirt, Flame Retardant trousers or Flame Retardant coverall
HRC* 3 – 25 cal/cm2 ; 104,6 J/cm2: Arc Rated Flame Retardant shirt and FR trousers or FR coverall, and arc flash suit selected so that the system arc rating complies with the required minimum
HRC* 4 – 40 cal/cm2 ; 167,36 J/cm2: Arc Rated Flame Retardant shirt and FR trousers or FR coverall, and arc flash suit selected so that the system arc rating complies with the required mini
*HRC: Harzard/Risk Category
Selecting the correct level of Arc Protection Equipment (APE) is made easy from this table however there are a few questions to ask your APE supplier:
• Is the garment compliant with SANS 724:2010, NFPA 70E:2009 and SANS 984/IEEE Std 1584?
• Can they send you the relevant certifications?
• Does the garment meet your required HRC level?
• Has the garment been tested? (not the fabric – very important)
• If so, can they send you the test reports that include photos?
It’s important to note that where more than 40cal/cm2 APE is required it is not recommended unless all other means of reducing the risk of exposure has been investigated.
The Arc PPE you use really is your last line of defence, and following the above steps ensures that you are doing the best you possibly can to minimise injuries as a result of an arc flash incident.

Our Port Elizabeth branch has moved to new premises! Please pop in to book your training or just to say hi!

Why bother implementing a Health and Safety culture at work? Let us tell you why.

Sounds like a shlep to most employers, we know. But it’s more complicated than you think.

There is an Act in South Africa, called the Occupational Health and Safety Act (governed by the Occupational Health and Safety Act of 1993). Its main purpose is to protect the health, safety and welfare of people engaged in work or employment. If you’re an employer/business owner, abiding by what this Act says is important for moral, health and financial reasons. Morally, every employer has an obligation to protect the lives of their employees. Legally, every employer/business owner will be held liable for their negligence to implement Health and Safety measures in their businesses and will be held accountable to pay out compensation to the families of the injured or deceased worker. A business owner may bump into litigation charges or fines, should their lack of due diligence in implementing Health and Safety be identified. If an employee fatality occurs within the workplace, this could possibly be traced back to negligence, indifference or unsafe practices. At the end of the day, business owners are the ones who will be charged with various offenses. The business owner will furthermore be obligated to deal with bad publicity and its adverse effects on business. Welcoming a Health and Safety culture within your workplace protects the employees as well as the employer.

Accidents and work related illnesses cost companies money by means of lost time, lost production, damage to equipment and materials, compensative payments and increased insurance costs. Improving safety performance at your workplace brings immediate cost savings for everyone concerned. Whether it’s your workers involved in accidents or your property that gets damaged by a fire – you WILL be financially liable. Implementing Health and Safety measures helps businesses to prevent such incidents from happening.

With Health and Safety procedures in place at your workplace, wastage of people and materials are minimized. Receiving Health and Safety Training, and other things such as Risk Assessments is definitely a must for every business owner regardless of what industry you operate in.

The OHS Laws is not in place to create hassles for employers or just to charge people fines for violations. The law is in place to keep workers accident and injury free, and to protect businesses from damage to property. It’s not about what it costs, it is about what it saves.

We have moved

The East London office has moved to bigger and better premises due to company growth. See map for new location details. Please be advised that our telephone number is the same (043 7402029) yet our fax number has changed (043 732 1004). We look forward to seeing you visit our new premises!