According to the Practical Guide to Human Resources Management, the BBBEE Codes were set out in 2007.
They set targets for those companies who wish to be measured against the scorecard for employment equity and other elements.
If your business doesn't comply with Sections16, 19, 20, 21, 22 and 23 of the Employment Equity Act (EEA), you could face a fine between R500 000 and R900 000, depending on the level of contravention.
Is that a risk your company can afford to take?
Here's how to improve your BEEE compliance
The Practical Guide to Human Resources Management recommends you keep track of the targets and check variances monthly. Ensure that staff leave and vacancies are filled.
It's also important to evaluate the effect of staff changes to your targets and to be aware of how this may affect your score.
How the rating agency will rate you depends on:
Remember, if your company's turnover is less than R5 million, you're exempt from measurement. But you can get a Level 4 certificate through an accredited rating agency.
You can present this certificate to any customer requesting your BBBEE certificate
In addition, the Department of Trade and Industry has gazetted seven Sector Charters under Section 12 of the BBBEE Act.
This means that:
If your company operates in any of these industries, you must consult the Charters when planning your employment equity targets.
If your company doesn't fall in any of these sectors, follow the Generic BBBEE Scorecard
You must use the guidelines set out in the EEA and its regulations when you determine your employment equity score.
Well there you have it. Now that you know what's required of your company, make sure you're BBBEE compliant.