Government introduces Youth Employment Service Initiative - B-BBEE - Codes of Good practice
The rate of youth unemployment in South Africa is soaring. Government has introduced an incentive to contribute towards job creation for black South African youths. Entities which are measured in terms of their contributions towards Broad-Based Black Economic Empowerment (B-BBEE) may now achieve enhanced recognition through their qualifying contributions in the Youth Employment Service (or Y.E.S) initiative.
This initiative seeks to encourage the employment of black young people of 18 to 35 years of age in quality employment, for at least a 12 month period. Entities which wish to participate in the Y.E.S initiative must meet certain qualification criteria and if so, must meet certain targets for recognition, based on a percentage of headcount or the value of contributions calculated on net profit after tax.
Contributions may either be through direct job creation in the entity or through sponsorship of placements in other entities.
Entities which contribute to the Y.E.S initiative may move up one to two levels on their B-BBEE scorecard, depending on the extent to which they meet or exceed the Y.E.S targets.
For more information on Y.E.S please see the Government Gazette here.
Please contact our B-BBEE experts for more information.