Youth Employment Service Launch

Youth Employment Service Launch


Earlier in 2018 the president announced the launch of the Youth Employment Service (YES) as a partnership between government and business to employ young people in the country. On the 28 August the YES scheme was gazetted by the Minister of Trade and Industry.

The YES Scheme allows qualifying entities to move up a level or two on their BBEEE score if they meet specific employment targets either in their own company or by sponsoring employment in other companies.

This article is intended to summarise the main points of the YES Scheme, but is not intended to be a definitive guide.

Generic QSE EME
Entity Size >R50m turnover 10m to 50m turnover <R10m turnover
Qualifying Criteria 40% minm for all 3 priority elements OR average of 50% across all 3 40% minm for 2 out of 3 priority elements (ownership must be one) OR average of 40% for 2 of 3 (of which ownership must be one) Nil
Maintain or improve BBEEE level since prior year
Target Higher of:

1. 1.5% of prior year headcount; or
2. 1.5% of last 3 year’s NPAT / R55,000 (to convert to a headcount number); or
3. A target per Table 1 (from gazette)
As per table 2 (from gazette)
e.g. a company with 100 employees would have a target of 6 new employees
Eligible Employees •  Between 18 and 35
•  Meet the definition of “Black” people as defined in the BBEEE Act
Employment Conditions
•   Subject to existing legislation (BCOE)
Must sign fixed term or temporary employment contracts for min. term of 12 months full-time work experience
Must commit to a quality work experience
Clear communication if contract is not extended or made permanent
New jobs must be in addition (not replacement) to existing headcount
Targets can be met by sponsoring roles in an EME or QSE (as opposed to in the entity itself)

Successful achievement of target will result in the following outcomes:

BBBEE Recognition
Achieve Y.E.S Target and 1.5 % Absorption Move 1 B-BBEE Recognition Level up on the Scorecard
Achieve 1.5 x Y.E.S Target and 5% Absorption Move 1 B-BBEE Recognition Level up on the Scorecard + 3 Bonus Points to the Overall Scorecard
Double Y.E.S Target and 5 % Absorption Move 2 B-BBEE Recognition Levels up on the Scorecard

In addition, informal skills development expenditure for these roles can be claimed as 50% of the skills development expenditure (Category F and G of the Skills Development Framework) (instead of the lower 15%).