Further clarification on “Absorption” to Amended Codes of Good Practice on Black Economic Empowerment gazetted on May 31, 2019 effective as of December 01, 2019.
SANAS in consultation with the Department of Trade, Industry and Competition (the DTIC) B-BBEE Policy Unit has clarified the calculation of the absorption bonus points in the Skills Development Scorecard. The following definitions are relevant in order to understand the criteria applicable to absorption.
- “Absorption” means a measure of the Measured Entity’s ability to successfully secure a long-term contract of employment for the Employee, Learner, Intern or Apprentice. Note: This is not only limited to unemployed black people on Internship, Learnerships and Apprenticeship but also includes employees that are not on long-term contracts.
- “Long-Term contract of employment” means a legal agreement between an individual and an entity that this individual would work for until his or her mandatory date of retirement.
Skills Development Scorecard
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The 100% Target for Absorption is 100% of the 5% target in 2.1.2.1.
This means that the target (or denominator in the calculation) for Absorption is 5% of the TOTAL NUMBER of EMPLOYEES within the Measured Entity and is NOT calculated on based on of the NUMBER of the UNEMPLOYED LEARNERS who completed a programme and were provided with long-term employment during the financial period as previously interpreted.
