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is currently an estimated six million young persons in our country who are
unemployed and the YES Initiative aims to address this unemployment by
creating at least one million new jobs. BEE

Youth is defined as persons between the ages of 18 and 35 and the YES Initiative
is aimed specifically at creating opportunities for them by setting targets for
entities for the creation of one-year paid positions with a minimum paid stipend
of R3,500.00 per month.
Targets are set for the creation of new jobs for youth as well as their absorption
(i.e. appointment). The jobs can be created within an entity itself or an entity
may sponsor new jobs to be placed in EMEs or QSEs. The targets for job creation
are linked to the turnover of the business with different requirements set for
EMEs, QSEs and Generic entities as well as different methods of determining
their targets.

EMEs have no sub-minimum requirements and need only meet their targets
based on headcount as set out in the YES Initiative.

QSEs must however meet the 40% sub-minimum requirements for Ownership
element and one of the other two priority elements or have an average of 40%
for the Ownership element and another priority element. They must also then
meet specific headcount targets based on the same table as for EMEs.

Generic entities must meet the 40% sub-minimum for all three priority elements
or alternatively they must average 50% across the three priority elements. They
then also have to meet the higher of the following targets:

• 1.5% of their headcount; or
• 1.5% of their average Net Profit After Tax (“NPAT”) for the last three years
after their NPAT has been divided by R55,000; or
• A specific headcount target determined by a table in the YES Initiative.
Importantly, all entities will have to ensure that they maintain or improve their BEE
level in order to benefit from the YES Initiative.

If entities meet the requirements as well as their targets, they will be enhanced
by a level on their BEE scorecard and if they meet the requirements and double
their targets, they will be enhanced by two levels.

There is still some uncertainty regarding the implementation of the YES Initiative
but according to their website, https://www.yes4youth.co.za, a practice note,
which should contain the verification details necessary to implement the YES
Initiative, will be released within the next few weeks. There is currently speculation
that this practice note might do away with the absorption targets for the first
year in order to encourage entities to take part in this initiative and gain an
immediate advantage. We will, however, have to wait for the practice note to be
published for clarity on this point.

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