How to Earn Bonus Points on the B-BBEE Scorecard Through Absorption

The B-BBEE Codes provide an opportunity to earn bonus points under specific elements, including Skills Development. Up to five bonus points can be claimed by a Measured Entity for the absorption of black individuals following the successful completion of a learnership, internship, or apprenticeship.

What is Absorption?
The Codes of Good Practice define absorption as:
"A measure of the Measured Entity’s ability to successfully secure a long-term (permanent) contract of employment for the Employee, Learner, Intern or Apprentice."

This definition also applies to employees who do not currently have a long-term contract of employment.

A learner becomes eligible for absorption only after successfully completing their apprenticeship, internship, or learnership. Once absorbed, the Measured Entity can claim bonus points under the Skills Development element of the scorecard.

Timing of Absorption
For bonus points to be claimed, absorption must occur before the end of the organisation's B-BBEE verification, regardless of the Measurement Period.

How Are Absorption Points Calculated?
The calculation of absorption points depends on the following factors:

• B-BBEE Codes of Good Practice:
  The target for absorption is set at 5% of the Total Employee Headcount.
• Sector-Specific Calculations:
  In other sectors, the percentage of learners absorbed is compared to the total number of learnerships completed during the measured financial year.

Documentation Needed to Claim Absorption
To claim absorption points, the following documentation is required:

• A certified copy of the individual's ID
• EEA1 form
• Completion certificate or agreement for the program
• Permanent employment agreement
• First and latest payslips following absorption

Conclusion
Absorption is an excellent way for Measured Entities to increase their B-BBEE scorecard points while simultaneously creating long-term employment opportunities. This not only benefits employees but also helps integrate learners into the economy.

For more information on how to maximise your B-BBEE points with a comprehensive strategy and GAP analysis, feel free to contact us at info@elevateadvisory.co.za or visit our website: elevateadvisory.co.za.

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