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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Industry Charters

Financial Services  Charter

Code Series FS300: The Measurement of the Employment Equity Element of Broad-Based Black Economic Empowerment

3. Key Measurement Principles

 

3.1 Subject matter of this paragraph: This paragraph relates to the following statements within the CoGP:

 

3.1.1 Code 300 Statement 300; and

 

3.1.2 Code 800 Statement 803.

 

3.2 Applicability of the CoGP: The provisions and principles contained in the relevant statements apply to all financial institutions, subject to the following variations:

 

3.2.1 The following terms, when used in this Code, have these meanings:

 

3.2.1.1 Management means employees of a financial institution who are members of the occupational categories of Senior, Middle and Junior Management as determined using the EE Regulations and as defined in Code 300 of the DTI Codes.

 

3.2.2 The measurement principle referred to as the "Adjusted Recognition for Gender" does not apply to measurement of Employment Equity contributions under this Code.

 

3.2.2.1 No Measured Entity shall receive any bonus points under the Employment Equity scorecard unless they have achieved a sub-minimum of 40% of each of the targets set out on the Employment Equity scorecard in respect of the applicable targets.

 

3.2.3 In order for a Measured Entity to achieve bonus points at a particular level, the entity needs to exceed the EAP target.

 

3.2.4 Measured entities should put jn place processes to review and demonstrate the reasonability of salaries relative to corporate title and occupational categories with regard to Employment Equity regulations.

 

3.2.5 A Measured Entity exempt from filing returns with the Department of Labour must compile its data for calculating its score under the Employment Equity scorecard using the guidelines set out in the Employment Equity Act and its EE regulations.

 

3.2.6 If the organisational structure of a Measured Entity does not distinguish between Middle and Junior Management it can consolidate those Measurement categories against the target for Junior Management. The weighting points for the Measurement Categories must be adjusted as follows:

 

3.2.6.1 Senior Management – 4,5 points

 

3.2.6.2 Black Women Senior Management – 3 points

 

3.2.6.3 Junior Management – 3,5 points

 

3.2.6.4 Black Women Junior Management – 3 points