Transformation in South Africa is a topic I hold dear to my heart. It’s not just about ticking boxes on compliance checklists; it’s about the lives changed, opportunities created, and the promises kept to generations who were previously excluded from meaningful economic participation. When we talk about Broad-Based Black Economic Empowerment (B-BBEE), it’s easy to get lost in the complexities of codes and regulations, but at its core, it’s about transformation with tangible outcomes.
One of the most crucial aspects of the B-BBEE framework is Absorption—ensuring that training, internships, and learnerships lead to real employment. Yet, the process of proving absorption during B-BBEE verification can be daunting. The evidence required is precise, and understanding it can be a game-changer for businesses striving to meet their compliance obligations while genuinely contributing to the economic empowerment of South Africans.
Absorption: Turning Opportunities Into Careers
The concept of absorption is not new, but its importance cannot be overstated. It represents the bridge between training initiatives and permanent employment. For businesses undergoing B-BBEE verification, absorption demonstrates that their efforts in skills development and training are not in vain. It shows that they are creating career paths, not just temporary placements.
However, as I’ve seen in my own professional engagements, many businesses struggle with understanding what qualifies as evidence for absorption. This misunderstanding can lead to missed opportunities to maximise B-BBEE points and, more importantly, undermines the very goal of transformation.
The Evidence That Counts
To make absorption claims during a B-BBEE verification, specific evidence is required. Some time ago, the B-BBEE Policy Unit published a helpful FAQ document outlining exactly what’s needed. Here’s what they clarified:
Learnership Completion Certificate or Agreement:
- Proof that the learner has completed their training or is formally enrolled in a learnership programme.
- An Affidavit by the Learner: A sworn statement from the learner confirming their participation and completion of the programme.
- An Interview: Evidence of a formal discussion with the learner, often to evaluate their readiness for employment.
- Offer and Acceptance of Employment: Documentation showing that the learner has been offered a job and has accepted it.
- Permanent Employment Contract, Confirmation Letter, and Payslip: The most critical pieces, these prove that the learner has transitioned into a permanent role, fulfilling the definition of “absorption” under Schedule 1 of the Amended General B-BBEE Codes of Good Practice or relevant sector codes.Each of these pieces of evidence plays a vital role in demonstrating the commitment of a business to fostering long-term employment.
- Why the Details Matter – It’s tempting to view these requirements as bureaucratic red tape, but I see them differently. They’re safeguards to ensure that absorption is not just a paper exercise. Too often in the past, training programmes were implemented with no follow-through, leaving participants without sustainable opportunities. These evidence requirements ensure accountability and transparency, holding businesses to their promises. For instance, a permanent employment contract is more than just a document—it’s a commitment to the individual and their future. It symbolises stability, a regular income, and the chance to build a career.
As someone who has seen the transformative impact of a stable job, I can’t overemphasise its importance.Challenges Businesses FaceDespite the clarity provided by the B-BBEE Policy Unit, many businesses still find the process of gathering evidence for absorption challenging. One common issue is inadequate record-keeping. Without proper documentation, proving compliance becomes nearly impossible. I’ve worked with organisations that struggled to locate payslips or contracts from past learnerships, resulting in lost B-BBEE points.
Another challenge is misunderstanding the definition of permanent employment under the codes. For example, contracts that are not fully compliant with the Amended Codes’ definition of absorption might inadvertently disqualify an otherwise valid claim.I believe businesses must approach B-BBEE compliance with both a strategic mindset and a genuine commitment to transformation. It’s not enough to invest in skills development without a plan for absorption. Think of it this way: you wouldn’t build a bridge halfway across a river and expect it to serve its purpose. In the same vein, training without absorption is an incomplete solution