B-BBEE Codes, Sector Codes, Charters & pending changes

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Most companies operating in South Africa are familiar with terms such as B-BBEE, Codes, Sector Codes and Charters.

Nevertheless, the nature of your business and the industry or sector in which your company operates, are both vital aspects which need to be considered when establishing whether a Sector Code or Transformation Charter will most likely dictate how your company’s B-BBEE status will be determined.

As each organization is different based on size, industry and its nature of business, specific targets and measurement criteria need to be created for each applicable industry in order to ensure that organizations and their businesses are measured equally and fairly for B-BBEE compliance. As such, the B-BBEE Act aims to rectify this issue by making provision for Transformation Charters. These Transformation Charters can either be gazetted in terms of Section 9 or Section 12 of the act, with the difference between the two being that:

 

  1. Codes, Sector Codes, Clarification and/or Practice Notes gazetted in terms of Section 9, are legally binding on organs of state and public entities, with
  2. Charters gazetted in terms of Section 12, not being legally binding as it merely expresses an industry’s commitment to transformation. In cases where Transformation Charters have been gazetted, the 2013 General Amended Codes will need to be relied on for B-BBEE verification purposes.

 

To date, the following Sector Codes have been gazetted, all of which being effective from date of issue:

 

Codes / Sector Codes Effective Date
Transport Sector Code – General Notice, Preamble & definitions 21 August 2009
Transport Sector Code – Domestic Aviation 21 August 2009
Transport Sector Code – Forwarding & Clearing 21 August 2009
Transport Sector Code – Maritime Transport & Services Industry 21 August 2009
Transport Sector Code – Public Sector 21 August 2009
Transport Sector Code – Rail 21 August 2009
Transport Sector Code – Road Freight 21 August 2009
Transport Sector Code – Taxi 21 August 2009
Transport Sector Code – Bus, Commuter & Coach Services 21 August 2009
Amended Tourism Sector Code 20 November 2015
MAC Sector Code – Marketing, Advertising & Communication 01 April 2016
Amended ICT Sector Code – Information and Communication Technology 07 November 2016
Amended Forestry Sector Code 21 April 2017
Amended Property Sector Code 09 June 2017
Amended Construction Sector Code 01 December 2017
Amended Financial Services Sector Code 01 December 2017
Amended Agri Sector Code 08 December 2017
Defence Sector Code 09 November 2018

 

It is important to note that the following still needs to be finalised and gazetted:

 

Codes / Sector Codes Status Issue Date
Draft Amended Transport Sector Codes Final draft gazetted for comment 06 February 2016
Draft Amended Chartered Accountancy Sector Codes Final draft gazetted for comment 26 April 2019
Draft Chartered Accountancy Sector Code First draft issued for comment 26 April 2019
Temporary Employment Services Sector Codes First draft issued for comment 01 April 2021
Draft Event Technical and Production Services First draft issued for comment 03 September 2021
Draft Legal Sector Code Final draft gazetted for comment 22 July 2022

 

Currently two (2) Transformation Charters were enacted as part of amendments to Acts, being:

 

Codes / Sector Codes Issue Date
Mining Charter 27 September 2018
Proclamation re: Petroleum & Liquid Fuels Sector Transformation Charter 13 September 2017

 

If you are unsure of which Sector Code is applicable to your business or you are questioning whether you have been verified on the correct appliable Codes or Sector Codes, kindly contact LabourNet for assistance.

For more information on the above topic, please contact the LabourNet Helpdesk at

0861 LABNET (0861 522638).

Not yet a LabourNet client, but would like to know more about our service and products?

Email us: support@labournet.com

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