Impact of Recent Legislation on Businesses- Skills Development Act [2]

......... THE SKILLS DEVELOPMENT ACT CONTINUED........

Penalties for non-compliance 

          Businesses that do not pay the Skills Development Levy may not offer learnerships/claim grants from the SDA.

          A labour inspector could order the business to stop operating should the business be found guilty of illegal practices.

 

Ways in which businesses can comply with the SDA  

          Employers who collect PAYE should register with SETAs.

          One per cent of an employer's payroll has to be paid over to the SETA.

          Businesses should register with SARS in the area in which their business is classified (in terms of the SETA).

          Employers should submit a workplace skills plan and provide evidence that it was implemented.

          Businesses with more than 50 employees must appoint a skills development facilitator.

          Assess the skills of employees to determine areas in which skills development are needed.

          Encourage employees to participate in learnerships and other training programmes.

          Provide all employees with the opportunity to improve their skills.

          Businesses should register with the relevant SETAs.

           

 

Role/functions of SETAs

          Report to the Director General.

          Promote and establishes learnerships.

          Collect levies and pays out grants as required.

          Provide accreditation for skills development facilitators.

          Register learnership agreements/learning programmes.

          Approve workplace skills plans and annual training reports.

          Monitor/Evaluate the actual training by service providers.

          Allocate grants to employers, education and training providers.

          Oversee training in different sectors of the South African economy.

          Develop skills plans in line with the National Skills Development Strategy

          Draw up skills development plans for their specific economic sectors.

          Provide training material/programmes for skills development facilitators.

          Pay out grants to companies that are complying with the requirements of the Skills Development Act.

          Promote learnerships and learning programmes by identifying suitable workplaces for practical work experience.

 

Funding of SETAs

          Skills Development levies paid by employers e.g. 80% is distributed to the different SETA and 20% is paid into the National Skills Fund.

          Donations and grants from the public Surplus funds from government institutions 

          Funds received from rendering their services.

 

National Skills Development Strategy and the Human Resource Development Strategy

 

 

National Skills Development 

Strategy

Human Resources Development Strategy

- Encourages good quality training in the workplace to ensure on-going development of skills.

- Addresses skills shortages in the South African workforce.

- Provides for the participation of government, organised business and labour.

- Aims at achieving faster economic growth/higher employment levels and reduced levels of poverty.

-   Improves social development  through economic development.

- Promotes social development/social justice and helps to alleviate  poverty.

- Indicates how Sector Education and Training Authorities (SETAs) should use the money allocated from the Skills Development Levy.

- Develops short term and long term workforce skills.

-   Increases/Improves       access       to       training programmes.

- Improves the supply of skills.

-   Builds/Provides career/vocational guidance/training centres.

- Increases employee participation in lifelong learning.

 

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