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. |