PURPOSE OF THE SKILLS DEVELOPMENT ACT
- Develops skills of the people of South Africa in order to improve productivity.
- Invest in the education and training of workers
- Improves chances of getting a job for previously disadvantaged people
- Encourages workers to participate in learning programmes
- Redresses imbalances of the past through education and training
- Encourages business to improve skills of their workers
- Improves the chances of getting a job for previously disadvantaged people.
IMPACT OF THE SDA ON BUSINESS POSITIVES / ADVANTAGES
- Trains employees to improve productivity in the workplace
- Promotes self- employment and black entrepreneurship
- increase the return on investment in education and training
- Business could become globally more competitive
- Increases the number of skilled employees in areas where skills are scarce
- Encourages on going skills development and learning to sustain the improvement of skills development
- Improves employment opportunities and labour movement of workers from previously disadvantaged groups
ADVANTAGES OF THE SKILLS DEVELOPMENT ACT TO THE WORK FORCE
- Improving employment opportunity to workers
- Promoting overall efficient in the work place
- Improving the quality of education by requiring that all training programmes must be accredited with the relevant authorities
- Developing skills are by the employees
- Trained employees are more productive
- Address discrimination through training
DISADVANTAGES OF THE SKILLS DEVELOPMENT ACT
- Difficult to access the performances of various seta’s
- Difficult to access the contribution of SETAs towards skills develoment
- Leads to increased cost and paperwork for business enterprises that contribute towards the national skills fund
- Workers need regular training to meet the demand of a dynamic working environment
DISCRIMINATORY ACTIONS ACCORDING TO THE SDA
- Preventing employees from signing for a learnership due to their age or position in the workplace.
- Unfair promotion of skills and development/training to certain employees.
- Providing employment services for gain without being registered as an employer.
- Furnishing false information in any prescribed document
PENALTIES FOR NON COMPLIANCE
- Businesses that do not pay the Skills Development Levy may not offer leadership/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.
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
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.
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- Fronting is discouraged, as it may lead to the disqualification of a business,s entire scorecard/BBBEE status.
- Share prices BBBEE compliant business are likely to increase as they attract more businesses
- Businesses that support small micro, medium enterprises [SMMES] may increase their own BBBEE ratings
- Complying with BBBEE requirements give a businesses experience/exposure to be able to provide better employment opportunities/staff development
NATIONAL SKILLS DEVELOPMENT STRATEGY AND THE HUMAN RESOURCE DEVELOPMENT STRATEGY
| National Skills Development | Human Resources Development Strategy Strategy |
| Encourages good quality training in the – development of skills to ensure on-going African workforce | • Addresses skills shortages in the South workplace . |
| 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. |
| Increases/Improves access to training programmes. | Improves the supply of skills. |
| Builds/Provides career/vocational learning. guidance/training centres. | Increases employee participation in lifelong learning. |
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