1. Skills Development Act (SDA), 1998 (Act 97 of 1998)

Question 1

1.1 Purpose of the SDA

Answer 1

• Encourages businesses to improve the skills of their workers.
• Redresses the imbalance of the past through education and training.
• Develops skills of people in South Africa to improve productivity.
• Invests in education and training of workers.
• Encourages workers to participate in learning programs.

Question 2

1.2 (A) Impact of the SDA on businesses (ADVANTAGES)

Answer 2

• Encourages businesses to improve the skills of their workers.
• Redresses the imbalances of the past through education and training.
• Develops the skills of the people in South Africa to improve productivity.
• Invests in education and training of workers.
• Encourages workers to participate in learning programs.

Question 3

1.2 (B) Impact of the SDA on businesses (DISADVANTAGES)

Answer 3

• Many service providers that offer training are not SAQA accredited.
• Implementation of the SDA can be difficult to monitor and control.
• Increases cost as the process requires a large amount of paperwork.
• Skills Development may not always address the training needs of employees.

Question 4

1.3 Actions regarded as non-compliance

Answer 4

• Providing employment services for gain without being registered as an employer.
• Providing fraudulent or false information in any prescribed document.
• Preventing employees from signing for a learnership due to age or position.

Question 5

1.4 Possible penalties or consequences for non-compliance to the SDA

Answer 5

• Business that does not pay the Skills Development Levy may not offer learnership or claim grants.
• A labour inspector could order the business to stop operating if found guilty of illegal practices.

Question 6

1.5 Ways in which businesses can comply with the SDA

Answer 6

• Provide all employees with the opportunity to improve skills.
• Employees who collect SDL should register with SARS.
• Encourage employees to participate in leaderships and other training programs.
• One percent of an employer’s payroll must be paid over to the SARS.
• Business should register with the relevant SETAs.

Question 7

1.6 Role or functions of SETA’s in supporting the SDA

Answer 7

• Register learnership agreements.
• Promotes and establishes learnerships.
• Reports to the Director General.
• Provide accreditation to skills development facilitators.

Question 8

1.7 How SETA’s are funded

Answer 8

• Funds received for rendering their services.
• Receive surplus funds from government institutions.
• Donations and grants from the public.

Question 9

1.8 Meaning of learnerships

Answer 9

• Theoretical or practical training opportunities that can lead to a recognized occupational qualification.
• May include employment for a specified period after the learnership is completed.
• Results in a qualification registered on the NQF.
• It includes structured components as well as practical work experience.

Question 10

1.9 National Skills Development Strategy (NSDS) and the Human Resource Development Strategy (HRDS)

Answer 10

• National Skills Development Strategy (NSDS): The NSDS is a government policy aimed at improving the skills and employability of South Africans.
• Human Resource Development Strategy (HRDS): The HRDS is a broader strategy focused on education, training, and employment.

Question 11

1.9.1 National Skills Development Strategy (NSDS)

Answer 11

• Increases the skills of the public sector to improve service delivery.
• It makes better use of workplace - based skills development.
• Aims to address the low level of language and mathematical skills amongst the youth and adults.

Question 12

1.9.2 Human Resource Development Strategy (HRDS)

Answer 12

• Address skills shortages in the South African workforce.
• Improves the supply of skills.
• Develop short-term and long-term workforce skills.
• Increases employee participation in lifelong learning.