Chapter 1 - Recent legislation - Gr12 - Skills Development Act Flashcards
What is the aim/ purpose of the Skills development act?
● To develop the skills of people in South Africa to improve productivity
● To get businesses to invest in education and training of workers who are already employed and to improve on the return on that investment
● To encourages businesses to improve the skills of their workers
● To improve the chances of getting a job for previously disadvantages people
● To redress the disadvantages through education and training
● To encourage workers to participate in learnership and training programmes to become more skilled
Discuss/Explain/Evaluate the impact (advantages and/or disadvantages/negatives) of the Skills development ACT on businesses.
Advantages
- Improves productivity as employees acquire increased skills
- Increased competitiveness of the business
- The number of skilled employees increases in areas where these skills are scarce
- Preference is given to developing skills specifically required by employers
- Employers are expected to encourage their workers to participate in learnerships and training programmes. This entitles employers to tax concessions
- Disadvantages
- Employees attend learnerships/ training during work hours which could affect production
- A person must be appointed to implement, manage and control the learnership
- The time spent on up-skilling employees is wasted if they leave
- Leads to increased costs and paperwork for business enterprises that contribute to the National Skills Fund
- Only companies with a staff payroll of over R500 000 per year can claim the Skills Development levy
Impact of the Skills development act on EMPLOYEES
Advantages
- Increases skills and recognises skills required in the workplace
- Promotes self-employment
- Assists the unemployed and retrenched to become employable by increasing skills and providing work experience
- Increases self-esteem when learnerships are completed
- Improves the quality of life of workers as they would be in a higher salary band
Disadvantages
- Employees depend on the employer to support the development programme and provide opportunities to attend and complete learnerships
Suggest/Recommend ways in which businesses can comply with the skills development act (SDA)
- Employers who collect Pay as you Earn (PAYE) must register with one of the 20 SETA’s.
- 1% of an employer’s payroll must be paid over to the SETA
- Employers may reclaim 70% of this levy if they submit a Workplace Skills Plan and provide evidence that it was carried out
- Certain companies will be exempt from paying levies for example Public Benefit Organisations
- Companies who do not pay the Skills Development Levy may not offer learnerships or claim grants from the Skills development Fund
· Outline/Discuss penalties/consequences for non-compliance with the Skills Developent Act.
- Any person of business convicted of an offence, such as not complying with the SDA or trying to influence people performing a function in terms of the act may be sentenced to a fine or penalty (penalty = 10% of the amount) or imprisonment for a period not exceeding a year
- A labour inspector could order the business to stop operating should the business be found guilty of illegal practices
Outline/Explain actions regarded as discriminatory by the skills development Act
- No employee may be discriminated against and prevented from signing up for a learnership due to, among others, their work, position in the workplace or age
- The Employer may not furnish false information in any prescribed documents
- Provide employment services for gain without being registered as an employer
- Conduct the business of a private employment services agency in contravention of the SDA
Outline/Discuss/Explain the role/functions of SETA’s
- Develop Sector Skills Plans in accordance with the national Skills Development Strategy
- Implement Sector Skills plans (as per the need of each sector)
- Promote learnerships and learning programmes by identifying workplaces for practical work experiences
- Register learnership agreements for learning programmes so that workers may receive a qualification that is recognised by the industry
- Support the development of training materials that is relevant to the different sectors
- To apply for accreditation from the South African Qualifications authority (SAQA)
· Discuss the Skills Development Levy.
- It was introduced in 1999 to ensure that private companies also participate in and contribute to the development of skills in South Africa
- Any business that has a payroll of more than R500 000 per annum must pay 1% of that amount
- They can claim back a portion of the levy paid.
- Distribution of Skills development levy
Explain how SETA’s are funded
- A SETA receives funding from
- Skills development levies
- The National Skills Fund
- Grants and donations
- Interest that was earned on investments
- Income earned from services rendered
- Money received from other sources
Explain the National Skills Development Strategy and the Human Resource Development Strategy (i.e. Sector Education and Training Authorities
NATIONAL SKILLS
DEVELOPMENT STRATEGY
- Encourages good quality training in the workplace to ensure on-going development of skills.
- Provides for the participation of government, organised business and labour.
- Improves social development through economic development.
- Indicates how Sector Education and Training Authorities (SETAs) should use the money allocated from the Skills Development Levy.
- Improves access to training programmes.
- Provides career/vocational guidance/ training centres.
HUMAN RESOURCES
DEVELOPMENT STRATEGY
- Addresses skills shortages in the South African workforce
- Aims at achieving faster economic growth/ higher employment levels and reduced levels of poverty.
- Promotes social development and social justice which helps to alleviate poverty.
- Develops short term and long-term workforce skills.
- Improves the supply of skills.
- Increases employee participation in lifelong learning.
