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Summary Ch1 - Impact of recent legislation on business - Platinum Business Studies, ISBN: 9780636140127 Business Studies

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Summary of the Impact of recent South African legislation on Business's in the Macro Environment

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CHAPTER 1

1 SKILLS DEVELOPMENT ACT

PURPOSE

• Develop skills – improve productivity – this forces businesses to make investments on education
• Invests in education of workers already employed
• Change for previously disadvantaged to get a job – redress the imbalances of the past
• Encourages participation in learnership programmes – continuous skills development

SDA IMPACT
ADVANTAGES

• Trains employees – improve productivity
• Promotes black entrepreneurship
• Increases return on investment
• Workplace discrimination addressed
DISADVANTAGES

• Increases cost – lots of paperwork
• SDA can be difficult to implement and control
• Monitored by the government – skills aren’t their priority
• Many training isn’t SAQA accredited

DISCRIMINATORY ACTIONS

- Prevent employees from signing learnerships
- Unfair promotions of skills to only certain employees
- False information in any prescribed documents (lying)

PENALTIES

→ May not offer learnerships/ grants from SDA
→ A labour inspector could order to stop operations

WAYS TO COMPLY WITH SDA

• Employees who collect PAYE should register with SETA
• 1% of payroll has to be paid over to SETA
• Should submit a workplace skills plan and evidence of implementation
• Business with +50 employees – appoint skills development facilitator

ROLES OF SETA’s

1) Report to director general (below minister of labour)
2) Promote ad establish learnerships
3) Collect and distribute levies and pay out grants as required
4) Approve workplace skills plans and annual training reports – monitor effectiveness
5) Oversee training in different sectors of a SA economy

FUNDING OF SETA

• Skills development levies paid by employers
• Donations and grants from the public
• Surplus funds from the government
• Funds received from rendering services

, NATIONAL SKILLS DEVELOPMENT STRATEGY HUMAN RESOURCE DEVELOPMENT STRATEGY
• Encourage good quality training in workplace to • Address skills shortages in the South African
ensure ongoing skills development workplace
• Provides for the participation of government • Aims at achieving faster economic
organisation/ business and labour growth/higher levels of employment and
reduce poverty levels
• Improves social development through • Promotes social development/ social justice
economic development and helps alleviate poverty

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