, lOMoARcPSD|58953644
BUSINESS ENVIRONMENTS
IMPACT OF RECENT LEGISLATION
1. SKILLS DEVELOPMENT ACT
1.1 THE PURPOSE OF THE ACT
Briefly describe/Describe/Explain/Discuss the purpose of the SDA.
• Redresses imbalances of the past through education and training.
• Develops the skills of people in South Africa to improve productivity.
• Invests in education and training of workers.
• Improves the chances of getting a job for previously disadvantaged
people.
• Encourages workers to participate in learning programmes.
• Encourages businesses to improve the skills of their workers.
1.2 THE IMPACT OF THE ACT ON BUSINESSES
Discuss/Explain/Evaluate the impact (positive/advantages and /or
negative/disadvantages) of the SDA on businesses.
POSITIVES / ADVANTAGES
• Business could become globally more competitive.
• Trains employees to improve productivity in the workplace.
• Workplace is used as an active learning environment where employees
can gain practical job experience.
• Increases the number of skilled employees in areas where these skills are
scarce.
• Workplace discrimination can be addressed through training.
• Increases the return on investment in education and training
• 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
• Promotes self-employment and black entrepreneurship
NEGATIVES / DISADVANTAGES
• Increases cost as the process requires a large amount of paperwork.
• Implementation of the SDA can be difficult to monitor and control.
• Employees attend learnerships during work hours which affect their
productivity.
• Costly for businesses to employ a person to implement, manage and
control learnerships.
• The time and money spent on improving employee skills is wasted if they
leave the business.
• Skills programmes may not always address training needs of employees.
• Skills Development Levy could be an extra burden to financially struggling
businesses.
• It may be monitored and controlled by government departments that do
not have education and training as their key priorities.
• The SETAs may not be well organised and many courses offered by
companies may not have unit standards that relate to the course content.
• Many training service providers are not SAQA accredited.
• Many businesses may not support this government initiative.
IMPACT OF RECENT LEGISLATION 1
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1.3 ACTIONS THAT ARE CONSIDERED NON-COMPLIANT
Briefly describe/Explain/Discuss actions that are considered non-
compliance with 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.
1.4 CONSEQUENCES OF NON-COMPLIANCE
Briefly describe/Explain/Discuss punitive measures/ consequences for
non-compliance with the SDA.
• 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.
1.5 WAYS IN WHICH BUSINESSES CAN COMPLY WITH THE ACT
Suggest/Recommend ways in which businesses can comply with the
SDA.
• Employers who collect PAYE should register with the relevant SETAs.
• One per cent (1%) of an employer's payroll has to be paid over to 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.
1.6 FUNCTIONS OF SETAS
Briefly describe/Explain/Discuss the role/functions of SETAs in support
of the SDA.
• Develop skills plans in line with the National Skills Development Strategy
• Draw up skills development plans for their specific economic sectors.
• Approve workplace skills plans and annual training reports
• Allocate grants to employers, education and training providers.
• Pay out grants to companies that are complying with the requirements of
the Skills Development Act.
• Monitor/Evaluate the actual training by service providers.
• Promote and establishes learnerships.
• Promote learnerships and learning programmes by identifying suitable
workplaces for practical work experience.
• Register learnership agreements/learning programmes.
• Provide training material/programmes for skills development facilitators.
• Provide accreditation for skills development facilitators.
• Report to the Director General.
IMPACT OF RECENT LEGISLATION 2
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1.7 FUNDING OF SETA’S
Explain how SETA’s are funded.
• Skills Development levies are paid by employers to SARS as a collecting
agency for the government.
• Employers who have a salary bill that exceeds R500 000 per annum, should
pay one percent (1%) of their annual salaries as a levy.
• The different SETAs receive 80% of the levy for organisational expenses
and the remaining 20% is paid to the National Skills Fund.
• Donations/Grants received from the public/businesses/CSI programmes.
• Surplus funds from government institutions.
• Funds received from rendering their services.
1.8 MEANING OF LEARNERSHIPS
Define/Expand on the meaning of learnership.
A contract between a learner, an employer and training providers for a
specific period that leads to the acquisition of a national qualification.
1.9 NATIONAL SKILLS DEVELOPMENT STRATEGY AND THE HUMAN
RESOURCE DEVELOPMENT STRATEGY
Explain the National Skills Development Strategy and the Human
Resource Development Strategy
1.9.1 Purpose of the National Skills Development Strategy (NSDS)
• Increase access to programmes that train people.
• Address the low level of language and mathematical skills among the
youth and adults.
• Make better use of workplace-based skills development.
• Increase the skills of the public sector to improve service delivery.
• Build career/vocational guidance/training centres.
• Guides work of SETA's /the use of the National Skills Fund.
• Sets out the responsibilities of other education and training stakeholders.
• Improves social development through economic development.
1.9.2 The purpose of the Human Resource Development Strategy (HRDS)
• 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.
IMPACT OF RECENT LEGISLATION 3
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BUSINESS ENVIRONMENTS
IMPACT OF RECENT LEGISLATION
1. SKILLS DEVELOPMENT ACT
1.1 THE PURPOSE OF THE ACT
Briefly describe/Describe/Explain/Discuss the purpose of the SDA.
• Redresses imbalances of the past through education and training.
• Develops the skills of people in South Africa to improve productivity.
• Invests in education and training of workers.
• Improves the chances of getting a job for previously disadvantaged
people.
• Encourages workers to participate in learning programmes.
• Encourages businesses to improve the skills of their workers.
1.2 THE IMPACT OF THE ACT ON BUSINESSES
Discuss/Explain/Evaluate the impact (positive/advantages and /or
negative/disadvantages) of the SDA on businesses.
POSITIVES / ADVANTAGES
• Business could become globally more competitive.
• Trains employees to improve productivity in the workplace.
• Workplace is used as an active learning environment where employees
can gain practical job experience.
• Increases the number of skilled employees in areas where these skills are
scarce.
• Workplace discrimination can be addressed through training.
• Increases the return on investment in education and training
• 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
• Promotes self-employment and black entrepreneurship
NEGATIVES / DISADVANTAGES
• Increases cost as the process requires a large amount of paperwork.
• Implementation of the SDA can be difficult to monitor and control.
• Employees attend learnerships during work hours which affect their
productivity.
• Costly for businesses to employ a person to implement, manage and
control learnerships.
• The time and money spent on improving employee skills is wasted if they
leave the business.
• Skills programmes may not always address training needs of employees.
• Skills Development Levy could be an extra burden to financially struggling
businesses.
• It may be monitored and controlled by government departments that do
not have education and training as their key priorities.
• The SETAs may not be well organised and many courses offered by
companies may not have unit standards that relate to the course content.
• Many training service providers are not SAQA accredited.
• Many businesses may not support this government initiative.
IMPACT OF RECENT LEGISLATION 1
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, lOMoARcPSD|58953644
1.3 ACTIONS THAT ARE CONSIDERED NON-COMPLIANT
Briefly describe/Explain/Discuss actions that are considered non-
compliance with 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.
1.4 CONSEQUENCES OF NON-COMPLIANCE
Briefly describe/Explain/Discuss punitive measures/ consequences for
non-compliance with the SDA.
• 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.
1.5 WAYS IN WHICH BUSINESSES CAN COMPLY WITH THE ACT
Suggest/Recommend ways in which businesses can comply with the
SDA.
• Employers who collect PAYE should register with the relevant SETAs.
• One per cent (1%) of an employer's payroll has to be paid over to 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.
1.6 FUNCTIONS OF SETAS
Briefly describe/Explain/Discuss the role/functions of SETAs in support
of the SDA.
• Develop skills plans in line with the National Skills Development Strategy
• Draw up skills development plans for their specific economic sectors.
• Approve workplace skills plans and annual training reports
• Allocate grants to employers, education and training providers.
• Pay out grants to companies that are complying with the requirements of
the Skills Development Act.
• Monitor/Evaluate the actual training by service providers.
• Promote and establishes learnerships.
• Promote learnerships and learning programmes by identifying suitable
workplaces for practical work experience.
• Register learnership agreements/learning programmes.
• Provide training material/programmes for skills development facilitators.
• Provide accreditation for skills development facilitators.
• Report to the Director General.
IMPACT OF RECENT LEGISLATION 2
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, lOMoARcPSD|58953644
1.7 FUNDING OF SETA’S
Explain how SETA’s are funded.
• Skills Development levies are paid by employers to SARS as a collecting
agency for the government.
• Employers who have a salary bill that exceeds R500 000 per annum, should
pay one percent (1%) of their annual salaries as a levy.
• The different SETAs receive 80% of the levy for organisational expenses
and the remaining 20% is paid to the National Skills Fund.
• Donations/Grants received from the public/businesses/CSI programmes.
• Surplus funds from government institutions.
• Funds received from rendering their services.
1.8 MEANING OF LEARNERSHIPS
Define/Expand on the meaning of learnership.
A contract between a learner, an employer and training providers for a
specific period that leads to the acquisition of a national qualification.
1.9 NATIONAL SKILLS DEVELOPMENT STRATEGY AND THE HUMAN
RESOURCE DEVELOPMENT STRATEGY
Explain the National Skills Development Strategy and the Human
Resource Development Strategy
1.9.1 Purpose of the National Skills Development Strategy (NSDS)
• Increase access to programmes that train people.
• Address the low level of language and mathematical skills among the
youth and adults.
• Make better use of workplace-based skills development.
• Increase the skills of the public sector to improve service delivery.
• Build career/vocational guidance/training centres.
• Guides work of SETA's /the use of the National Skills Fund.
• Sets out the responsibilities of other education and training stakeholders.
• Improves social development through economic development.
1.9.2 The purpose of the Human Resource Development Strategy (HRDS)
• 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.
IMPACT OF RECENT LEGISLATION 3
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