1. The Skills Development Act.
Purpose of the Skill Development Act.
Develops the skills of people in South Africa in order to improve productivity.
Invests in education and training of workers.
Encourages businesses to improve the skills of their workers.
Redresses imbalance of the past through education and training.
Impact of the Skill Development Act
Advantages
Trains employees to improve productivity in the workplace.
Workplace discrimination can be addressed through training.
Promotes self-employment and black entrepreneurship.
Increases the return on investment in education and training.
Disadvantages.
Increases cost as the process requires a large amount of paperwork.
Implementation of the SDA can be difficult to monitor and control.
Skills programmes may not always address training needs of employees.
Many service providers that offer training services are that not SAQA accredited.
Discriminatory actions according to the SDA
Preventing employees from signing for a learner ship 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 learner
ships/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.
, Role/functions of SETAs
Report to the Director General.
Promote and establishes learner ships.
Collect levies and pays out grants as required.
Provide accreditation for skills development facilitators.
Register learner ship agreements/learning programmes.
Approve workplace skills plans and annual training reports.
Monitor/Evaluate the actual training by service providers.
Allocate grants to employers, education and training providers.
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.
2.LABOUR RELATIONS ACT/LRA
Purpose of the Labour Relations
Provides a framework/structure for labour relations between employers and
employees.
Promotes collective bargaining at the workplace.
Promotes workplace forums to accommodate employees in decision making.
Establishes Labour Courts and Labour Appeal Courts.
Promotes simple procedures for the registration of trade unions and employer
organisations.
Provides for the right to lock-out by the employer as a reaction to lengthy
strikes.
Impact of the LRA on business
Advantages
Promotes a healthy relationship between the employer and employees
Protects the rights of businesses in labour related issues.
Labour disputes are settled quicker and are less expensive.
Protect employers who embark on lawful lockouts when negotiations between
parties fail.
Provides specific guidelines for employers on correct and fair disciplinary
procedures.
Disadvantages
, Productivity may decrease if employees are allowed to participate in the
activities of trade unions during work time.
Costs of labour increases because of legal strikes
Reduced global competitiveness due to lower productivity
Employers may have to disclose information about workplace issues to union
representatives that could be the core of their competitive advantage.
Discriminatory actions according to the LRA
Unfair/Illegal dismissal of employees.
Refusing the establishment of workplace forums.
Forcing employees to give up trade union membership.
Preventing employees from joining trade unions.
Refusing leave to trade union representatives to attend trade union activities.
Penalties for non-compliance with the LRA
The employer may be forced to enter into a dispute resolution process.
Businesses will be fined if they fail to comply with the agreements reached
during the dispute resolution process.
Businesses that fail to comply with this Act may risk financial costs e.g.
legal/CCMA fees and fines.
Ways in which businesses can comply with the LRA
Businesses must allow employees to form trade unions/participate in union
activities/legal strikes.
Allow/Support the establishment of workplace forums.
Employees should not be unfairly/illegally dismissed
Employers should not breach/ignore any collective agreement.
The rights of employers and employees according to LRA
Rights of employers
Employers have the right to lockout employees who engage in
unprotected/illegal strike/labour action.
Form employer organisations.
Form a bargaining council for collective bargaining purposes.
Right not to pay an employee who has taken part in a protected strike for
services/work they did not do during the strike.
Rights of employees
Purpose of the Skill Development Act.
Develops the skills of people in South Africa in order to improve productivity.
Invests in education and training of workers.
Encourages businesses to improve the skills of their workers.
Redresses imbalance of the past through education and training.
Impact of the Skill Development Act
Advantages
Trains employees to improve productivity in the workplace.
Workplace discrimination can be addressed through training.
Promotes self-employment and black entrepreneurship.
Increases the return on investment in education and training.
Disadvantages.
Increases cost as the process requires a large amount of paperwork.
Implementation of the SDA can be difficult to monitor and control.
Skills programmes may not always address training needs of employees.
Many service providers that offer training services are that not SAQA accredited.
Discriminatory actions according to the SDA
Preventing employees from signing for a learner ship 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 learner
ships/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.
, Role/functions of SETAs
Report to the Director General.
Promote and establishes learner ships.
Collect levies and pays out grants as required.
Provide accreditation for skills development facilitators.
Register learner ship agreements/learning programmes.
Approve workplace skills plans and annual training reports.
Monitor/Evaluate the actual training by service providers.
Allocate grants to employers, education and training providers.
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.
2.LABOUR RELATIONS ACT/LRA
Purpose of the Labour Relations
Provides a framework/structure for labour relations between employers and
employees.
Promotes collective bargaining at the workplace.
Promotes workplace forums to accommodate employees in decision making.
Establishes Labour Courts and Labour Appeal Courts.
Promotes simple procedures for the registration of trade unions and employer
organisations.
Provides for the right to lock-out by the employer as a reaction to lengthy
strikes.
Impact of the LRA on business
Advantages
Promotes a healthy relationship between the employer and employees
Protects the rights of businesses in labour related issues.
Labour disputes are settled quicker and are less expensive.
Protect employers who embark on lawful lockouts when negotiations between
parties fail.
Provides specific guidelines for employers on correct and fair disciplinary
procedures.
Disadvantages
, Productivity may decrease if employees are allowed to participate in the
activities of trade unions during work time.
Costs of labour increases because of legal strikes
Reduced global competitiveness due to lower productivity
Employers may have to disclose information about workplace issues to union
representatives that could be the core of their competitive advantage.
Discriminatory actions according to the LRA
Unfair/Illegal dismissal of employees.
Refusing the establishment of workplace forums.
Forcing employees to give up trade union membership.
Preventing employees from joining trade unions.
Refusing leave to trade union representatives to attend trade union activities.
Penalties for non-compliance with the LRA
The employer may be forced to enter into a dispute resolution process.
Businesses will be fined if they fail to comply with the agreements reached
during the dispute resolution process.
Businesses that fail to comply with this Act may risk financial costs e.g.
legal/CCMA fees and fines.
Ways in which businesses can comply with the LRA
Businesses must allow employees to form trade unions/participate in union
activities/legal strikes.
Allow/Support the establishment of workplace forums.
Employees should not be unfairly/illegally dismissed
Employers should not breach/ignore any collective agreement.
The rights of employers and employees according to LRA
Rights of employers
Employers have the right to lockout employees who engage in
unprotected/illegal strike/labour action.
Form employer organisations.
Form a bargaining council for collective bargaining purposes.
Right not to pay an employee who has taken part in a protected strike for
services/work they did not do during the strike.
Rights of employees
