1. Use the Commu-Tech case study available in Lesson 0 on the module site and under
Additional Resources to complete all three parts of this assessment.
REPORT: ANALYSIS OF COMMU-TECH'S REPORTING AND RECORD-KEEPING
OBLIGATIONS UNDER THE SOUTH AFRICAN SKILLS DEVELOPMENT SYSTEM
To: Ms Engelbrecht, HR Manager
From: [Your Name/Title]
Date: [Date]
Subject: Compliance with Skills Development Legislation and Access to Grants
Executive Summary
This report analyses Commu-Tech's statutory obligations concerning reporting and record-keeping
within the South African skills development framework. As a levy-paying entity with more than 50
employees, Commu-Tech is mandated to submit a Workplace Skills Plan (WSP) and an Annual
Training Report (ATR) to the Manufacturing, Engineering and Related Services Sector Education
and Training Authority (merSETA). While the company has established foundational training
practices, several significant gaps and operational issues limit its ability to fully comply with
legislative requirements and, consequently, to access maximum grant funding, including
discretionary grants. Key challenges include inadequate documentation for training evaluations, a
lack of impact measurement, poor training attendance, and a mismatch between planned and
delivered training. Addressing these issues is critical for the organisation to recover its skills
development levy and strengthen its B-BBEE scorecard.
Introduction
The Skills Development Act and the Skills Development Levies Act mandate that qualifying
businesses in South Africa participate in the national skills development system. The primary vehicle
for this participation is the submission of a Workplace Skills Plan (WSP) and an Annual Training
Report (ATR) to the relevant Sector Education and Training Authority (SETA). For Commu-Tech,
this SETA is merSETA. Compliance with these reporting and record-keeping requirements is not
only a legal obligation but also the mechanism through which the company can claim a mandatory
grant and become eligible for discretionary grants to fund critical skills development initiatives
(HRD3701, Study Guide, p. 43). This report will outline Commu-Tech's specific responsibilities and
critically evaluate the extent to which its current training practices enable or limit its compliance and
access to these financial incentives.