Business Studies
The impact of recent legislation on
businesses
The Skills Development Act (SDA) (No. 97 of 1998)
The SDA plays a significant role in ensuring that the South African
workforce is skilled and contributes to the productivity and economic
growth of the country.
The purpose of the SDA
Develops the skills of South Africans in order to improve productivity in the
workplace.
Encourages businesses to improve the skills of new and existing workers.
Invests in the education and training of the South African workforce.
Purposefully redresses imbalances of the past through education and
training.
The impact of the SDA on businesses
Positives/advantages
Increases the number of skilled employees with scarce skills.
Improves the return on investment (ROI) in education and training.
Increases investment in education and training in the South African labour
market.
Improves the delivery of services of businesses because employees are
working at an optimal level.
Negative/disadvantages
The Skills Development Levy (SDL) places an additional burden on
financially struggling businesses.
The SDA initiative of the government may not always be supported by all
businesses.
Businesses fi nd it diffi cult to monitor/control the implementation of this
Act.
Productivity in the workplace may decline, as employees have to attend
learnerships during work hours.
Actions regarded as non-compliance by the SDA
Preventing qualified employees from gaining access to training
opportunities and learnerships
Promoting skills development unfairly, for example, where only certain
employees benefit.
, Falsifying information in any documentation such as tax documentation
submitted to SARS and workplace skills plans.
Providing employment services for gain without being registered as an
employer or registered with the relevant SETA.
Penalties/consequences for non-compliance with
the SDA
Businesses that do not comply with the SDA may receive a compliance
order from the Labour Court. This order forces the business to comply with
the SDA.
Businesses who neglect to comply with the SDA may receive large fines
and may be given a jail sentence (imprisonment), which will be dependent
on the severity of the non-compliance.
Businesses that do not pay the SDL may not offer learnerships to
employees or claim grants from the SDA.
The business’s operating licence may be revoked, which may prevent the
business from continuing any form of operations.
Ways in which businesses can comply with the
SDA
Display a summary of the SDA in the business where it is visible to all
employees.
Provide opportunities to all employees to improve their skills.
Assess the skills of employees to determine/ascertain the areas in which
skills development is needed.
Promote and encourage employees to improve their skills and to actively
engage in learnerships.
The role/functions of SETAs (Sector and
Education Training Authorities) in
supporting/implementing the SDA
A SETA is a vocational skills training organisation in South Africa that
identifies/outlines/manages and creates learnerships, internships, and
apprenticeships in the various business sectors.
The role/function of SETAs is to:
register various learnerships and learning programmes.
promote and establish various learnerships.
, approve the workplace skills plans and annual training reports submitted
by businesses.
develop skills plans that are in line with the aims of the National Skills
Development Strategy (NSDS).
Funding of SETAs
Skills Development levies are paid by employers to SARS as a collecting
agency for the government
Donations/Grants received from the public/businesses/CSI programmes.
Surplus funds from government institutions.
Funds received from rendering their services.
Learnerships
The meaning of learnerships
Learnerships are theoretical/practical training opportunities that lead to a
recognised occupational qualification.
It includes a training course with learning material as well as practical
work experience.
Agreement between a learner/trainee, employer and a training provider.
It may sometimes include employment for a specifi ed period after the
learnership is completed.
The table below shows the NQF for learnership levels 1 – 4:
The National Skills Development Strategy (NSDS)
and the Human Resource Development Strategy
(HRDS)
The NSDS aims to develop skills, improve education, support and provide
training to the South African workforce, improve economic growth and in
the process, alleviate poverty and reduce unemployment.
The impact of recent legislation on
businesses
The Skills Development Act (SDA) (No. 97 of 1998)
The SDA plays a significant role in ensuring that the South African
workforce is skilled and contributes to the productivity and economic
growth of the country.
The purpose of the SDA
Develops the skills of South Africans in order to improve productivity in the
workplace.
Encourages businesses to improve the skills of new and existing workers.
Invests in the education and training of the South African workforce.
Purposefully redresses imbalances of the past through education and
training.
The impact of the SDA on businesses
Positives/advantages
Increases the number of skilled employees with scarce skills.
Improves the return on investment (ROI) in education and training.
Increases investment in education and training in the South African labour
market.
Improves the delivery of services of businesses because employees are
working at an optimal level.
Negative/disadvantages
The Skills Development Levy (SDL) places an additional burden on
financially struggling businesses.
The SDA initiative of the government may not always be supported by all
businesses.
Businesses fi nd it diffi cult to monitor/control the implementation of this
Act.
Productivity in the workplace may decline, as employees have to attend
learnerships during work hours.
Actions regarded as non-compliance by the SDA
Preventing qualified employees from gaining access to training
opportunities and learnerships
Promoting skills development unfairly, for example, where only certain
employees benefit.
, Falsifying information in any documentation such as tax documentation
submitted to SARS and workplace skills plans.
Providing employment services for gain without being registered as an
employer or registered with the relevant SETA.
Penalties/consequences for non-compliance with
the SDA
Businesses that do not comply with the SDA may receive a compliance
order from the Labour Court. This order forces the business to comply with
the SDA.
Businesses who neglect to comply with the SDA may receive large fines
and may be given a jail sentence (imprisonment), which will be dependent
on the severity of the non-compliance.
Businesses that do not pay the SDL may not offer learnerships to
employees or claim grants from the SDA.
The business’s operating licence may be revoked, which may prevent the
business from continuing any form of operations.
Ways in which businesses can comply with the
SDA
Display a summary of the SDA in the business where it is visible to all
employees.
Provide opportunities to all employees to improve their skills.
Assess the skills of employees to determine/ascertain the areas in which
skills development is needed.
Promote and encourage employees to improve their skills and to actively
engage in learnerships.
The role/functions of SETAs (Sector and
Education Training Authorities) in
supporting/implementing the SDA
A SETA is a vocational skills training organisation in South Africa that
identifies/outlines/manages and creates learnerships, internships, and
apprenticeships in the various business sectors.
The role/function of SETAs is to:
register various learnerships and learning programmes.
promote and establish various learnerships.
, approve the workplace skills plans and annual training reports submitted
by businesses.
develop skills plans that are in line with the aims of the National Skills
Development Strategy (NSDS).
Funding of SETAs
Skills Development levies are paid by employers to SARS as a collecting
agency for the government
Donations/Grants received from the public/businesses/CSI programmes.
Surplus funds from government institutions.
Funds received from rendering their services.
Learnerships
The meaning of learnerships
Learnerships are theoretical/practical training opportunities that lead to a
recognised occupational qualification.
It includes a training course with learning material as well as practical
work experience.
Agreement between a learner/trainee, employer and a training provider.
It may sometimes include employment for a specifi ed period after the
learnership is completed.
The table below shows the NQF for learnership levels 1 – 4:
The National Skills Development Strategy (NSDS)
and the Human Resource Development Strategy
(HRDS)
The NSDS aims to develop skills, improve education, support and provide
training to the South African workforce, improve economic growth and in
the process, alleviate poverty and reduce unemployment.
