THE IMPACT OF RECENT LEGISLATION ON BUSINESSES
Key concepts
Affirmative action: the policy and process of providing preferences in employment
opportunities for previously disadvantaged people.
Bargaining councils: negotiations between trade union representatives and employer
organisations on labour related issues such as demand for higher wages or improved
working conditions.
BBBEE Scorecard: BBBEE scorecards measure a business’s compliance with BBBEE
and a certificate is issued to the business that stipulates their BBBEE rating.
Collective agreement: an agreement entered between a trade union and an
employer organisation concerning the terms of employment for specific matters.
Collective bargaining: process of engaging and solving labour disputes collectively
between trade union representatives and employer organisations
Compensation Fund: this fund provides compensation to employees who are injured
or contract diseases through the course of their employment.
Credit providers: businesses that sell goods and services on credit/offer credit
purchasing options/provide credit facilities/credit products to customers.
Debt counsellors: provide professional advice/counselling to private citizens/
members of the public/businesses/organisations that are over indebted
/offer methods of debt repayments.
Discrimination: the intentional unjust/prejudicial/differential treatment of
people/social groups based on the grounds of race/age/gender
/sexual orientation /disability/religion.
Disputes: an argument/disagreement between people/groups of people in the
workplace.
Employment contract: a legally binding agreement between the employer and the
employee.
Equity: fair and equal treatment in the workplace/society.
Learnerships: theoretical/practical training opportunities that leads to a recognised
occupational qualification.
Levies: imposition/collection of money by the government, usually in the form of tax.
Lockout: occurs when the employer prevents (literally locks out) employees from
entering the business premises during strike action and labour dispute resolution
processes to prevent looting and damages to property.
National Credit Regulator (NCR): the regulatory body that applies the NCA, educates
consumers about their rights, and monitors/administers and ensures adherence of
the NCA and the credit industry.
Ombudsman: a state official responsible for investigating complaints of private
citizens/members of the public that are made against
businesses/organisations/government.
, SETAs: a vocational skills training organisation in South Africa that identifies/
outlines/manages and creates learnerships, internships, and apprenticeships within
its jurisdiction.
Strikes: partial/complete concerted refusal to work by a group of employees for the
purpose of remedying a grievance/dispute regarding any matter of mutual interest
between the employer and employees.
Workplace injuries: injuries that take place while conducting/performing workplace
duties/responsibilities.
The Skills Development Act (SDA)
The purpose of the SDA
• Invests in the education and training of the South African workforce by developing the
skills of South Africans in order to improve productivity in the workplace.
• Purposefully redresses imbalances of the past through education and training.
• Improves the job prospects of previously disadvantaged people.
• Provides the systematic implementation of strategies on a national, sector and workplace
basis.
The impact of the SDA on businesses (advantages)
• Improves productivity in the workplace because employees are empowered through
training programmes, thus becoming more knowledgeable.
• Increases global competitiveness of South African businesses, as more employees are
trained with upgraded, relevant and 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 implementation of the SDA is time-consuming, expensive, prescriptive and
administratively burdensome.
• 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 find it difficult 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.
• Preventing employees access to learnerships based on any discriminatory grounds such a
pregnancy, age, position, language, gender, sexual orientation, culture or religion.
,• 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.
• A labour inspector may indefinitely stop the operations of the business if the business is
found guilty of illegal practices.
• 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.
• Employers who collect PAYE (Pay As You Earn tax) should register with SETA.
• Employers whose payroll exceeds R500 000 (half a million rand) per annum should pay 1%
of it over to SETA.
• Employers should submit a workplace skills plan and provide evidence that it was
implemented.
The role of SETAs (Sector and Education Training Authorities)
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).
• develop/build skills development plans for the various economic sectors.
• promote learnerships and learning programmes by correctly identifying the best
workplaces for practical work experience.
Funding of SETAs
• 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.
The meaning of learnerships:
• Learnerships are theoretical/practical training opportunities that lead to a recognised
occupational qualification.
• They provide structured learning programmes that are completed during work hours for a
specified period.
• 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 specified period after the learnership is
completed.
The National Skills Development Strategy (NSDS) and the Human Resource
Development Strategy (HRDS)
What is the purpose of the National Skills Development Strategy?
to guide and coordinate skills development efforts in the country. It is a comprehensive
policy framework developed by the Department of Higher Education and Training (DHET).
The NSDS is periodically updated to align with the changing economic and social needs of
South Africa.
Knowledge refers to the theoretical understanding of a subject, skill is the practical
application of that knowledge. Both are essential for success in the modern workplace and
fostering a balance between the two is key to creating a competent and adaptable
workforce.
Explanation of the National Skills Development Strategy (NSDS)
• Increases access to programmes that train people.
• Addresses the low level/deficit/shortage of language and mathematical skills among the
youth and adults.
• Promotes the public FET college system that has programmes to meet the skills needed by
SETAs/local/regional/provincial/national organisations.
• Makes better use of/enhances/improves workplace-based skills development.
• Encourages/supports small business/community-training groups/NGOs/ worker-initiated
training initiatives.
• Increases/improves the skills of the public sector to improve service delivery.
• Builds career/vocational guidance/training centres.
• Sets out/outlines the responsibilities of other education and training stakeholders.
• Improves social development through economic development.
Key concepts
Affirmative action: the policy and process of providing preferences in employment
opportunities for previously disadvantaged people.
Bargaining councils: negotiations between trade union representatives and employer
organisations on labour related issues such as demand for higher wages or improved
working conditions.
BBBEE Scorecard: BBBEE scorecards measure a business’s compliance with BBBEE
and a certificate is issued to the business that stipulates their BBBEE rating.
Collective agreement: an agreement entered between a trade union and an
employer organisation concerning the terms of employment for specific matters.
Collective bargaining: process of engaging and solving labour disputes collectively
between trade union representatives and employer organisations
Compensation Fund: this fund provides compensation to employees who are injured
or contract diseases through the course of their employment.
Credit providers: businesses that sell goods and services on credit/offer credit
purchasing options/provide credit facilities/credit products to customers.
Debt counsellors: provide professional advice/counselling to private citizens/
members of the public/businesses/organisations that are over indebted
/offer methods of debt repayments.
Discrimination: the intentional unjust/prejudicial/differential treatment of
people/social groups based on the grounds of race/age/gender
/sexual orientation /disability/religion.
Disputes: an argument/disagreement between people/groups of people in the
workplace.
Employment contract: a legally binding agreement between the employer and the
employee.
Equity: fair and equal treatment in the workplace/society.
Learnerships: theoretical/practical training opportunities that leads to a recognised
occupational qualification.
Levies: imposition/collection of money by the government, usually in the form of tax.
Lockout: occurs when the employer prevents (literally locks out) employees from
entering the business premises during strike action and labour dispute resolution
processes to prevent looting and damages to property.
National Credit Regulator (NCR): the regulatory body that applies the NCA, educates
consumers about their rights, and monitors/administers and ensures adherence of
the NCA and the credit industry.
Ombudsman: a state official responsible for investigating complaints of private
citizens/members of the public that are made against
businesses/organisations/government.
, SETAs: a vocational skills training organisation in South Africa that identifies/
outlines/manages and creates learnerships, internships, and apprenticeships within
its jurisdiction.
Strikes: partial/complete concerted refusal to work by a group of employees for the
purpose of remedying a grievance/dispute regarding any matter of mutual interest
between the employer and employees.
Workplace injuries: injuries that take place while conducting/performing workplace
duties/responsibilities.
The Skills Development Act (SDA)
The purpose of the SDA
• Invests in the education and training of the South African workforce by developing the
skills of South Africans in order to improve productivity in the workplace.
• Purposefully redresses imbalances of the past through education and training.
• Improves the job prospects of previously disadvantaged people.
• Provides the systematic implementation of strategies on a national, sector and workplace
basis.
The impact of the SDA on businesses (advantages)
• Improves productivity in the workplace because employees are empowered through
training programmes, thus becoming more knowledgeable.
• Increases global competitiveness of South African businesses, as more employees are
trained with upgraded, relevant and 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 implementation of the SDA is time-consuming, expensive, prescriptive and
administratively burdensome.
• 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 find it difficult 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.
• Preventing employees access to learnerships based on any discriminatory grounds such a
pregnancy, age, position, language, gender, sexual orientation, culture or religion.
,• 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.
• A labour inspector may indefinitely stop the operations of the business if the business is
found guilty of illegal practices.
• 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.
• Employers who collect PAYE (Pay As You Earn tax) should register with SETA.
• Employers whose payroll exceeds R500 000 (half a million rand) per annum should pay 1%
of it over to SETA.
• Employers should submit a workplace skills plan and provide evidence that it was
implemented.
The role of SETAs (Sector and Education Training Authorities)
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).
• develop/build skills development plans for the various economic sectors.
• promote learnerships and learning programmes by correctly identifying the best
workplaces for practical work experience.
Funding of SETAs
• 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.
The meaning of learnerships:
• Learnerships are theoretical/practical training opportunities that lead to a recognised
occupational qualification.
• They provide structured learning programmes that are completed during work hours for a
specified period.
• 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 specified period after the learnership is
completed.
The National Skills Development Strategy (NSDS) and the Human Resource
Development Strategy (HRDS)
What is the purpose of the National Skills Development Strategy?
to guide and coordinate skills development efforts in the country. It is a comprehensive
policy framework developed by the Department of Higher Education and Training (DHET).
The NSDS is periodically updated to align with the changing economic and social needs of
South Africa.
Knowledge refers to the theoretical understanding of a subject, skill is the practical
application of that knowledge. Both are essential for success in the modern workplace and
fostering a balance between the two is key to creating a competent and adaptable
workforce.
Explanation of the National Skills Development Strategy (NSDS)
• Increases access to programmes that train people.
• Addresses the low level/deficit/shortage of language and mathematical skills among the
youth and adults.
• Promotes the public FET college system that has programmes to meet the skills needed by
SETAs/local/regional/provincial/national organisations.
• Makes better use of/enhances/improves workplace-based skills development.
• Encourages/supports small business/community-training groups/NGOs/ worker-initiated
training initiatives.
• Increases/improves the skills of the public sector to improve service delivery.
• Builds career/vocational guidance/training centres.
• Sets out/outlines the responsibilities of other education and training stakeholders.
• Improves social development through economic development.
