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Skills Development Act (SDA), 1998 (Act 97 of 1998)
Impact of SDA on Business
Advantages |
Disadvanages |
Encourages businesses to improves the skills of their workers |
Many Service Providers that offer training services are not SAQA accredited |
Redresses the imbalances of the past through education and training. |
Implementation of the SDA can be difficult to monitor and control. |
Develops skills of the people in South Africa to improve productivity, |
Increases cost as the process requires a large amount of paperwork. |
Invest in education and training of workers. |
Skills Development may not always address training of employees. |
Encourages workers to participate in learning programmes. |
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Purpose of the SDA
Develops skills of people in South Africa to improve productivity. |
Encourages businesses to improve the skills of their workers. |
Redresses the imbalances of the past through education anf training. |
Invest in education and traning of workers. |
Encourages workers to participate in learning programs. |
How SETA's are Funded
Funds received for rendering their services. |
Receive surplus funds from government institutions. |
Donations and grants from the public. |
Role/Functions of SETA's in supporting the SDA
Register Learnership Agreements. |
Promote and establish learnerships. |
Report to the Director General. |
Provide accreditation to skills development facilitators. |
Consequences of Non-Compliance
Businesses that do no tpay the Skills Development Levy may not be offered learnership/claim grants from the SDA. |
A labour inspector could order the business to stop operating. |
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Meaning of Learnerships
Theoretical/Pactical training opportunities that can lead to a recognised occupational qualification. |
May include employment for a specified period after the learnership is completed. |
Results in a qualification registered on the NQF. |
It includes a structured component as well as practical work experience. |
Ways in which Business can Comply with the SDA
Provide all employees with the opportunity to improve skills. |
Employees who collect SDL should register with SARS. |
Encourage employeees to participate in learnerships and other training programs. |
1% of an employer's payroll must be paid over to SARS. |
Business should register with the relevant SETAs. |
Actions Regarded as Non-Compliance
Providing employment services for gain without being registered as an employer. |
Providing fraudulent information in any prescribed document. |
Preventing employees from signing for a learnership due to age or position. |
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