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Skills Development Act, 1998 Cheat Sheet by

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.

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.
 

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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