1) Skills development act (SDA)

• Purpose

  • Invests in worker education and training.
  • Encourage workers in learning programs.
  • Encourage businesses to improve skills of workers.
• Impact

  Positives

  • Businesses become globally more competitive.
  • Promotes self-employment and black entrepreneurship.
  • Trains employees to improve productivity in workplace.
• Impact

  Negatives

  • Increases cost due to extensive paperwork.
  • Skills programs won't always meet employees needs.
  • Many businesses may not support this government initiative.
• Discriminatory actions

  • Unfair promotion of skills and development/ training to certain employees.
  • Furnishing false information in any document.
• Penalties for non-compliance

  • Businesses not paying Skills Development Levy can't offer learnerships or claim SDA grants.
  • Guilty verdict for illegal practices could lead to labour inspector ordering business to cease business operations.
• Ways to comply

  • Employers collecting PAYE must register with SETAs.
  • One percent of employer's payroll must be paid to the SETAs.
  • Business must register with SARS based on SETA classification.
• Role/ functions of SETAs

  • Report to the Director General.
  • Promote and establish learnership.
  • Collect levis and pay out grants.
• Funding of SETAs

  • Donations and grants from public.
  • Surplus funds from government organisations.
  • Funds received from rendering their services.
• The difference between National Skills Development Strategy (NSDS) and Human Resources Development Strategy (HRDS)

  • NSDS - encourages good quality workplace training for ongoing skills development.
  • HRDS - addresses skills shortages in South African workforce.
  • NSDS - improves social development through economic development.
  • HRDS - promotes social development/ social justice and helps alleviates poverty.
• The difference between National Skills Development Strategy (NSDS) and Human Resources Development Strategy (HRDS)

  • NSDS - increases/ improves access to training programmes.
  • HRDS - improves the supply of skills.
  • NSDS - builds/ provides career guidance.
  • HRDS - increases employee participation in lifelong learning.