Comprehensive Summary of Skills Development Act

THE SKILLS DEVELOPMENT ACT, 1998

The purpose of the Act

The short supply of experienced employees is a severe obstacle to the competition of our sector. The SKILLS DEVELOPMENT ACT intends to broaden the understanding and also competencies of the work force in order to boost efficiency as well as employment.

The Key Purposes of the Act are:

  • To enhance the quality of life of employees, their prospects of work and also labour mobility
  • To boost performance in the work environment and also the competition of employers
  • To increase the degrees of financial investment in education and also training in the work market and also to enhance the return on that financial investment
  • To promote self-employment
  • To improve the delivery of services
  • Secret Issues as well as Commitments of the Act

The objectives of the Act are to be attained by establishing an institutional and economic framework, which will certainly include the National Skills Authority (NSA), the National Skills Fund (NSF), the Field Education And Learning as well as SETAs as well as establishments in the Department of Labour.

The composition of the NSA is as follows

  • Chairperson
  • Executive Officer
  • Organised service (BSA and Nafcoc).
  • Arranged labour (Cosatu, Nactu as well as Fedusa).
  • Federal government divisions (Labour, Education And Learning, DPSA, DTI as well as DACST).
  • Local Reps (Youth, Women People with impairments, Rural as well as Civic).
  • Reps from education and training providers (college, more education, grown-up basic education and also training, and personal).
  • The Minister of labour is mandated by the Act to establish and also, where necessary, help a SETA for any type of nationwide economic sector. A SETA needs to create as well as implement a skills plan, within the national skills development structures, by developing sector work skills plans. It needs to promote learnerships by determining workplaces for proper work experiences. SETAs have the function to keep an eye on the top quality of education and also training in their industries. They need to liaise with Employment Services, the NSA and also the provinces. A SETA needs to report to the Director-General of the Division of Work on the execution of its industry skills strategies and its revenue and expense. The SETAs are financed for the levies gathered from its market and monies paid to it form the National Skills Fund.

One of the functions of a SETA is to establish a learnership that has an organized understanding programme as well as a practical work experience of a defined nature as well as period. The learnership should lead to a credentials that is recognised by SAQA

The composition of a SETA must, in regards to area 11 of the Act, include:.

  • Organised companies (including sme’s).
  • Arranged labour.
  • Relevant provisional government divisions.
  • Relevant professional bodies (optional).
  • Representatives develop the appropriate negotiating council (optional).
  • The Director-General of the Department of Work is obliged in regards to section 22 of the Act to establish a Skills Growth Preparation System in the Division and also offer it with the personnel as well as financial resources required for the efficiency of its functions. The features of the Device are:.

to research study and also evaluate the labour market in order to determine abilities development needs for South Africa as whole, each sector of the economic situation and body organs of state.
help in the formulation of the countries abilities development method and also field abilities development strategies.
to provide info on skills to the Minister, NSA, SETA, education and training carriers, and also organs of state.
The Director-General isrequired to set up labour centres in the Department. The functions of the work centres are to supply employment services for workers, companies, training carriers and also rural areas. The work centres are to execute the following:.

to register work-seekers.
to register openings and job opportunities.
to aid prescribed classifications of persons–.
to enter special education and training programs.
to find work.
to begin inbound generating projects.
to participate in special employment programs.
The Act established a Fund for projects that have been recognized in the national skills growth technique as top priority or various other jobs the Director-General views as essential to the accomplishment of the functions of the Act. The Skills Growth Levies Act of 1999 offers the collection, management, dispensation as well as guideline of the monies in the Fund.

Lastly, the Act provides for the public sector employer in the national and provincial spheres of government to budget for at the very least one percent of its pay-roll for education and also training of its employees with effect from 1 April 2000 as well as to contribute funds to a SETA where necessary.