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Summary HRD2602 - Topic 02: Workbook 04 to 06
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HRD2602 – TRAINING AND DEVELOPMENT PRACTICESTOPIC 2: Skills Development in Organisations
WORKBOOK 04
The Skills Development Act and the Skills Development Levies Act
Both these Acts have a direct impact on your work in the HRD environment.
4.2 THE SKILLS DEVELOPMENT ACT (No. 97 of 1998)
4.2.1 Introduction
As a manager, the professional
The Skills Development Act (No. 97 of 1998) (Department of Labour 1998) was signed by the President of the
Republic of South Africa on 20 October 1998, repealing the following laws:
• the Manpower Training Act (No. 56 of 1981)
• the Guidance and Placement Act (No. 62 of 1981)
• the Local Government Training Act (No. 41 of 1985)
• sections 78 to 87 of the Telecommunications Act (No. 106 of 1996).
A major amendment to the Skills Development Act was introduced in 2008 which mainly include the broadening of
the purpose:
➢ to provide anew for the functions of the National Skills Authority and its composition as well as SETAs
➢ to provide for apprenticeships
➢ to increase the quality and quantity of artisans; and to provide for Quality Council for Trades and
Occupations
The Skills Development Amendment Act (No.26 of 2011) was approved in 2012 with a focus on the functions of
SETAs and Skills Authorities.
4.2.2 Purpose of the Act
Section 2 of the Act sets out the various purposes of the Act
❖ to develop the skills of the South African workforce
❖ to increase the levels of investment in education and training in the labour market and to improve the
return on investment
❖ to use the workplace as an active learning environment, to provide employees with the opportunities to
acquire new skills, to provide opportunities for new entrants to the labour market to gain work experience
❖ to employ persons who find it difficult to be employed
❖ to encourage workers to participate in learning programmes
❖ to improve the employment prospects of persons previously disadvantaged by unfair discrimination and to
redress those disadvantages through training and education to ensure the quality of learning in and for the
workplace
❖ to assist work-seekers to find work, retrenched workers to re-enter the labour market and employers to
find qualified employees
❖ to provide and regulate employment services
The purposes of the Act can be achieved by
• The National Skills authority (NSA)
• National skills fund
• Skills development levy grant scheme
• Sector Educational & Training Authorities (SETAs)
• Labour centres
• Quality Council for Trades & Occupations (QCTO)
• Department of Labour provincial offices
• Artisan development & institutes of Sectoral Occupational Excellence
• Skills Development Forum in each province
• National Artisan Moderating body
Page 1 of 15
Summary by L Petzer
, HRD2602 – TRAINING AND DEVELOPMENT PRACTICES
4.2.3 National Skills Authority (NSA)
Main functions of the NSA are to advise the Minister of Labour on:
A national skills development policy
A national skills development strategy
Guidelines to implement the strategy
The allocation of subsidies from the National Skills Fund
Any regulations to be made
NSA to liaise with SETAs on:
the national skills development policy
the national skills strategy
• to report to the Minister
• to conduct investigations
• to exercise any other powers and duties arising out of the Act
NSA includes representatives from:
• organised business and labour
• organisations of communities and development interests (women, youth, disabled)
• the State
• education and training providers
• members with experience in providing employment services
• non-voting member nominated by South African Qualifications Authority
The structures for implementing the Skills Development Act
4.2.4 Sector Education and Training Authorities (SETA)
The SETAs are the key to the effective implementation of the Skills Development Act and the Skills Development
Levies Act. SETA is described in Section 3 of the Act. The Minister of Higher Education and Training may establish a
SETA with a constitution for any national economy sector
1. Agricultural Sector Education Training Authority AgriSETA www.agriseta.org.za
2. Banking Sector Education Training Authority BankSETA www.bankseta.org.za
3. Construction Education and Training Authority CetaSETA www.ceta.org.za
4. Chemical Industries Sector Education Training Authority ChietaSETA www.chieta.org.za
5. Culture, Arts, Tourism, Hospitality and Sports Sector Education Training Authority CathsSETA www.cathsseta.org.za
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Summary by L Petzer
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