Author: Prianka Naidoo
The Skills Development Act (No. 97) was introduced in 1998 with the intention of improving the South African workforce’s productivity and skillset. The act was designed to provide a framework to help organisations enhance the capabilities of their employees, ultimately benefiting both individual career development and organisational growth.
Through this legislation, employees are given opportunities to advance in their careers and enhance their skills. This leads to increased personal development, which in turn contributes to higher productivity within the workplace.
The Skills Development Act is not just beneficial for employees, it also plays a vital role in the broader economic landscape by enabling businesses to harness the full potential of their human capital. By upskilling employees, businesses can stay relevant and competitive, adapting to industry changes and improving overall performance.
Businesses must first register with the relevant Sector Education and Training Authority (SETA). The specific SETA that is linked to your business sector should be identified in order to align with the appropriate training and development initiatives.
Mandatory grants and submission requirements
Employers who pay the SDL are eligible for mandatory grants, which can help offset training costs. To qualify for these grants, businesses must submit their reports for the relevant reporting period.
The submission must include key documents such as a Work Skills Plan (WSP) and an Annual Training Record (ATR), both of which outline your organisation’s training objectives and achievements for the reporting period. Additionally, employers must submit training registers, receipts and any documentation associated with employee training.
Businesses that pay the 1% SDL levy are eligible to receive up to 20% of the total SDL they have paid back through these grants, providing financial support to continue investing in employee skills development.
By meeting these requirements and participating in the skills development programme, your business not only remains compliant but also gains valuable opportunities for employee growth and organisational success. Skills development is a long-term investment that reaps rewards in the form of a highly skilled and motivated workforce.
How can we assist?
HRTorQue offers comprehensive assistance with your skills development submissions. Our services include the completion and submission of the Annual Training Report and Work Skills Plan, as well as facilitating skills development committee meetings. We also conduct employee skills audits, skills gap analysis and training needs assessments. Additionally, we help develop targeted training plans to ensure your organisation meets its skills development goals effectively.
For more information contact us on [email protected].