Summary of the Skills Development Act, no. 97 of 1998

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Skills development is important to growth in South Africa.
Skills development is important to growth in South Africa.
This Act aims to improve the skills of workers by promoting education and training in the workplace. It governs the National Skills Authority and Fund, the skills development levy-grant scheme, the Sector Education Training Authorities (SETAs), labour centres and the Skills Development Planning Unit. These bodies encourage partnerships between the public and private sectors of the economy and help new entrants into the labour market to find work.

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[edit] What Is the National Skills Authority?

The National Skills Authority is the body that advises the Minister of Labour on policy and strategy related to skills development. It liaises with SETAs and reports to the Minister on progress on skills development. It is made up of a number of persons appointed by the Minister (representing a wide range of interests).

[edit] What Are SETAs?

Sector Education Training Authorities or SETAs are responsible for developing skills plans and running learnerships and skills programmes in their specific sectors. (For example, the BANKSETA offers an asset-based finance administration learnership at various levels.) SETAs identify suitable workplaces for practical training, support the development of learning materials and help with finalising learnerships.

They are financed mainly by skills development levies collected by participating companies in its sector, and money from the National Skills Fund.

[edit] What Do Labour Centres Do?

Labour centres help people who are looking for jobs and employers who are looking for workers. They offer employment services for workers, employers and training providers, and try to improve such services in rural communities. Labour centres keep a register of work-seekers, vacancies and work opportunities. They also help qualifying workers to go on special education and training programmes, to find employment, to start income-generating projects and to participate in special employment programmes.

[edit] The Skills Development Planning Unit

The Skills Development Planning Unit works out what skills each sector needs, looking at the economy, the State and South Africa as a whole. It gives information on skills needs to the National Skills Authority, SETAs and education and training providers as well as the organs of state.

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