Skills Development Act

The Skills Development Act 97 of 1998 is a law enacted in South Africa in 1998.

This Act was promulgated by government in 1998, in the midst of high levels of unemployment, low levels of investment in the South African labour market, pronounced disparities in income distribution, inequality of opportunity as a result of apartheid and poverty. (Brendan and Down, 2000). Through this Act, the government aimed to address two main priorities, i.e. the need to improve skills and increase productivity in order to compete successfully in the global economy, and the need to reverse apartheid imbalances and to create a more inclusive and cohesive society (Mpilo Mthethwa , 2014).

IMPLEMENTATION & AMENDMENTS - Update 2016

In line with the overall government objectives set out above, the purposes of the Act are as follows (Sec. 2(1)):

The Republic of South Africa defines skills development as the following:

To provide an institutional framework to devise and implement national, sector and workplace strategies to develop and improve the skills of the South African work force; to integrate those strategies within the National Qualifications Framework contemplated in the South African Qualifications Authority Act, 1995; to provide for: learnerships that lead to recognised occupational qualifications; to provide financing of skills development by means of a levy-grant scheme and a National Skills Fund; to provide for and regulate employment services; and to provide for matters connected therewith.

To give effect to its transformational goals, the government created a platform for all stakeholders to give input in the implementation of the Act in order to protect their interests, while discharging their respective responsibilities to their constituencies. The government also created various key institutions as vehicles for the fulfillment of its goals. Finally, the government provided for the financing of the activities associated with skills development via the Skills Development Levies Act 9 of 1999. Key stakeholders in the successful implementation of the Act are:

Government:

Organised Labour participates at all three levels of implementation. At a strategic level, organised labour forms part of the National Skills Authority that advises the department of labour on policy and strategy formulation. At sector level, organized labour participates in the Sector Education Training Authorities (SETA) that design and implement sector specific skills plans. At company level, labour participates in the formulation of workplace skills plans and reports, which address both company and sector training needs. Organized labour secures the growth and employability of their members by participating in the various structures.

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