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Trust Property Control Act 57 of 1988

SKILLS DEVELOPMENT ACT 97 OF 1998

(English text signed by the President)

[Assented To: 20 October 1998] [Commencement Date: 2 February 1999 – unless otherwise indicated]

as amended by:

Skills Development Levies Act 9 of 1999
[with effect from 1 September 1999] Skills Development Amendment Act 31 of 2003
[with effect from 14 November 2003] Skills Development Amendment Act 37 of 2008
[with effect from 6 April 2009] Higher Education Laws Amendment Acts 26 of 2010
[with effect from 7 December 2010]

ACT

To provide an institutional framework to devise and implement national, sector and
workplace strategies to develop and improve th e skills of the South African workforce; 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 provid e for the financing of skills development by
means of a levy-financing scheme and a National Skills Fund; to provide for and regulate
employment services; and to provide for matters connected therewith.
[Long title amended by s. 23 of Act 9/99]

ARRANGEMENT OF SECTIONS
[Arrangement of sections amended by s. 18 of Act 37/2008]

CHAPTER 1
DEFINITIONS, PURPOSE AND INTERPRETATION OF ACT

1. Definitions
2. Purposes of Act
3. Interpretation

CHAPTER 2
NATIONAL SKILLS AUTHORITY

4. Establishment of National Skills Authority
5. Functions of National Skills Authority
6. Composition of National Skills Authority and term and vacation of office
7. Constitution of National Skills Authority
8. Remuneration and administration of National Skills Authority

CHAPTER 3
SECTOR EDUCATION AND TRAINING AUTHORITIES

9. Establishment of SETA
9A. Amalgamation and dissolution of SETAs
10. Functions of SETA
10A. SETAs to conclude service level agreements
11. Composition of SETA
12. Chambers of SETA
13. Constitution of SETA
14. Finances of SETA
14A. Minister may issue written instructions to SETAs
15. Taking over administration of SETA

CHAPTER 4
LEARNERSHIPS

16. Learnerships
17. Learnership agreements
18. Contract of employment with learner
19. Disputes about learnerships

CHAPTER 5
SKILLS PROGRAMMES

20. Skills programmes
21. Disputes

CHAPTER 6
INSTITUTION IN DEPARTMENT OF LABOUR AND EMPLOYMENT SERVICES

22. Administration of Act by Department
23. Employment services
24. Registration of persons that provide employment services
25. Cancellation of registration of private employment services agency
26. Appeal against Director-General’s decision

CHAPTER 6A
ARTISAN DEVELOPMENT

26A. National artisan moderation body
26B. Listing of trades
26C. National register of artisans
26D. Trade tests

CHAPTER 6B
SKILLS DEVELOPMENT INSTITUTES

26E. Skills development institutes

CHAPTER 6C
QUALITY COUNCIL FOR TRADES AND OCCUPATIONS

26F. Policy on occupational standards and qualifications
26G. Establishment of QCTO
26H. Functions of QCTO
26I. Delegation of functions
26J. Regulations regarding occ upational standards and qualifications

CHAPTER 6D
WORKPLACE PRODUCTIVITY AND COMPETITIVENESS

26K. Establishment of Productivity South Africa
26L. Functions of Productivity South Africa
26M. Finances of Productivity South Africa
26N. Regulations regarding workpl ace productivity and competitiveness

CHAPTER 7
FINANCING SKILLS DEVELOPMENT

27. National Skills Fund
28. Use of money in Fund
29. Control and administration of Fund
30. Budget for training by public service employers
30A. Budget for training by national and provincial public entities
30B. National standard of good pr actice in skills development

CHAPTER 8
GENERAL

31. Jurisdiction of Labour Court
32. Monitoring, enforcement and legal proceedings
33. Offences
34. Penalties
35. Delegation
36. Regulations
37. Repeal of laws and transitional provisions
38. Act binds State
39. Short title and commencement

Schedule 1 – Repeal of laws
Schedule 2 – Transitional provisions
Schedule 2A – Transitional Provisions: Skills Development Amendment Act, 2008
Schedule 3 – Composition and constitution of QCTO
Schedule 4 – Composition and constitution of Productivity South Africa

CHAPTER 1

DEFINITIONS, PURPOSE AND APPLICATION OF ACT

1. Definitions

In this Act, unless the context otherwise indicates –

“apprenticeship” means a learnership in respect of a lis ted trade, and includes a trade-test in
respect of that trade;
[Definition of “apprenticeship” inse rted by s. 1 of Act 37/2008]

“artisan” means a person that has be en certified as competent to perform a listed trade in
accordance with this Act;
[Definition of “artisan” inserted by s. 1 of Act 37/2008]

“Basic Conditions of Employment Act” means the Basic Conditions of Employment Act,
1997 (Act No. 75 of 1997);

“Department” means the Department of Higher E ducation and Training, except in-

(a) sections 2 (1)(g) and (h), 2(2)(a)(v), (vi) and (xii), 5(4) (only with respect to Productivity
South Africa established by section 26K ), 22 (1), 23 (1)(a) and (d), (2) and (3), 24 , 25 ,
26 , 26K , 26L , 26M , 26N , 32 (2), 36 (o), (p) and (q), item 7 of Schedule 2A and Schedule
4; and

(b) sections 32 (1), 33 and 36 (a) and (s) and any other provision to the extent that these
provisions apply to “employment services” defined in section 1 or to Productivity South
Africa established by section 26K , but excluding section 23 (l)(b) and (c),

where it means the Department of Labour;
[Definition of “Department” substituted by s. 4 of Act 26/2010]

“designated groups” means black people, women and people with disabilities;
[Definition of “designated groups” in serted by s. 1 of Act 31/2003]

“Director-General” means the Director-General of Higher Education and Training;

[Definition of “Director-General” substituted by s. 4 of Act 26/2010]

“employee” means –

(a) any person, excluding an independent co ntractor, who works for another person or for
the State and who receives, or is entitl ed to receive, any remuneration; or

(b) any other person who in any manner assi sts in carrying on or conducting the business of
an employer, and “employed” and “employment” have corresponding meanings;

“employment services” means the provision of the service of –

(a) advising or counselling of workers on career choices eith er by the provision of
information or other approaches;

(b) assessment of work-seekers for –

(i) entry or re-entry into the labour market; or

(ii) education and training;

(c) the reference of work-seekers –

(i) to employers to apply for vacancies; or

(ii) to training provide rs for education and training;

(d) assistance of employers by –

(i) providing recruitment and placement services;

(ii) advising them on the availability of work-seekers with skills that match their
needs;

(iii) advising them on the retrenchment of employees and the development of social
plans;

(dA) procuring for or providing to a client other persons to render services to or perform
work for the client, irrespective of by wh om those persons are remunerated; or
[Para. (dA) inserted by s. 1 of Act 31/2003]

(e) any other prescribed employment service;

“government department” means any department or organisa tional component referred to in
Schedule 1 or 2 of the Public Service Act, 1994 (Proclamation No. 103 of 1994);

“Labour Court” means the Labour Court established by section 151 of the Labour Relations
Act, 1995 (Act No. 66 of 1995);

“learner” includes an apprentice;
[Definition of “learner” by s. 1 of Act 37/2008]

“learnership” includes an apprenticeship;
[Definition of “learnership” inserted by s. 1 of Act 37/2008]

“learning” means the acquisition of knowledge, unders tanding, values, skill, competence or
experience;
[Definition of “learning” inserted by s. 1 of Act 37/2008]

“learning programme” includes a learnership, an appren ticeship, a skills programme and
any other prescribed learning programme whic h includes a structured work experience
component;
[Definition of “learning programme” in serted by s. 1 of Act 37/2008]

“Minister” means the Minister of Higher E ducation and Training, except in-

(a) sections 2 (1)(g) and (h), 2(2)(a)(v), (vi) and (xii), 5(4) (only with respect to Productivity
South Africa established by section 26K ), 22 (1), 23 (1)(a) and (d), (2) and (3), 24 , 25 ,
26 , 26K , 26L , 26M , 26N , 32 (2), 36 (o), (p) and (q), item 7 of Schedule 2A and Schedule
4; and

(b) sections 32 (1), 33 and 36 (a) and (s) and any other provision to the extent that these
provisions apply to “employment services” defined in section 1 or to Productivity South
Africa established by section 26K , but excluding section 23 (1)(b) and (c),

where it means the Minister of Labour;
[Definition of “Minister” substituted by s. 4 of Act 26/2010]

“National Qualifications Framework” means the National Qualifications Framework
contemplated by the National Qualifications Framework Act, 2008;
[Definition of “National Qualif ications Framework” inserted by s. 1 of Act 37/2008]

“National Skills Authority” means the National Skills Authority established by section 4 ;

“national skills development policy” means the national skills development policy referred
to in
section 5 (1)(a)(i);

“national skills development strategy” means the national skills development strategy
referred to in
section 5 (1)(a)(ii);

“National Skills Fund” means the National Skills Fund established by section 27 ;

“NEDLAC” means the National Economic Developm ent and Labour Council established by
section 2 of the National Economic Development and Labour Council Act, 1994 (Act No. 35
of 1994);

“occupational qualification” means a qualification associated with a trade, occupation or
profession resulting from work-based learni ng and consisting of knowledge unit standards,
practical unit standards and wo rk experience unit standards;
[Definition of “occupational qualification” inserted by s. 1 of Act 37/2008]

“Occupational Qualifications Framework” means the sub-framework for occupational
qualifications which forms an integral part of the National Qualifications Framework;
[Definition of “Occupational Qualifications Framework” inserted by s. 1 of Act 37/2008]

“placement” means placing an individual in a placem ent opportunity, with due regard to the
Code of Good Practice on the Integration of Employment E quity in Human Resources
Policies and Practices in terms of the Employ ment Equity Act, 1998 (Act No. 55 of 1998);
[Definition of “placement” inserted by s. 1 of Act 37/2008]

“placement opportunity” means any opportunity for work or learning that could be offered
to an individual and includes a vacancy for em ployment, an opportunity for self-employment,
a learning programme and community service;
[Definition of “pl acement opportunity” inserted by s. 1 of Act 37/2008]

“prescribed” means prescribed by regulation;

“private employment services agency” means any person that provides employment
services for gain;
[Definition of “private employment services agency” inserted by s. 1 of Act 31/2003]

“Public Finance Management Act” means the Public Finance Management Act, 1999 (Act
No. 1 of 1999);
[Definition of “Public Finance Management Act” inserted by s. 1 of Act 31/2003]

“QCTO” means the Quality Council for Trades and Occupations established in terms of
section 26G ;
[Definition of “QCTO” insert ed by s. 1 of Act 37/2008]

“regulation” means a regulation made and in force in terms of this Act;
[Definition of “regulation” substituted by s. 1 of Act 31/2003]

“repealed Act” means-

(i) the Manpower Training Act, 1981 (Act No. 56 of 1981);

(ii) any law repealed by the Manpower Training Act, 1981, and any law repealed by such
an Act; and

(iii) any law listed in Schedule 1 to the Integration of Labour Laws Act, 1994 (Act No. 49
of 1994), dealing with training or skills development;
[Definition of “repealed Act” inse rted by s. 1 of Act 37/2008]

“service level agreement” means a service level agreem ent concluded in terms of section
10A ;
[Definition of “service level agreement” inserted by s. 1 of Act 31/2003]

“SETA” means a sector education and training authority establis hed in terms of section 9 (1);

“Skills Development Levies Act” means the Skills Development Levies Act, 1999;
[Definition of “Skills Development Levies Act” substituted by s. 23 of Act 9/99]

“skills development levies” means a levy as defined in section 1 of the Skills Development
Levies Act;
[Definition of “skills development levies ” substituted by s. 23 of Act 9/99]

“skills development provider” means a provider of an occupational learning; and
[Definition of “skills development provid er” inserted by s. 1 of Act 37/2008]

“South African Qualifications Authority” means the South African Qualification Authority
established by
section 3 of the South African Qualifications Authority Act;

“South African Qualifications Authority Act” means the South Africa Qualifications
Authority Act, 1995 (Act No. 58 of 1995);

“this Act” includes any regulations but does not include the footnotes; and

“trade” means an occupation for which an artisan qualification is re quired in terms of section
26B ;
[Definition of “trade” inserted by s. 1 of Act 37/2008]

“worker” includes an employee, an unemployed person and a work-seeker.

2. Purposes of Act

(1) The purposes of this Act are –

(a) to develop the skills of the South African workforce –

(i) to improve the quality of life of workers, their prospects of work and labour
mobility;

(ii) to improve productivity in the workplace and the competitiveness of employers;

(iii) to promote self-employment; and

(iv) to improve the delivery of social services;

(b) to increase the levels of investment in education and training in the labour market
and to improve the return on that investment;

(c) to encourage employers –

(i) to use the workplace as an active learning environment;

(ii) to provide employees w ith the opportunities to acquire new skills;

(iii) to provide opportunities for new en trants to the labour market to gain work
experience; and

(iv) to employ persons w ho find it difficult to be employed;

(d) to encourage workers to participate in learning programmes;
[Para. (d) substituted by s. 2 of Act 37/2008]

(e) to improve the employment prosp ects of persons previously disadvantaged by
unfair discrimination and to redress t hose disadvantages through training and
education;

(f) to ensure the quality of learning in and for the workplace;
[Para. (f) substituted by s. 2 of Act 37/2008]

(g) to assist –

(i) work-seekers to find work;

(ii) retrenched worker s to re-enter the labour market;

(iii) employers to find qualified employees; and

(h) to provide and regulate employment services.

(2) Those purposes are to be achieved through-

(a) an institutional and financial framework comprising-

(i) the National Skills Authority;

(ii) the National Skills Fund;

(iii) a skills development levy-financing scheme as contemplated in the Skills
Development Levies Act;

(iv) SETAs;

(v) provincial offices of the Department;

(vi) labour centres of the Department;

(vii) accredited trade test centres;

(viii) skills development institutes;

(ix) the Quality Counc il for Trades and Occupations;

(x) a skills development forum for each province;

(xi) a national artisan moderation body; and

(xii) Productivity South Africa;

(b) encouraging partnerships between the public and private sectors of the economy
to provide learning in and for the workplace; and

(c) co-operating with the Sout h African Qualifications Authority.
[Subs. (2) amended by s. 23 of Act 9/99 and substituted by s. 2 of Act 37/2008]

3. Interpretation

Any person applying this Act must interpret its provisions to give effect to –

(a) its purposes; and

(b) the objects of the South African Qualifications Authority Act.

CHAPTER 2

NATIONAL SKILLS AUTHORITY

4. Establishment of National Skills Authority

The National Skills Authority is hereby established.

5. Functions of National Skills Authority

(1) The functions of the National Skills Authority are-

(a) to advise the Minister on-

(i) a national skills development policy;

(ii) a national skills development strategy;

(iii) guidelines on the implementation of the na tional skills development
strategy;

(iv) the strategic framework and cr iteria for allocation of funds from the
National Skills Fund; and

(v) any regulations to be made;

(b) to liaise with SETAs on-

(i) the national sk ills development policy;

(ii) the national skills development strategy; and

(iii) sector skills plans;

(c) to report to the Minister on th e progress made in the implementation of the
national skills development strategy;

(d) to conduct investigations on any matter arising out of the application of this Act;

(dA) to liaise with the QCTO on occupational standards and qualifications; and

(e) to exercise any other powers and pe rform any other duties conferred or imposed
on the Authority by this Act.
[Subs. (1) amended by s. 2 of Act 31/2003 and substituted by s. 3 of Act 37/2008]

(2) For the purposes of investigations refe rred to in subsection (1)(d), the Authority has the
prescribed powers of entry and to question and inspect.

(3) The Authority must perform its f unctions in accordance with this Act and its
constitution.

(4) Subsection (1)(a)(iv) doe s not apply to regulations in respect of which the Minister is
required to consult with the QCTO or Productivity South Africa.
[Subs. (4) added by s. 3 of Act 37/2008]

6. Composition of National Skills Authority and term and vacation of office

(1) The National Skills Authority consists of –

(a) a voting chairperson appointed by the Minister;

(b) 24 voting and six non-voting me mbers appointed by the Minister; and
[Para. (b) substituted by s. 3 of Act 31/2003 and s. 4 of Act 37/2008]

(c) its non-voting executive officer appointed in terms of section 8 (2)(a).

(2) The members referred to in subsection (1)(b) are –

(a) five voting members nominated by NEDLAC and appointed by the Minister to represent organised labour;

(b) five voting members nominated by NEDLAC and appointed by the Minister to
represent organised business;

(c) five voting members nominated by NEDLAC and appointed by the Minister to represent organisations of community a nd development interests, which must
include –

(i) a woman who repres ents the interests of women;

(ii) a person who represen ts the interests of the youth; and

(iii) a disabled person who represents the interests of people with disabilities;

(d) five voting members appointed by the Minister to represent the interests of the
State;

(e) four voting members appointed by th e Minister to represent the interests of
education and skills development providers;
[Para. (e) substituted by s. 4 of Act 37/2008]

(eA) two non-voting members, who have expertise in skills development, appointed by the Minister after consultation with the National Skills Authority;
[Para. (eA) inserted by s. 3 of Act 31/2003]

(f) two non-voting members, who have expertise in the provision of employment
services, appointed by the Minister;
[Para. (f) substituted by s. 4 of Act 37/2008]

(g) a non-voting member nominated by th e South African Qualifications Authority
and appointed by the Minister;
[Para. (g) substituted by s. 4 of Act 37/2008]

(h) a non-voting member nominated by the QCTO and appointed by the Minister.

[Para. (h) added by s. 4 of Act 37/2008]

(3) The Minister must designate five members as deputy chairpersons, one deputy
chairperson each from the members to be appointed to represent –

(a) organised labour;

(b) organised business;

(c) organisations of comm unity and development interests;

(d) the interests of the State; and

(e) education and skills development providers.
[Subs. (3) substituted by s. 4 of Act 37/2008]

(4) A member of the Authority holds office fo r a period of five years and is eligible for re-
appointment on expiry of his or her term of office, but may not serve more than two
consecutive terms of office.
[Subs. (4) substituted by s. 4 of Act 37/2008]

(5) A member of the Authority vacates office if that member –

(a) is removed from office by the Minist er as contemplated in subsection (6); or

(b) resigns by written no tice addressed to the Minister.

(6) The Minister may remove a member of the Authority –

(a) on the written request of the body that nominated that member in terms of
subsection (2);

(b) for serious misconduct;

(c) for permanent incapacity;

(d) for absence from three cons ecutive meetings of the Authority –

(i) without the prior permission of the Authority; or

(ii) unless the member shows good cause; or

(e) for engaging in any activity that may undermine the functions of the Authority.

(7) If the chairperson or a member of the Authority vacates office before the expiry of the
period of office, the Minister must, in terms of subsection (1)(a) or (2), respectively,
appoint a new chairperson or member, as th e case may be, for the unexpired portion of
that period within 90 days.
[Subs. (7) substituted by s. 4 of Act 37/2008]

7. Constitution of National Skills Authority

(1) The National Skills Authority must, as soon as possible after the appointment of its
members, adopt its constitution.

(2) Subject to this Act, the constitution of the Authority –

(a) must provide for –

(i) procedures for the nominations of members of the Authority referred to in
section 6 (2)(a), (b), (c) and (g);

(ii) the establishment and functioning of committees, including an executive
committee;

(iii) subject to subsection (3), the rules for convening and conducting of meetings of the Authority and its committees, including the quorum
required for and the minutes to be kept of those meetings;

(iv) the voting rights of the di fferent members and the manner in which
decisions are to be taken by th e Authority and its committees;

(v) a code of conduct for the members of the Authority;

(vi) the determination through arbitration of any dispute concerning the
interpretation or application of the constitution; and

(vii) subject to subsections (4) and (5), a procedure for amending the
constitution and advising the Minist er on regulations to be made; and

(b) may provide for –

(i) the delegation of powers and duties of the Authority to its members,
committees and employees, provided that the Authority may impose
conditions for the delegation, may not be divested of any power or duty by
virtue of the delegation and may vary or set aside any decision made under
any delegation; and

(ii) any other matter necessary for the performance of the functions of the Authority.

(3) At least 30 days notice must be give n for a meeting of the Authority at which an
amendment of the constitution or a regulation to be made is to be considered.

(4) A supporting vote of at least two thirds of the Author ity’s members and the approval of
the Minister is required for an amendment to its constitution.

(5) A supporting vote of at least two-thirds of the Authority’s members is required for
advising the Minister on regulations to be made.

(6) Despite subsection (2)(a)(i), the Mi nister must determine the procedure for the
nominations for the first appointment of me mbers of the Authority referred to in
section
6(2)(a), (b), (c) and (g).

8. Remuneration and administration of National Skills Authority

(1) A member of the National Skills Aut hority who is not in the full-time employment of
the State may be paid the remuneration and a llowances determined by the Minister with
the approval of the Mi nister of Finance.

(2) Subject to the laws governing the public service, the Director-General must –

(a) appoint a person to be the executive officer of the National Skills Authority who
will, upon such appointment, be in th e employ of the public service; and

(b) provide the Authority with the personnel and financia l resources that the Minister
considers necessary for the pe rformance of its functions.

CHAPTER 3

SECTOR EDUCATION AND TRAINING AUTHORITIES

9. Establishment of SETA

(1) The Minister may, in the prescribed manner, establish a sector education and training
authority with a constitution for any national economic sector.

(2) The Minister must determine a discre te sector for the purposes of subsection (1) by
reference to categories of employers and for th e purposes of that determination take into
account –

(a) the education and training needs of employers and employees that –

(i) use similar material s, processes and technologies;

(ii) make similar products; or

(iii) render similar services;

(b) the potential of the proposed sector for coherent occupational
structures and
career pathing;

(c) the scope of any national strate gies for economic growth and development;

(d) the organisational structures of the trade unions, employer organisations and
government in closely related sectors;

(e) any consensus that there may be between organised labour, organised employers
and relevant government departments as to the definition of any sector; and

(f) the financial and organisational abi lity of the proposed sector to support a SETA.

(3) On the establishment of a SETA, the Minister may provide assistance to the SETA to
enable it to perform its functions.

(4) The Minister may, after consulting th e National Skills Authority and the SETAs in
question and subject to subsect ion (2), change the sector of a SETA and must publish a
notice in the Gazette reflecting such change.
[Subs. (4) added by s. 4 of Act 31/2003] (Commencement date of s. 9: 10 September 1999)

9A. Amalgamation and dissolution of SETAs

(1) The Minister may, after consulting th e National Skills Authority and the SETAs in
question and subject to
section 9 (2), amalgamate two or more SETAs.

(2) The Minister must approve a constitution for the amalgamated SETA.

(3) The Minister must publish a notice in the Gazette containing-

(a) the date of the amalgamation;

(b) the sector for which the am algamated SETA is established; and

(c) any other matter necessary to prescribe in order to esta blish the amalgamation.

(4) On the establishment of the amalgamated SETA, all assets, rights, liabilities and
obligations of the amalgamating SETAs de volve upon and vest in the amalgamated
SETA.

(5) The Minister may, after consulting th e National Skills Authority and the SETA in
question, dissolve a SETA if the SETA is una ble to continue to perform its functions.

(6) The Minister must publish a notice in the Gazette-

(a) containing the date of the dissolution of the SETA;

(b) setting out the manner in which, and by whom, the SETA is to be wound-up;

(c) setting out how any assets remaining after the winding-up of the SETA must be
distributed; and

(d) providing for any other matter nece ssary for the dissolution and winding-up of the
SETA in question.

(7) No transfer duty, stamp duty, fee or cost s are payable in respect of the transfer of any
assets, rights, liabilities or obligations betw een SETAs as contemplated in this section.

(8) The Registrar of Deeds on presentation of proof of any transfer of immovable property
contemplated in this section must endorse the title deeds accordingly and make the
entries in the relevant register that are necessary to register the transfer.
[S. 9A inserted by s. 5 of Act 31/2003]

10. Functions of SETA

(1) A SETA must, in accordance with any requirements that may be prescribed-

(a) develop a sector skills plan within the framework of the national skills
development strategy;

(b) implement its sector skills plan by-

(i) establishing learning programmes;

(ii) approving workplace ski lls plans and annual training reports;

(iii) allocating grants in the prescribed manner and in accordance with any
prescribed standards and criteria to employers, education and skills
development providers and workers; and

(iv) monitoring education and skil ls development provision in the sector;

(c) promote learning programmes by-

(i) identifying workplaces for practical work experience;

(ii) supporting the development of learning materials;

(iii) improving the facilitation of learning; and

(iv) assisting in the conclusion of agreements for learning programmes, to the
extent that it is required;

(d) register agreements for learning programmes, to the extent that it is required;

(e) perform any functions delegated to it by the QCTO in terms of section 26I ;

(f) when required to do so as contemplated in section 7 (1) of the Skills Development
Levies Act, collect the skills development levies, and must disburse the levies,
allocated to it in terms of
sections 8 (3)(b) and 9(b), in its sector;

(g) liaise with the National Skills Authority on-

(i) the national skills development policy;

(ii) the national ski lls development strategy; and

(iii) its sector skills plan;

(h) submit to the Director-General-

(i) any budgets, reports and financia l statements on its income and expenditure
that it is required to prepare in te rms of the Public Finance Management
Act; and

(ii) strategic plans and reports on the implementation of its service level
agreement;

(i) liaise with the provincial offices and labour centres of the Department and any
education body established under any law regulating edu cation in the Republic to
improve information-

(i) about placement opportunities; and

(ii) between education and skills development providers and the labour market;

(iA) liaise with the skills development forums establis hed in each province in such
manner and on such issues as may be prescribed;

(j) subject to section 14 , appoint staff necessary for th e performance of its functions;

(jA) promote the national standard established in terms of section 30B;

(jB) liaise with the QCTO rega rding occupational qualifications; and

(k) perform any other duties imposed by this Act or the Skills Development Levies
Act or consistent with the purposes of this Act.
[Subs. (1) amended by s. 23 of Act 9/99 and s. 6 of Act 31/2003 and substituted by s. 5 of Act 37/2008]

(2) A SETA has –

(a) all such powers as ar e necessary to enable it to pe rform its duties referred to in
subsection (1); and

(b) the other powers conferred on the S ETA by this Act or the Skills Development
Levies Act.
[Para. (b) substituted by s. 23 of Act 9/99]

(3) A SETA must perform its functions in accordance with this Act, the Skills Development Levies Act and its constitution.
[Subs. (3) substituted by s. 23 of Act 9/99] (Commencement date of s. 10: 10 September 1999)

10A. SETAs to conclude service level agreements

(1) For each financial year, every SETA must conclude with the Director-General a service
level agreement concerning-

(a) the SETA’s performance of its func tions in terms of this Act and the national
skills development strategy;

(b) the SETA’s annual business plan; and

(c) any assistance that th e Director-General is to provi de to the SETA in order to
enable it to perform its functions.

(2) If the Director-Gener al and a SETA cannot agree on th e contents of a service level
agreement within the prescribed period, the Mi nister must determine the contents of the
service level agreement after consulting the National Skills Authority.

(3) The determination by the Minister in respect of a service level agreement is final and binding.

(4) The Minister must, after consultation with the National Skills Authority, make regulations concerning-

(a) the procedure for negotiating a service level agreement, including the periods
within which negotiations must be conducted;

(b) the matters which may be dealt with in a service level agreement and which may
include-

(i) standards, crite ria and targets for measuri ng and evaluating the SETA’s
performance of its functions in terms of the Act and its obligations in terms
of the national skills development strategy; and

(ii) the timetable, number, format, contents and information requirements of plans and reports to be submitted to the Director-General.
[S. 10A inserted by s. 7 of Act 31/2003]

11. Composition of SETA

A SETA may consist only of members representing –

(a) organised labour;

(b) organised employers, including small business;

(c) relevant government departments; and

(d) if the Minister, after consultation with the members referred to in paragraph (a), (b) and
(c), considers it appropr iate for the sector –

(i) any interested professional body;

(ii) any bargaining council with jurisdiction in the sector.
(Commencement date of s. 11: 10 September 1999)

12. Chambers of SETA

(1) A SETA may, with the Minister’s approval, establish in its sector chambers.

(2) A chamber so established must cons ist of an equal number of members representing
employees and employers and may include such additional members as the SETA
determines.

(3) That chamber must perform those functions of the SETA as delegated to it in terms of
the constitution of the SETA.

(4) A chamber of a SETA is entitled to such percentage of the skills development levies collected in its jurisdiction as the Minister after consultation with the SETA determines.
(Commencement date of s. 12: 10 September 1999)

13. Constitution of SETA

(1) For the purpose of the establishment of a SETA, th e Minister must approve the
constitution of the SETA.

(2) The Minister may, after consultation with the SETA, amend its constitution in the
prescribed manner.

(3) Subject to this Act, the constitution of a SETA –

(a) must specify –

(i) the trade unions, employer organisations and relevant government
departments in the sector;

(ii) the circumstances and manner in which a member of SETA may be replaced;

(iii) the number of members to be appointed to the S ETA, provided that the
SETA must consist of an equal numbe r of members representing employees
and employers;

(iv) the procedure for the repl acement of a member of the SETA by the
organisation that nominated that member;

(v) the circumstances and manner in which a member may be replaced by the
SETA;

(vi) the election of office-bearers by the members of the SETA and of persons
to act during their absence or incapaci ty, their term of office and functions
and the circumstances and manner in which they may be replaced;

(vii) the establishment and functioni ng of committees, including an executive
committee;

(viii) the rules for convening and co nducting of meetings of the SETA and its
chambers and committees, including the quorum required for and the
minutes to be kept of those meetings;

(ix) the voting rights of the di fferent members and the manner in which
decisions are to be taken by the SETA and its chambers and committees;

(x) a code of conduct for members of the SETA and its chambers;

(xi) the appointment of an execu tive officer, and such other employees
necessary for the effective performance of the functions of the SETA, by its
members, including the determination of their terms and conditions of
employment; and

(xii) the determination through arb itration of any dispute concerning the
interpretation or application of the constitution; and

(b) may provide for –

(i) the delegation of powers and dutie s of the SETA to its members, chambers,
committees and employees, provided that the SETA may impose conditions
for the delegation, may not be divested of any power or duty by virtue of the
delegation and may vary or set as ide any decision made under any
delegation; and

(ii) any other matter necessary for the performance of the functions of the SETA.

(4) In order to ensure that its membersh ip is representative of designated groups, every
SETA must-

(a) provide in its constitution th at each constituency contemplated in section 11
represented on the SETA in question is represented by members who are
sufficiently representative of such designated groups; and

(b) take the necessary steps to ensure that the constituencies in question comply with
the provision in the SETA’s constitu tion contemplated in paragraph (a).
[Subs. (4) added by s. 8 of Act 31/2003] (Commencement date of s. 13: 10 September 1999)

14. Finances of SETA

(1) A SETA is financed from –

(a) 80 per cent of the skills development levies, interest and penalties collected in respect of the SETA, as allocated in terms of
sections 8 (3)(b) and 9(b) of the
Skills Development Levies Act;
[Para. (a) substituted by s. 23 of Act 9/99]

(b) moneys paid to it from the National Skills Fund;

(c) grants, donations and bequests made to it;

(d) income earned on surplus moneys deposited or invested;

(e) income earned on services re ndered in the prescribed manner; and

(f) money received from any other source.

(2) The money received by a SETA must be paid into a banking account at any registered
bank and may be invested only in –

(a) savings accounts, permanent shares or fixed deposits in any registered bank or
other financial institution;

(b) internal registered stock contemplated in secti on 21(1) of the Exchequer Act,
1975 (Act No. 66 of 1975);

(c) ……….
[Para. (c) deleted by s. 23 of Act 9/99]

(d) any other manner approved by the Minister.

(3) The moneys received by a SETA may be used only in the prescribed manner and in
accordance with any prescribed standards or criteria to-

(a) fund the performance of its functions; and

(b) pay for its administration within the prescribed limit.
[Subs. (3) amended by s. 9 of Act 31/2003]

(3A) For the purposes of subsection (3)(b), the Minister-

(a) must prescribe the total expenditure that a SETA may make on its administration;
and

(b) may prescribe-

(i) the amount that a SETA may sp end on any aspect of its administration;

(ii) salary bands within which categories of employees must be remunerated;

(iii) the conditions under which employees may receive performance-related
payments and the maximum payment that may be made to an employee in
this regard;

(iv) the allowances that may be pa id to members and office-bearers of SETAs
or any other persons who serve on a committee or other structure of a
SETA.
[Subs. (3A) inserted by s. 9 of Act 31/2003]

(3B) For the purposes of subsections (3) a nd (3A), the administration of a SETA includes
any aspect of the administration or mana gement of a SETA, irrespective of who
performs it.
[Subs. (3B) inserted by s. 9 of Act 31/2003]

(4) A SETA must be managed in accordan ce with the Public Finance Management Act.
[Subs. (4) substituted by s. 9 of Act 31/2003]

(5) Every SETA must-

(a) prepare annual budgets, annual reports and financial statements in accordance
with
Chapter 6 of the Public Finance Management Act; and

(b) furnish the Director-General with copies of all budgets, reports and statements
contemplated in paragraph (a) and any ot her information that it is required to
submit in terms of the Public Finance Management Act.
[Subs. (5) substituted by s. 9 of Act 31/2003]

(6) The Auditor-General must –

(a) audit the accounts, fi nancial statements and financial management of a SETA; and

(b) report on that audit to the SETA and to the Minister and in that report express an
opinion as to whether the SETA has complie d with the provisions of this Act, and
its constitution, relating to financial matters.
(Commencement date of s. 14: 10 September 1999)

14A. Minister may issue written instructions to SETAs

(1) The Minister may issue a written instruction to a SETA if-

(a) the SETA is not performing any of its functions or not complying with its service
level agreement;

(b) the SETA is not managing its finances in accordance with this Act;

(c) the SETA’s membership is not repr esentative of the constituencies contemplated
in
section 11 ; or

(d) the SETA has not prepared and implemented an employment equity plan as contemplated in
section 20 of the Employment Equity Act, 1998 (Act No. 55 of
1998).

(2) An instruction issued under subsection (1) must set out-

(a) the reason for issuing the instruction;

(b) any provision of the Act that the SETA has not complied with; and

(c) the steps that the SETA is required to take and the period within which such steps
must be taken.

(3) At the request of a SETA, the Minister may-

(a) extend the period for co mplying with an instruction; or

(b) revise the terms of the instruction.

(4) If a SETA has not complied with an instru ction issued in terms of this section within the
specified period, the Minister may-

(a) direct the Director-General to withhold all or part of the allocation to the SETA in
terms of
section 8 (3)(b) of the Skills Development Levies Act for such period and
on such conditions as the Director-General may determine;

(b) invoke section 15 without further notice to the SETA;

(c) order an investigation into the ma nagement and administration of the SETA; or

(d) take any other steps necessary to en sure that the SETA performs its functions or
manages its finances in accordance with this Act.

(5) If a SETA has unreasonably failed to institute disciplinary proceedings for misconduct
against any employee of the SETA, the Mini ster may direct the SETA to institute
disciplinary proceedings against that employee.
[S. 14A inserted by s. 10 of Act 31/2003]

15. Taking over administration of SETA

(1) The Minister may, after consultation with the National Skills Authority and the SETA in question, direct the Direct or-General to appoint an administrator to take over the
administration of a SETA or to perf orm the functions of a SETA if –

(a) the SETA fails to perform its functions;

(b) there is mismanagement of its finances;

(c) its membership no longer substantially represents the composition contemplated
in
section 11 ;

(d) the SETA has failed to comply with its service level agreement; or

(e) the SETA has failed to comply with an instruction issued by the Minister in terms
of
section 14A .
[Subs. (1) substituted by s. 11 of Act 31/2003]

(2) The Director-General must publish a notice in the Gazette appointing an administrator
and in that notice the Director-General –

(a) must determine the powers and duties of the administrator, which may include the
performance by the administrator of the SETA’s functions in terms of the Public
Finance Management Act;

(b) may suspend or replace one or more members of the SETA for a reason contemplated in subsection (1)(a) to (e);

(c) may suspend the operation of the constitution of the SETA; and

(d) may direct the transf er of all or some of the funds in the SETA’s bank account to
the National Skills Fund.
[Subs. (2) substituted by s. 11 of Act 31/2003]

(3) If a notice is published in terms of subs ection (1), the Minister may, to ensure that the
SETA resumes the performance of its functions –

(a) amend its constitution;

(b) reinstate any of its members; and

(c) withdraw or amend any provision of the notice contemplated in subsection (2) on
such conditions as the Minister considers appropriate.

(4) The Minister may act in terms of subsection (1) without consulting the National Skills
Authority and the SETA in question if ther e is financial mismanagement of the SETA
and the delay caused by the c onsultation would be detrimen tal to the SETA’s capacity
to perform its functions.
[Subs. (4) added by s. 11 of Act 31/2003] (Commencement date of s. 15: 10 September 1999)

CHAPTER 4

LEARNERSHIPS

16. Learnerships

A SETA may establish a learnership if-

(a) the learnership includes a structured learning component;

(b) the learnership includes a structured work experience component;

(c) the learnership would lead to a qualification registered by the South African
Qualifications Authority associated with a trade, occupation or profession; and

(d) the intended learnership is registered with the Director-General in the prescribed
manner.
[S. 16 substituted by s. 6 of Act 37/2008] (Commencement date of s. 16: 1 April 2001)

17. Learnership agreements

(1) For the purposes of this Chapter, a ‘l earnership agreement’ means an agreement entered
into for a specified period between-

(a) a learner;

(b) an employer or a group of employe rs (in this section referred to as ‘the
employer’); and

(c) a skills development provider accredited by the QCTO or group of such skills
development providers;
[Subs. (1) substituted by s. 7 of Act 37/2008]

(2) The terms of a lear nership agreement must oblige –

(a) the employer to –

(i) employ the learner for th e period specified in the agreement;

(ii) provide the learner with th e specified practical work experience; and

(iii) release the learner to attend the education and training specified in the
agreement;

(b) the learner to –

(i) work for the employer; and

(ii) attend the specified education and training; and

(c) the skills development provider to provide –

(i) the education and trai ning specified in the agreement; and

(ii) the learner support specified in the agreement.
[Para. (c) amended by s. 7 of Act 37/2008]

(3) A learnership agreement must be in the prescribed form and registered with a SETA in
the prescribed manner.

(4) A learnership agreemen t may not be terminated before the expiry of the period of
duration specified in the agreement unless –

(a) the learner meets the requireme nts for the successful completion of the
learnership;

(b) the SETA which registered the agreement approves of such termination; or

(c) the learner is fairly dismissed for a reason related to the learner’s conduct or
capacity as an employee.

(5) The employer or skills development provider that is party to a learnership agreement may be substituted with –

(a) the consent of the learner; and

(b) the approval of the SETA which registered the agreement.
[Subs. (5) amended by s. 7 of Act 37/2008]

(6) A SETA must, in the prescribed manner, provide the Dir ector-General with a record of
learnership agreements registered by the SETA.

(7) The Minister may make regulations –

(a) permitting an employer to enter into an agreement with an agency to perform the employer’s obligations and exercise th e employer’s rights in respect of a
learnership agreement or, in respec t of a learner contemplated in
section 18 (2), a
contract of employment;
[Para. (a) amended by s. 7 of Act 37/2008]

(b) prescribing the relationship between the employer and the agency contemplated in
paragraph (a).

(c) prescribing the requirements for regi stering an agency contemplated in paragraph
(a); and
[Para. (c) added by s. 7 of Act 37/2008 ]

(d) making it an offence to operate an ag ency contemplated in paragraph (a) except in
accordance with such regulations.
[Para. (d) added by s. 7 of Act 37/2008] [Subs. (7) added by s. 12 of Act 31/2003] (Commencement date of s. 17: 1 April 2001)

18. Contract of employment with learner

(1) If a learner was in the employment of the employer party to the learnership agreement
concerned when the agreement was concluded, the learner’s contract of employment is
not affected by the agreement.

(2) If the learner was not in the employment of the em ployer party to the learnership
agreement concerned when the agreement was concluded, the employer and learner
must enter into a contract of employment.

(3) The contract of employment with a lear ner contemplated in subsection (2) is subject to
any terms and conditions that may be determined by the Minister on the
recommendation of the Employment Conditions Commission established by
section
59 (1) of the Basic Conditions of Employment Act.

(4) Chapters Eight and Nine1 of the Basi c Conditions of Employment Act apply, with the
changes required by the context, to a dete rmination made in terms of subsection (3)
except that –

(a) for the purposes of section 54 (3) of that Act, the Employment Conditions
Commission must also consid er the likely impact that any proposed condition of
employment may have on the employment of learners and the achievement of the
purposes of this Act; and

(b) section 55 (7) of that Act does not apply.

______________
1 Chapters Eight and Nine of the Basic Conditions of Employment Act (“BCEA”), provide for the publication of
sector determinations by the Minister on basic conditions of employment on the advice of the Employment Conditions
Commission. Before the Commission advises the Minister on the publication of a determination:
(a) the Department of Labour conducts an investigation and prepares a report;
(b) the Commission then considers the report in the light of a number of factors set out in section 54 (3) of the BCEA
and in this process may hold public hearings, and then
(c) gives its advice in a report to the Minister. The eff ect of this section is to allow for the setting of terms and
conditions of employment for learners in a similar way to the setting of conditions of apprenticeship under the
Manpower Training Act, 1981 (Act No. 56 of 1981), in so far as conditions of employment are concerned – see section

13(2)(c) and (k) to (p). The provisions of the BCEA are sufficiently flexible to allow for sector and cross-sector
determinations for learnerships.

(5) The contract of employment of a learne r may not be terminated before the expiry of the
period of duration specified in the learnership agreement unless the learnership
agreement is terminated in terms of
section 17 (4).

(6) The contract of employment of a lear ner terminates at the expiry of the period of
duration specified in the learnership agr eement unless the agreement was concluded
with a person who was already in the em ployment of the employer party to the
agreement when the agreement was concluded.
(Commencement date of s. 18: 1 April 2001)

19. Disputes about learnerships

(1) For the purposes of this sec tion a “dispute” means a dispute about –

(a) the interpretation or application of any provision of –

(i) a learnership agreement;

(ii) a contract of employ ment of a learner contemplated in section 18 (2); or
[Subpara. (ii) substituted by s. 13 of Act 31/2003]

(iii) a determination made in terms of section 18 (3);

(b) this Chapter; or

(c) the termination of –

(i) a learnership agreement; or

(ii) a contract of employment of a learner contemplated in section 18 (2).
[Subpara. (ii) substituted by s. 13 of Act 31/2003]

(2) Any party to a dispute may in writing refer the dispute to the Commission for
Conciliation, Mediation and Arbitration established by
section 112 of the Labour
Relations Act, 1995 (Act No. 66 of 1995).

(3) The party who so refers the dispute must satisfy that Commission that a copy of the
referral has been served on all th e other parties to the dispute.

(4) The Commission must attempt to resolve the dispute through conciliation.

(5) If the dispute remains unresolved, any party may request that the dispute be resolved
through arbitration as soon as possible.

(6) The law that applies to the lawfulness 2 and fairness 3 of a dismissal for a reason related
to an employee’s capacity or conduct applie s to a dispute contemplated in subsection
(1)(c)(ii).

(7) Notwithstanding section 210 of the Labour Relations Act, 1995 (Act No. 66 of 1995),
this section must be regarded as expressly amending any contrary provision in that Act.
[Subs. (7) added by s. 13 of Act 31/2003] (Commencement date of s. 19: 1 April 2001)
__________
2 The lawfulness of a dismissal is governed by the provisions of this Act, the Basic Conditions of Employment Act
and the common law.
3 The fairness of a dismissal is governed by the Labour Relations Act, 1995 (Act No. 66 of 1995), the Public Service
Act, 1994 (Proclamation No. 103 of 1994), and the common law (administrative law in respect of public sector
employees).

CHAPTER 5

SKILLS PROGRAMMES

20. Skills programmes

(1) For the purposes of this Chapter, a “skills programme” means a skills programme that –

(a) is occupationally based;

(b) when completed, will constitute a credit towards a qualification registered in
terms of the National Qualifica tions Framework as defined in
section 1 of the
South African Qualifications Authority Act;

(c) uses training providers referred to in section 17 (1)(c); and
[Para. (c) substituted by s. 14 of Act 31/2003]

(d) complies with any requi rements that may be prescribed.
[Para. (d) substituted by s. 14 of Act 31/2003]

(2) Any person that has developed a skills programme may apply to –

(a) a SETA with jurisdiction for a grant; or

(b) the Director-General for a subsidy.

(3) The SETA or the Director-Gen eral may fund the skills programme if –

(a) it complies with –

(i) subsection (1);

(ii) any requirements imposed by the SETA or the Director-General; and

(iii) any prescribed requirements; and

(b) it is in accordance with –

(i) the sector skills development plan of the SETA; or

(ii) the national skills development strategy; and

(c) there are funds available.

(4) A SETA or the Director-General may set any terms and conditions for funding in terms
of subsection (3) that the SETA or the Dire ctor-General, as the case may be, considers
necessary.

(5) The SETA or the Director-General must monitor the skills programmes funded by the
SETA or the Director-General, as the case may be.

(6) A SETA or the Director-General that has made funds available for a skills programme
may withhold funds or recover any funds paid if the SETA or the Director-General, as
the case may be, is of the opinion that –

(a) the funds are not being used for the purpose for which they were made available;

(b) any term or condition of the funding is not complied with; or

(c) the SETA or the Director-General, as the case may be, is not satisfied that the
training is up to standard.
(Commencement date of s. 20: 10 September 1999)

21. Disputes

Any party to a dispute about the ap plication or interpretation of –

(a) any term or condition of funding referred to in section 20 (4); or

(b) any provision of this Chapter,

may refer the dispute to the Labour Court for adjudication.
(Commencement date of s. 21: 10 September 1999)

CHAPTER 6

INSTITUTIONS IN DEPARTMENT OF LABOUR AND EMPLOYMENT SERVICES
[Heading substituted by s. 15 of Act 31/2003 and s. 8 of Act 37/2008]

22. Administration of Act by Department

(1) Subject to the laws governing the public service, the Director-General must ensure that
the Department, including its provincial offices and labour centres, has the personnel
and financial resources necessary for the perf ormance of its functions in terms of this
Act.

(2) The functions of the Depa rtment in terms of this Act are-

(a) to research and analyse the labour market in order to determine skills development
needs for-

(i) South Africa as a whole;

(ii) each sector of the economy; and

(iii) organs of state;

(b) to assist in the formulation of-

(i) the national skills development strategy; and

(ii) sector skills development plans; and

(c) to provide information on skills to-

(i) the Minister;

(ii) the National Skills Authority;

(iii) SETAs;

(iv) education and skills development providers;

(v) organs of the state;

(vi) the skills development forums in each province;

(vii) the QCTO; and

(viii) any other interested party; and

(d) to perform any other function assigned or delegated to the Department in terms of
this Act.
[S. 22 substituted by s. 9 of Act 37/2008] (Commencement date of s. 22: 10 September 1999)

23. Employment services

(1) The functions of provincial offices of th e Department in respect of employment services
are-

(a) to plan, coordinate, support, monitor and report on all activities occurring at all
labour centres;

(b) to establish a skills development forum as prescribed;

(c) to maintain a data-base of skills development providers within their jurisdiction;
and

(d) to perform any other prescribed or delegated function.
[Subs. (1) substituted by s. 10 of Act 37/2008]

(2) The functions of th e labour centres of the Departme nt in respect of employment
services are-

(a) to provide information to workers, employers and skills development providers,
including the unemployed;

(b) to register work-seekers;

(c) to register placement opportunities;

(d) to assist workers and other prescribed categories of persons-

(i) to enter learning programmes;

(ii) to find placement opportunities;

(iii) to start income-generating projects; and

(iv) to participat e in placement programmes;

(e) to develop plans, programmes and cohe rent strategies to extend services to rural
communities; and

(f) to perform any other prescribed f unction related to the functions referred to in
paragraphs (a) to (e).
[Subs. (2) substituted by s. 10 of Act 37/2008]

(3) The Minister may, after consulting th e National Skills Authority, by notice in the
Gazette , require each employer to notify a labour centre in the prescribed manner of –

(a) any vacancy that employer has; and

(b) the employment of any work-s eeker referred by that labour centre.
(Commencement date of s. 23: 10 September 1999)

24. Registration of persons that provide employment services

(1) Any person who wishes to provide employment services for gain must apply for
registration as a private empl oyment services agency to the Director-General in the
prescribed manner.
[Subs. (1) substituted by s. 16 of Act 31/2003]

(2) The Director-General must register the applicant if satisfied that the prescribed criteria
have been met.

(3) If the Director-General –

(a) registers an applicant, the prescribed certificate must be issu ed to that person; or

(b) refuses to register an applicant, the Director-Gener al must give written notice of
that decision to the applicant.

(4) A registered private employment serv ices agency must comply with the prescribed
criteria.
[Subs. (4) substituted by s. 16 of Act 31/2003]

(5) The Director-General may withdraw the registration of any private employment
services agency that fails to comply with this Act or any prescr ibed requirements or
criteria.
[Subs. (5) added by s. 16 of Act 31/2003] (Commencement date of s. 24: 10 September 1999)

25. Cancellation of registration of private employment services agency

(1) Subject to this section, the Director -General may cancel the registration of a private
employment services agency if the priv ate employment services agency is not
complying with the prescribed criteria.

(2) If the Director-General has reason to believe that a private employment services agency
is not complying with the prescribed criteria and accordingly that its registration should
be cancelled, the Director-General must , before cancelling its registration-

(a) notify the agency of the intention to cancel registration and the reasons for doing
so;

(b) give the agency 30 days from the date of the notice to make representations on
why its registration should not be cancelled; and

(c) take those representations into account in reaching a decision.

(3) If the Director-General cancels the registration of a private employment services
agency, the Director-General must give wri tten notice of that decision to the private
employment services agency.
[S. 25 substituted by s. 17 of Act 31/2003] (Commencement date of s. 25: 10 September 1999)

26. Appeal against Director-General’s decision

(1) Any person aggrieved by a decision of the Director-Gen eral in terms of section 24 (3)
(b) or
25 (3) may, within 30 days of the written notice of that decision, in writing,
request the Director-General to give that person written reasons for the decision.

(2) The Director-General must give that person written reasons for the decision within 30
days of receiving that request.

(3) Any person aggrieved by a decision of the Director-Gen eral in terms of section 24 (3)
(b) or
25 (3) may appeal to the Labour Court against that decision within 60 days of –

(a) the date of the Director-General’s decision; or

(b) if written reasons for the decisi on are requested, the date of those reasons.

(4) The Labour Court may, on good cause shown, extend the period within which a person
may note that appeal.
(Commencement date of s. 26: 10 September 1999)

CHAPTER 6A

ARTISAN DEVELOPMENT

26A. National artisan moderation body

(1) The Director-General must-

(a) establish a national artisan moderation body in the Department; and

(b) provide the body contemplated in paragraph (a) with the personnel and financial
resources that are necessary to coordina te artisan development in the Republic.

(2) The functions of the national artisan moderation body are to-

(a) monitor the performance of accredited artisan trade lest centres;

(b) moderate artisan trade tests;

(c) develop, maintain and apply a nati onal data-bank of instruments for assessment
and moderation of artisan trade tests;

(d) develop and maintain a national data-base of register ed artisan trade assessors and
moderators;

(e) record artisan achievements;

(f) determine appeals against assessment decisions;

(g) recommend the certificati on of artisans to the QCTO; and

(h) perform any other prescribed function.
[S. 26A inserted by s. 11 of Act 37/2008]

26B. Listing of trades

The Minister may, on application by one or more SETAs in the prescribed form, by notice in
the Gazette –

(a) list any occupation as a trade fo r which an artisan qualification is required;

(b) remove any trade from the list contemplated in subparagraph (a) if an artisan
qualification is no longer required for that trade.
[S. 26B inserted by s. 11 of Act 37/2008]

26C. National register of artisans

(1) The Director-General must maintain a register of persons-

(a) who have obtained an artisan qualific ation in terms of this Act or any repealed
Act; and

(b) who are practicing that trade.

(2)
(a) No person, whether employed or self-employed, may hold themselves out to be qualified as an artisan in a lis ted trade unless that person is registered as an artisan
in terms of subsection (1).

(b) Paragraph (a) does not affect any requirement that any professional or regulatory
body regulating any listed trade may requi re for the practice of that trade.

(3) For the purpose of this section, a person qualified to be an artisan in terms of any
repealed Act includes any person who completed a contract of apprenticeship under a
time-based apprenticeship system in term s of any conditions of apprenticeship
published in terms of any repealed Act.

(4) The Minister may make regulations concerning-

(a) the criteria and procedure for th e name of any person to be included on, or
removed from, the register of artisans;

(b) any other matter necessary for maintaining the register of artisans.
[S. 26C inserted by s. 11 of Act 37/2008]

26D. Trade tests

(1) Subject to any regulation made in te rms of subsection (5), no person may obtain an
artisan qualification in terms of this Act unless they have successfully undergone a trade
test administered by an accredited trade test centre.

(2) A person may apply to undergo a trade test in respect of a trade if-

(a) that person has completed a learnership relevant to that trade; or

(b) that person has satisfied the relevant requirements of an apprenticeship in respect
of that trade; or

(c) an accredited trade test centre has certified that the person has acquired sufficient
prior learning related to that trade; and

(d) that person has completed any other learning programme resulting in an occupational or vocational qualification incl usive of prescribed work experience
that entitles such person to unde rgo the relevant trade test.

(3) An accredited trade test centre may require any person who applies to undergo a trade
test to undergo a preliminary evaluation to de termine whether that person has sufficient
experience and knowledge in resp ect of the trade in question to undergo the trade test.

(4) The QCTO must issue any person who successfully completed a trade test with a trade
certificate in the prescribed form, stating th at that person is qualified to perform the
trade specified in the certificate.

(5) The Minister, after consulting th e QCTO, may make regulations concerning-

(a) the procedure for applying to undergo a trade test;

(b) the criteria for determining whether a learner should be required to undergo a
preliminary trade test evaluation;

(c) the payment of fe es for undergoing a trade test;

(d) the contents of a preliminary evalua tion or trade test in respect of any trade;

(e) any matter related to conduc ting or moderating of trade tests;

(f) the criteria for granting exemptions from all or some of the requirements in
respect of a trade test before be ing registered as an artisan;

(g) the form of certificate issued to artisans who su ccessfully undergo a trade test;

(h) any other matter necessary for th e conducting or moderating of trade tests.
[S. 26D inserted by s. 11 of Act 37/2008]

CHAPTER 6B

SKILLS DEVELOPMENT INSTITUTES

26E. Skills development institutes

(1) The Minister may, by notice in the Gazette, establish skills development institutes in
accordance with the prescribed requirements and may contribute the resources that are
necessary for the effective pe rformance of their functions.

(2) A skills development institute may-

(a) provide advisory services on skills development, mentoring and the recognition of
prior learning;

(b) provide le arning programmes; and

(c) perform any other prescribed functi on necessary to promote skills development.

(3) The Minister may make regulations concerning-

(a) the establishment, functions, operation, legal status, governance and funding of
skills development institutes;

(b) any other matter that it is necessary or expedient to prescribe in order to enable
skills development institutes to perform their functions.

(4) The Minister may make different re gulations under subsection (2) with respect to
different skills development institutes.
[S. 26E inserted by s. 11 of Act 37/2008]

CHAPTER 6C

QUALITY COUNCIL FOR TR ADES AND OCCUPATIONS

26F. Policy on occupational standards and qualifications

(1) The Minister, after consulting the QC TO, may by notice in the Gazette determine policy
on-

(a) an occupational qualif ications sub-framework as an integral part of the National
Qualifications Framework;

(b) the sub-framework for quality assurance for occupational qualifications; and

(c) any other matter concerning occupati onal standards or occupational qualifications.
[S. 26F inserted by s. 11 of Act 37/2008]

26G. Establishment of QCTO

(1) The Quality Council for Trades and O ccupations is hereby established as a juristic
person.

(2) The QCTO must be managed in accordan ce with the Public Finance Management Act.

(3) The QCTO consists of 16 members appointed by the Minister in accordance with
Schedule 3 .

(4) The Minister must approve a constitution for the QCTO which, subject to this Act, complies with the requirements set out in
Schedule 3 .

(5)
(a) The Minister must appoint the chief executive officer of the QCTO on the
recommendation of the members of the QCTO.

(b) If the Minister does not agree with the recomme ndation of the members of the
QCTO, they must make another r ecommendation for consideration by the
Minister.

(c) The QCTO must appoint such number of employees to assist the QCTO in the
performance of its functions as it may deem necessary.

(d) Despite paragraph (a), the QCTO is the employer of the executive officer and
employees and must determine their remuneration, allowances, subsidies and
other conditions of service.

(e) Staff identified in posts on the esta blishment of the Department who immediately
before the commencement of the Higher Education Laws Amendment Act, 2010,
performs functions relating to the administrative management of the QCTO may,
subject to section 197 of the Labour Rela tions Act, 1995 (Act No. 66 of 1995), be
appointed or transferred to the QCTO.
[Subs. (5) substituted by s. 5 of Act 26/2010]

(6) The QCTO is financed from-

(a) money voted by Parliament for this purpose;

(b) income earned from services rendered by it;

(c) grants or donations made to it; and

(d) money received from any other source.
[S. 26G inserted by s. 11 of Act 37/2008]

26H. Functions of QCTO

(1) The QCTO must advise the Minister on all matters of policy concerning occupational
standards and qualifications.

(2) The QCTO must perform its functi ons in terms of this Act and the National
Qualifications Framework Act, 2008.

(3) Subject to any policy i ssued by the Minister in terms of section 26F , the QCTO is
responsible for-

(a) establishing and maintaining occupational standards and qualifications;

(b) the quality assuran ce of occupational standards and qualifications and learning in
and for the workplace;

(c) designing and developing occupa tional standards and qualifications and
submitting them to the South African Qualifications Authority for registration on
the National Qualifications Framework;

(d) ensuring the quality of occupational standards and qualifications and learning in and for the workplace;

(e) promoting the objectives of the National Qualifications Framework;

(f) liaising with the National Skills Authority on the suitability and adequacy of
occupational standards and qualifications a nd on the quality of learning in and for
the workplace;

(g) liaising with the South African Qu alifications Authority, other Quality Councils
and professional bodies responsible for es tablishing standards and qualifications
or the quality assurance of st andards and qualifications; and

(h) performing any other prescribed function.

(4) The QCTO has all such powers as are n ecessary to enable it to perform its functions in
terms of this section.

(5) The Minister may issue written instructions, which are not inconsistent with any policy
made by the Minister in terms of
section 26F , to the QCTO regarding the performance
of its functions in te rms of subsection (3).

(6) The QCTO must comply with-

(a) any policy determined by the Minister in terms of section 26F ; and

(b) any written instruction issued by the Minister in terms of subsection (5).
[S. 26H inserted by s. 11 of Act 37/2008]

26I. Delegation of functions

(1) The QCTO may, in writi ng and subject to such conditions as it may determine, delegate
any of its functions to-

(a) the executive officer of the QCTO;

(b) a committee of the QCTO;

(c) the national artisan mode ration body established in terms of section 26A ;

(d) a SETA; or

(e) any other suitable body.

(2) A delegation under subsection (1)-

(a) does not divest the QCTO of the function delegated and the QCTO may at any
time review, amend or set aside any decision made under the delegation;

(b) does not prevent the performan ce of the function by the QCTO itself; and

(c) may be revoked by the QCTO at any time.
[S. 26I inserted by s. 11 of Act 37/2008]

26J. Regulations regarding occupational standards and qualifications

The Minister may, after consulting the QCTO, by notice in the Gazette make regulations
regarding-

(a) the setting of occupational standard s and qualifications;

(b) the recognition and regist ration of occupational curricula;

(c) the accreditation of occupational skills development providers;

(d) the approval of occupational learning programmes;

(e) the registration of occ upational assessors and moderators;

(f) the certification for occupational standards and qualifications;

(g) the accreditation of occupational assessment centres;

(h) the approval of wor kplaces for occupational training and the monitoring of workplaces
for occupational training;

(i) the provision of o ccupational foundational learning;

(j) the provision of internships;

(k) the appointment of occupational communities of expert practice;

(l) the organising framework for occupations;

(m) the recognition of prior learning in respect of occupational qualifications; and

(n) any other matter concerning occupationa l standards and qualifications or which it is
necessary or expedient to pres cribe in order to enable the QCTO to perform its functions
under this Act.
[S. 26J inserted by s. 11 of Act 37/2008]

CHAPTER 6D

WORKPLACE PRODUCTIVITY AND COMPETITIVENESS

26K. Establishment of Productivity South Africa

(1) Productivity South Africa is hereby established as a juristic person.

(2) Productivity South Africa must be managed in accordance with the Public Finance
Management Act.

(3) The Board of Productivity South Africa consists of seven members appointed by the Minister in accordance with
Schedule 4 .

(4) The Minister must approve a constitu tion for Productivity South Africa which, subject
to this Act. complies with the requirements set out in
Schedule 4 .
[S. 26K inserted by s. 11 of Act 37/2008]

26L. Functions of Productivity South Africa

The functions of Productiv ity South Africa are-

(a) to promote a culture of productivity in workplaces;

(b) to develop relevant productivity competencies;

(c) to facilitate and evaluate productivity improvement and competitiveness in workplaces;

(d) to measure and evaluating productivity in the workplace;

(e) to maintain a data-base of productivity and competitiveness systems and publicising
these systems;

(f) to undertake productivity-related research;

(g) to support initiatives aimed at preventing job losses; and

(h) to perform any other prescribed function.
[S. 26L inserted by s. 11 of Act 37/2008]

26M. Finances of Productivity South Africa

Productivity South Africa is financed from –

(a) money voted by Parliament for this purpose;

(b) income earned from services rendered by it;

(c) grants or donations made to it; and

(d) money received from any other source.
[S. 26M inserted by s. 11 of Act 37/2008]

26N. Regulations regarding workplace productivity and competitiveness

The Minister may, after consulting Produc tivity South Africa, by notice in the Gazette make
regulations regarding any improvements in workplace productivity and competitiveness
which it is necessary or expedien t to prescribe in order to enable Productivity South Africa to
perform its functions under this Act.
[S. 26N inserted by s. 11 of Act 37/2008]

CHAPTER 7

FINANCING SKILLS DEVELOPMENT

27. National Skills Fund

(1) The National Skills Fund is hereby established.

(2) The Fund must be credited with –

(a) 20 per cent of the skills development levies, interest and penalties collected in respect of every SETA, as required by
sections 8 (3)(a) and 9(a) of the Skills
Development Levies Act;
[Para. (a) substituted by s. 23 of Act 9/99] (Commencement date of para. (a): 10 September 1999)

(b) the skills development levies, interest and penalt ies collected by the
Commissioner from employers which do not fall within the jurisdiction of a
SETA, as required by
sections 8 (3)(c) of the Skills Development Levies Act.
[Para. (b) substituted by s. 23 of Act 9/99] (Commencement date of para. (b): 10 September 1999)

(c) money appropriated by Parliament for the Fund;

(d) interest earned on investments contemplated in section 29 (3);

(e) donations to the Fund; and

(f) money received from any other source.

28. Use of money in Fund

(1) The money in the Fund may be used only for the projects identified in the national skills
development strategy as nationa l priorities or for such other projects related to the
achievement of the purposes of this Ac t as the Director-General determines.

(2) The money allocated to the Fund in terms of sections 8 (3)(a) of the Skills Development
Levies Act may be used to administer the Fund within a prescribed limit.
[S. 28 amended by s. 18 of Act 31/2003 and substituted by s. 12 of Act 37/2008]

29. Control and administration of Fund

(1) The Director-General is the accounting authority of the Fund as contemplated by
section 49 (2)(b) of the Public Finance Management Act and must-

(a) control the Fund;

(b) keep a proper record of all financial transactions, assets and liabilities of the Fund;

(c) annual financial statements for the Fund in the prescribed form; and

(d) subject to the laws governing the public service, a ppoint the executive officer of
the Fund who will, upon such appointment, be in the employ of the public service.

(1A) The Fund must be managed in accordance with the Public Finance Management Act.

(2) Any money in the Fund not required for immediate use may be invested in accordance
with an investment policy approved by the Director-General that complies with the
requirements of the Public Finance Mana gement Act and may be withdrawn when
required.

(3) Any unexpended balance in the Fund at th e end of the financial year must be carried
forward to the next financial year as a credit to the Fund.

(4) The annual financial statements contem plated in subsection (1)(c) must be submitted by
the Director-General to the National Skills Au thority for information as soon as possible
after they have been prepared.
[S.29 amended by s. 19 of Act 31/2003 and substituted s. 13 of Act 37/2008]

30. Budget for training by public service employers

Each public service employer in the nationa l and provincial spheres of government –

(a) must budget for at least –

(i) 0,5 per cent of its payroll with effect from 1 April 2000;

(ii) one per cent of its payroll with effect from 1 April 2001,

for the training and educa tion of its employees; and
[Para. (a) substituted by s. 23 of Act 9/99]

(b) may contribute funds to a SETA.
(Commencement date of s. 30: 10 September 1999)

30A. Budget for training by national and provincial public entities

If 80 per cent or more of the expenditure of a national or provincial public entity is defrayed
directly or indirectly from funds voted by Parliament, that entity –

(a) must annually budget at least one per cen t of its payroll for the training and education of
its employees; and

(b) may contribute funds to a SETA.
[S. 30A inserted by s. 23 of Act 9/99 and substituted by s. 20 of Act 31/2003]

30B. National standard of good practice in skills development

(1) In order to achieve the purposes of th is Act, the Minister may, by notice in the Gazette,
establish a national standard of good practice in skills development.

(2) The Minister may take any steps necessary to achieve the national standard
contemplated in subsection (1) and may establis h an agency or contract with an existing
agency.

(3) The Director-General may allocate funds from the National Skills Fund to fund any
activity undertaken in te rms of this section.
[S. 30B inserted by s. 21 of Act 31/2003]

CHAPTER 8

GENERAL

31. Jurisdiction of Labour Court

(1) Subject to the jurisdiction of the Labour Appeal Court and except where this Act
provides otherwise, the Labour Court has exclus ive jurisdiction in respect of all matters
arising from this Act.

(2) The Labour Court may review any act or omission of any person in connection with this
Act on any grounds permissible in law.

(3) If proceedings concer ning any matter contemplated in s ubsection (1) are instituted in a
court that does not have jurisd iction in respect of that matter, that court may at any stage
during proceedings refer the matter to the Labour Court.
(Commencement date of s. 31: 10 September 1999)

32. Monitoring, enforcement and legal proceedings

(1) Chapter Ten, and sections 90 to 93 of and Schedule Two to the Basic Conditions of
Employment Act apply, with change s required by the context, to –

(a) the monitoring and enforcement of this Act; and

(b) any legal proceedings concerning a contravention of this Act.

(2) A labour inspector appointed in terms of section 63 of the Basic Conditions of
Employment Act may issue an order in th e prescribed form requiring any person to
cease conducting the business of a private employment services agency in contravention
of this Act.
[S. 32 substituted by s. 22 of Act 31/2003] (Commencement date of s. 32: 10 September 1999)

33. Offences

It is an offence to –

(a) obstruct or attempt to influence improperly a person who is performing a function in
terms of this Act;

(b) obtain or attempt to obtain any prescr ibed document by means of fraud, false pretences
or by submitting a false or forged prescribed document;

(c) furnish false information in any pres cribed document knowing that information to be
false;

(d) provide employment services for gain without being registered in terms of section 24 ;
or

(e) conduct the business of a private employ ment services agency in contravention of this
Act or any prescribed requirement.
[Para. (e) added by s. 23 of Act 31/2003] [S. 33 amended by s. 23 of Act 31/2003] (Commencement date of s. 33: 10 September 1999)

34. Penalties

Any person convicted of an offence referred to in section 33 may be sentenced to a fine or
imprisonment for a period not exceeding one year.
(Commencement date of s. 34: 10 September 1999)

35. Delegation

(1) The Minister may in writing delegate to the Director-General or any other officer of the
Department any power or duty conferred or imposed on the Minister by this Act.

(2) The Director-General may, in writing, delegate to any officer of the Department any
power or duty conferred or imposed on the Director-General by this Act.

(3) Any person to whom any power or duty has been delegated in terms of subsection (1) or
(2) must exercise that power or perform that duty subject to the conditions that the
person who made the delegation considers necessary.

(4) Any delegation in te rms of subsection (1) or (2) –

(a) must be in writing;

(b) does not prevent the person who made the delega tion from exercising the power
or performing the duty so delegated; and

(c) may at any time be wit hdrawn in writing by that person.
(Commencement date of s. 35: 10 September 1999)

36. Regulations

The Minister may, after consultation with the National Skills Authority, by notice in the
Gazette , make regulations regarding –

(a) any matter which may or mu st be prescribed under this Act;

(b) any procedure, period, criterion or sta ndard for SETAs to perform any function in terms
of
section 10 (1);

(c) categories and amounts of gran ts that may be allocated in terms of section 10 (1)(b)(iii);

(d) the criteria or conditions that may be attached to grants allocated in terms of section
10 (1)(b)(iii);

(e) the evaluation of applications for grants in terms of section 10 (1)(b)(iii);

(f) the manner in which grants may be allocated in terms of section 10 (1)(b)(iii);

(g) the exercise by a SETA of any power contemplated in section 10 (2);

(h) the content, format and timeframe fo r submitting any report or plan that SETAs are
required to submit in terms of this Act;

(i) the services in respect of which a SETA ma y earn income in terms of section 14 (1)(e)
and the fees, including maximum fees, that ma y be charged in respect of such services;

(j) the financial systems th at SETAs are required to utilise;

(k) the submission by employers to SETA s of workplace skills plans and reports and the
form and contents of such reports;

(l) the appointment by employers of wor kplace skills facilitators and the obligations of
employers in respect of workplace skills facilitators;

(m) the rights and functions of workplace skills facilitators;

(n) the rights of registered trade unions, or other employee representatives, to consult with
their employer over developing, implementing and reporting on workplace skills plans
and on other matters dealt with in this Act;

(o) circumstances specified in the regula tions under which a private employment services
agency may charge fees in respect of a ny services provided by private employment
services agencies and the maximum fees that may be charged;

(p) services for which private employment services agencies may not charge work-seekers fees;

(q) a form for registering pr ivate employment services agencies;

(r) the administration, operation, functioning and obligations of th e National Skills Fund;
and

(rA) any matter concerning the administration of apprenticeships or other qualifications in
terms of any repealed Act, including, but not limited to, issuing duplicate certificates;
[Para. (rA) inserted by s. 14 of Act 37/2008]

(rB) providing for the establishment of skills development forums in respect of each
provincial office and specifying the operati on, composition and functions of the forums;
[Para. (rB) inserted by s. 14 of Act 37/2008]

(s) any other matter which it is necessary or expedient to prescribe in order to achieve the
purposes of this Act.
[S. 36 substituted by s. 24 of Act 31/2003] (Commencement date of s. 36: 10 September 1999)

37. Repeal of laws and transitional provisions

(1) The laws referred to Schedule 1 are hereby repealed to the extent specified.

(2) The repeal of those laws is subject to any transitional provision in Schedule 2 .

(3) Schedule 2 to the principal Act is hereby repealed, except for item 4A.
[Subs. (3) added by s. 15 of Act 37/2008] (Commencement date of s. 37: 10 September 1999)

38. Act binds State

This Act binds the State.
(Commencement date of s. 38: 10 September 1999)

39. Short title and commencement

(1) This Act is called the Skills Development Act, 1998.

(2) This Act takes effect on a date to be determined by th e President by proclamation in the
Gazette .
(Commencement date of s. 39: 10 September 1999)

Schedule 1

REPEAL OF LAWS
(Section 37 (1))

No. and year of law Short title Extent of repeal
Act No. 56 of 1981 Manpower Training Act, 1981 The whole.
Act No. 62 of 1981 Guidance and Placement Act,
1981 The whole.
Act No. 41 of 1985 Local Government Training
Act, 1985 The whole.
Act No. 106 of 1996 Telecommunications Act, 1996 Sections 78 to 87.

Schedule 2

TRANSITIONAL PROVISIONS
(Section 37 (2))
1. ………..
[Item 1 repealed by s. 37 of Act 37/2008]

2. ………..
[Item 2 repealed by s. 37 of Act 37/2008]

3. ………..
[Item 3 repealed by s. 37 of Act 37/2008]

4. ………..
[Item 4 amended by s. 25 of Act 31/2003 and repealed by s. 37 of Act 37/2008]

4A. Mining Qualifications Authority

Despite anything to the contrary in either this Act or the Mine Health and Safety Act, 1996
(Act No. 29 of 1996)-

(a) and with effect from 20 March 2000-

(i) the Mining Qualifications Authority established in terms of section 41 (3) of the
Mine Health and Safety Act, 1996, must be regarded as having been established in
terms of
section 9 (1) of this Act as SETA 16;

(ii) Schedule 7 to the Mine Health and Safety Act, 1996, must be regarded as the
constitution of SETA 16; and

(iii) the Chief Inspector of Mines must be regarded as the chairperson of SETA 16;

(b) the Minister may, in consultation with the Minister of Minerals and Energy and after
consulting the Mining Qualifications Authority-

(i) amend Schedule 7 to the Mine Health and Safety Act, 1996, in order to bring the
constitution of SETA 16 into line with the constitutions of other SETAs; and

(ii) allow an interested professional body or a bargaining council with jurisdiction in
the mining sector to be represented on the Mining Qualifications Authority; and

(c) the Minister must, in consulta tion with the Minister of Minerals and Energy, with
regard to SETA 16, perform any function entrusted to the Minister in
Chapter 3 of
this Act.
[Item 4A inserted by s. 26 of Act 31/2003]

5. ………..
[Item 5 repealed by s. 37 of Act 37/2008]

6. ………..
[Item 6 repealed by s. 37 of Act 37/2008]

7. ………..
[Item 7 repealed by s. 37 of Act 37/2008]

8. ………..
[Item 8 repealed by s. 37 of Act 37/2008]

9. ………..
[Item 9 repealed by s. 37 of Act 37/2008]

10. ………..
[Item 10 amended by s. 23 of Act 9/99 and repealed by s. 37 of Act 37/2008]

11. ………..
[Item 11 repealed by s.37 of Act 37/2008]

12. ………..
[Item 12 repealed by s. 37 of Act 37/2008]

13. ………..
[Item 13 repealed by s. 37 of Act 37/2008]

14. ………..
[Item 14 amended by s. 23 of Act 9/99 and repealed by s. 37 of Act 37/2008]

15. ………..
[Item 15 repealed by s. 37 of Act 37/2008]

16. ………..
[Item 16 repealed by s. 37 of Act 37/2008] [Schedule 2 amended by s. 23 of Act 9/99 and ss. 25 and 26 of Act 31/2003]

Schedule 2A

TRANSITIONAL PROVISIONS: SKILLS DEVELOPMENT AMENDMENT ACT, 2008

1. Definitions

In this Schedule-

“Amendment Act” means the Skills Development Amendment Act, 2008;

“ETQA” means an Education and Training Quality Assurance Body accredited in terms of
section 5 (1)(a)(ii) of the South African Qualifications Authority Act, responsible for
monitoring and auditing achievements in terms of national standards or qualifications, and to
which specific functions relati ng to the monitoring and auditi ng of national standards or
qualifications have been assigned in terms of
section 5 (1)(b)(i) of that Act;

“Manpower Training Act” means the Manpower Training Act, 1981 (Act No. 56 of 1981);

“SAQA” means the South African Qualifications Authority;

“the Act” means the Skills Development Act, 1998 (Act No. 97 of 1998).

2. Contracts of apprenticeship in force immediately prior to commencement of
Amendment Act

(1) Subject to the provisions of this Sc hedule, all sections of the Manpower Training Act,
including any regulations and conditions of apprenticeship, that concern apprentices
remain in force insofar as they apply to any contract of apprenticeship in force
immediately prior to the commencement of the Amendment Act, as if the Manpower
Training Act had not been repealed.
(Commencement date of subitem (1): Publica tion date of regulations made in terms of s. 26J )

(2) For the purposes of this item-

(a) any function of the registrar must be performed by an official of the Department
of Labour designated by the Minist er for that purpose in writing;

(b) any function of a training board mu st be performed by the SETA to whom the
assets, rights, liabilities and obligations of the training board were transferred;

(c) any function of the National Traini ng Board must be dealt with by the National
Skills Authority.

(3) Any dispute about a contract of appr enticeship or any conditions of apprenticeship
applicable to that contract is deem ed to be a dispute contemplated in
section 19 (1) of the
Act and must be dealt with in terms of
section 19 of the Act, read with the changes
required by the context.

(4) Any outstanding matter concerning a contract of apprenticeship that had been
completed prior to the commencement of th e Amendment Act must be dealt with in
terms of the prevailing law immediately prio r to the commencement of the Amendment
Act.

3. Conversion of contracts of apprenticeship in force at commencement of Act

(1) Despite item 2, an employer and an apprentice who are party to a contract of
apprenticeship in force at the commencement of this Act may conclude a learnership
agreement in accordance with the form prescribed in terms of
section 17 (3) of the Act,
subject to the following:

(a) The training provider must be a pa rty to the learnership agreement, unless the
training element of the appren ticeship has been completed;

(b) the learnership agreement may only be terminated in terms of section 17 (4);

(c) the employer and apprentice must, in addition, conclude a written contract of
employment;

(d) the apprentice is deemed to be a learner contemplated in section 18 (2) of the Act
and must be employed on terms and condi tions of employment that are no less
favourable than those that are applicable in terms of
section 18 (1) of the Act;

(e) paragraphs (c) and (d) do not appl y to an apprentice who was already employed
by the employer prior to the commencement of the contract of apprenticeship.
(Commencement date of subitem (1): Publica tion date of regulations made in terms of s. 26J )

4. Trades deemed to be listed

Any trade which immediately prior to the commencement of this Act was designated, or
deemed to have been designated, in terms of
section 13 (1) of the Manpower Training Act, is
deemed to have been listed in terms of section 26B(a) of the Amendment Act.

5. Coming into operation of QCTO

The QCTO comes into operation on a date determined by the Minister in the Gazette.

6. SAQA accreditation of SETA ETQAs

(1) Until such time as the QCTO delegates powers and functions to a SETA in terms of
Chapter 6B of the Act, a SETA ETQA will-

(a) remain accredited by SAQA;

(b) continue to perform all ETQA functions prescribed by the South African
Qualifications Authority Act; and

(c) have any matter concerning the performance of ETQA functions by a SETA dealt with in terms of the South African Qualifications Authority Act.

(2) The accreditation of any education and skills development provider by a SETA ETQA
remains in effect until the accreditation-

(a) lapses;

(b) is withdrawn by the SETA ETQA; or

(c) is withdrawn in terms of regulations made under section 26J of the Act.

7. National Productivity Institute

(1) On a date determined by the Minister by notice in the Gazette, all the assets, rights,
liabilities and obligations of the National Productivity Inst itute, a company incorporated
in terms of
section 21 of the Companies Act, 1973 (Act No. 61 of 1973), registration
number 75/04742/08, are transferred to Productivity South Africa.

(2) The National Productivity Institute must thereafter be wound up in accordance with its
articles of association.
[Schedule 2A inserted by s. 16 of Act 37/2008]

Schedule 3

COMPOSITION AND CONSTITUTION OF QCTO

1. Composition of QCTO

(1) The QCTO consists of 16 members appointed by the Minister, as follows:

(a) The chairperson;

(b) the chief executive officer of the SAQA;
[Para. (b) substituted by s. 6 of Act 26/2010]

(c) the executive officer of the National Skills Authority;

(d) the chief executive officer of the QCTO;
[Para. (d) substituted by s. 6 of Act 26/2010]

(e) the chief executive officer of the Council on Higher Education established in
terms of section 4 of the Higher Education Act, 1997 (Act No. 101 of 1997);
[Para. (e) substituted by s. 6 of Act 26/2010]

(f) the chief executive officer of Umalusi established in terms of section 4 of the
General and Further Education and Trai ning Quality Assurance Act, 2001 (Act
No. 58 of 2001);

(g) two members nominated by NE DLAC to represent organised labour;

(h) two members nominated by NEDLAC to represent organised business;

(i) two members nominated by NEDLAC to represent organisations of community
and development interests;

(j) one members nominate d by the Minister of Education to represent the interests of
public education and training providers;

(k) one member nominated by the private providers of education and training to
represent the interests of private education and training providers; and

(l) two additional members to represent the interests of the State.

(2) Members of the QCTO contemplated by s ub-items (1)(a) and (g) to (l) hold office for a
period of five years and are eligible for reappointment upon expiry of their terms of
office, but may not serve more than two consecutive terms of office.

2. Constitution of QCTO

The Minister must approve the constitution of the QCTO, which subject to this Act-

(a) must provide for-

(i) the establishment and functioning of committees, including an executive
committee;

(ii) rules for convening and conducting of meetings of the QCTO and its committees,
including the quorum required for and the mi nutes to be kept of such meetings;

(iii) the voting rights of the different members and the manner in which decisions are
to be taken by the QCTO and its committees;

(iv) the circumstances and manner in wh ich a member of the QCTO may be removed
from office;

(v) the procedure for the f illing of vacancies on the QCTO;

(vi) a code of conduct for the members of the QCTO;

(vii) the circumstances and manner in which the Minister may dissolve the QCTO and
appoint an administrator on a tempor ary basis to perform its functions;

(viii) the determination through arbitrati on of any dispute concerning the interpretation
or application of the constitution;

(ix) the procedure for amending the constitution;

(x) the procedure for advising the Minister on regulations to be made in terms of
section 26 ; and

(b) may provide for any other matter necessa ry for the performance of the functions of the
QCTO.
[Schedule 3 inserted by s. 16 of Act 37/2008]

Schedule 4

COMPOSITION AND CONSTITUTION OF PRODUCTIVITY SOUTH AFRICA

1. Composition of Productivity South Africa

(1) Productivity South Africa consists of seven members appointed by the Minister, as
follows:

(a) The chairperson;

(b) two members nominated by NE DLAC to represent organised labour;

(c) two members nominated by NEDLAC to represent organised business; and

(d) two members to represent the government.

(2) Members of Productivity South Africa hold office for a period of five years and are
eligible for reappointment upon expiry of thei r terms of office, but may not serve more
than two consecutive terms of office.

2. Constitution of Productivity South Africa

The Minister must approve the constitution of Pr oductivity South Africa, which subject to this
Act –

(a) must provide for-

(i) the establishment and functioning of committees, including an executive
committee;

(ii) rules for convening and conducting of meetings of Productiv ity South Africa and
its committees, including the quorum required for and the minutes to be kept of
those meetings;

(iii) the voting rights of the different members and the manner in which decisions are
to be taken by Productivity South Africa and its committees;

(iv) the circumstances and manner in which a member of Productivity South Africa
may be removed from office;

(v) the procedure for the filling of vacancies on Productivity South Africa;

(vi) a code of conduct for the members of Productivity South Africa;

(vii) the circumstances and manner in which the Minister may dissolve Productivity
South Africa and appoint an administrato r on a temporary basis to perform its
functions;

(viii) the determination through arbitrati on of any dispute concerning the interpretation
or application of the constitution;

(ix) the procedure for amending the constitution;

(x) financial arrangem ents, including bank accounts, investment of surplus money,
annual budgets, annual reports, financia l statements and annual audits;

(xi) the appointment of an executive o fficer and such other employees necessary for
the effective performance of the functi ons of Productivity South Africa by its
members, including the determination of their terms and conditions of
employment; and

(b) may provide for any other matter nece ssary for the performance of the functions of
Productivity South Africa.
[Schedule 4 inserted by s. 16 of Act 37/2008]

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