New Seta Claims Procedure


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New rules for claiming money from Setas 27-JUL-05

From TSP - The Skills Portal


While the Skills Development Act of 1998 outlines the broad structure of the skills development initiatives in South Africa, the ‘nitty-gritty’ of the operations is governed by a set of official Regulations.

While an amendment bill is needed to change an act of parliament, Regulations can be changed by the relevant minister after consultation with his or her advisors. A new set of Regulations for the Skills Development Act has now been published in the Government Gazette after a lengthy consultation with stakeholders including the National Skills Authority.

These latest Regulations will mean that all previous versions are repealed in their entirety. The new Regulations stipulate that a Seta may spend up to 12,5% of its levy income for its own running costs.

Regarding the Mandatory Grants that Setas pay out, the Regulations state the Seta must allocate this grant to an employer who submits the relevant Workplace Skills Plan (WSP). The Setas also have to make a simplified WSP available for employers with less than 50 employees.

Previously each Seta set its own submission dates for WSPs and also had the discretion to allow extensions to the due date. Under the new rules, WSPs for all Setas have to be submitted by the 30th September this year, and Setas will not be allowed to grant extensions. From next year the due date will move to the 30th June each year.

Employers who don’t claim their grants within the specified time will lose the money and it will immediately be swept to discretionary funds.

In an effort to ensure that funds leave Seta bank accounts to be used for training, 14 different activities may be funded through discretionary funds.

These include, research, training of skills development facilitators, Abet, scarce skill training, work experience, institutes of sectoral excellence, new venture creation learnerships, sector capacity building and learnerships.

Section 11 of the Regulations limits the ability of Setas to charge for their services. The Services Seta have made it know that they would like to charge for granting accreditation to training providers. In terms of the new Regulations they will need to apply to the Director General of the Department of Labour for permission before they can implement that policy.

The most controversial aspects of the Regulations are the issues they don’t talk about.

Under the new legal framework there is no reference to the Skills Development Facilitator (SDF). This position has been played by the individual responsible for drafting the Workplace Skills Plan and liaising between the company and the Seta.

The duties of the SDF were outlined in government notice R103 which has now been repealed. A fundamental aspect of skills planning previously was the consultation required between the employer and staff. Companies with more than 50 employees were previously required by the Regulations to consult with staff on the WSP and Implementation Report. The legal requirements for the consultation have been repealed along with notice R103.

NOTE: The new regulations detailed above have been published in Government Gazette 27801 dated 18th July 2005.

SEE: The SARS document regarding the increased SDL limit

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