Skill Dev Act

7/29/2019 Skill Dev Act

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A C TTo amend the Skil ls Development Act , 1998, so as to def ine certain expressions; tobroad en the purpo se of the Act; to provide anew for the funct ions of the Nat ionalSkil ls Authority; to provide anew for the composit ion of the Nat ional Skil lsAuthority; to provide anew for the funct ion of the SETAs, to provide forapprent iceships; to make further provis ion in respect of the implementat ion ofemployment services; to increase the quality and quantity of art isans; to repealremaining sect ions of the current Manpower Training Act , 1981; to provide forSkil ls Development Inst itutes; to provide for the Quality Council for Trades andOcc upatio ns; to clarify the legal status of Produ ct iv ity So uth Africa; to clarify thelegal and governance status of the Nat ional Skil ls Fund; and to provide for mattersconnected therewith .

B E IT ENACTED by the Par l iament of the Republic of South Afr ica, asfo l lo ws :Am end me nt of sect ion 1 of Act 97 of 1998, as ame nde d by sect ion 23 of Act 9 of 1999and sect ion 1 of Act 31 of 2003

1. Section 1 of the Skills Deve lopm ent Act, 1998 (hereinafter referred to as thepr incipal Act) , is hereby amended by(a) the inser t ion before the def in it ion of "Basic Condit ions of Employment Act '*of the following definitions:

" 'apprent icesh ip ' means a learnership in respect of a l is ted trade, andincludes a trade-test in respect of that trade;'art i san ' mea ns a person that has been cer t ified as comp etent to performa l is ted trade in accordance with th is Act;


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(b ) the insertion after the definition of "Labour Court" of the followingdefinitions:

" ' learner ' includes an apprentice;i e a r n e r s h i p ' includes an apprenticeship ;' l earn ing ' means the acquis i t ion of knowledge, unders tanding , values ,sk il l , competence or exper ience;' l earn ing programme' includes a Iearnership , an apprenticeship , ask il ls programme and any o ther prescr ibed learn ing programme whichincludes a s tructured work exper ience component;" ;

(c ) the insertion after the definition of "Minister" of the following definition:" 'Nat ional Qualif icat ions Framework' means the National Qualif icat ions Framework contemplated by the National Qualif icat ions Framewo rk Act , 2 0 0 8 ;" ;

(d) the inser t ion af ter the def in it ion of "NEDLAC" of the fo llowing def in it ions:" 'occupat ional qualif icat ion' mea ns a qualif icat ion associated with atrade, occupation or profession resulting from work-based learning andconsis t ing of knowledge unit s tandards , practical unit s tandards andwork exper ience unit s tandards;'Occupat iona l Qua l i f ica t ions Framework' mea ns the sub-f ramewo rkfor occupational qualifications which forms an integral part of theNational Qualif icat ions Framework;";(e ) the insertion before the definition of "prescr ibed" of the following

definitions:" " p l a c e m e n t " mea ns p lacing an indiv idual in a p lacem ent oppor tunity ,with due regard to the Code of Good Practice on the In tegration ofEmployment Equity in Human Resources Policies and Practices in termsof the Employment Equity Act, 1998 (Act No. 55 of 1998) ;" .'p lacement opportuni ty ' means any oppor tunity for work or learn ingthat could be offered to an individual and includes a vacancy foremployment, an oppor tunity for self -employment, a learn ing programmean d co mmu n i ty se rv ice ;" ;

(f) the insertion after the definition of "Publ ic F inance Management Act" ofthe following definition:

" ' Q C T O ' means the Quali ty Council for Trades and Occupationsestablished in terms of section 26G;";(g) the insertion after the definition of "regula t ion" of the following definition:

" 'repealed Act ' m e a n s (i) the Ma npow er Train ing Act, 1981 (Act No . 56 of 1981) ;( i i) any law repealed by the Ma npow er Train ing Act, 198 1, and any law

repealed by such an Act; and(iii) any law listed in Sche dule 1 to the Integra tion of La bou r La ws Act,

1994 (Act No. 49 of 1994), dealing with training or skillsd e v e l o p m e n t ; " ;(h ) the insertion after the definition of "ski l l s deve lopment lev ies" of the

following definition:" ' sk i l l s deve lopment prov ider ' means a provider of an occupationallea rn in g ; an d " ;

(i) the insertion after the definition of "th is Act" of the following definition:" ' t rade' means an occupation for which an artisan qualification isrequired in terms of section 26B;".


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Am end me nt of sect ion 2 of Act 97 of 1998, as amen ded by sect ion 23 of Act 9 of 19992. Section 2 of the pr incipal Act is hereby amended by

(a ) the substitution in subsection (1) for paragraphs (d ) and (f) of the followingp arag rap h s :"(d) to encourage workers to par t icipate in [ learnership and other

training] l ea rn in g p ro g rammes ;(f) to ensure the quality of [educat ion and training] learning in andfor the workplace;";

(b ) the substitution for subsection (2) of the following subsection:"(2) Those purposes are to be achieved [by ] th ro u g h

(a) [establishing] an institutional and financial framework comprisin g (i) the Nati onal Skills Aut horit y;

(ii) the Natio nal Skills Fund;( i ii ) a sk il ls developm ent levy-f inancing schem e as contem plated

in the Skil ls Development Levies Act;( iv) SETAs;(v ) [ labour centres; and] provincial offices of the Department;

(vi) [ the Sk i l l s Deve lopment Planning Unit ; ] labour centres ofthe Depar tment;(vii) accredited trade test centres;

(v ii i) sk il ls development ins t i tu tes ;( ix) the Quali ty Council for Trades and Occupations;(x) a sk il ls developm ent forum for each province;(x i) a national ar tisan moderation body ; and(xii) Productivity South Africa;

(b) encouraging par tnerships between the public and pr ivate sectors ofthe economy to provide [educat ion and training] learning in andfor the workplace; and

(c) co-operating with the South Afr ican Qualif icat ions Author i ty ." .Amendment of sect ion 5 of Act 97 of 1998, as subst ituted by sect ion 2 of Act 31 of2003

3 . Section 5 of the pr incipal Act is hereby amended by(a) the substitution for subsection (1) of the following subsection:"(1) The functions of the National Skil ls Author i ty are

(a) to advise the Minis ter on(i) a national sk il ls develo pme nt policy ;( i i) a national sk ills developme nt s trategy;

(iii) guide lines on the im plem enta tion of the national skillsdevelopment s trategy;(iv) the strategic framework and criteria for allocation of [subsi

dies] funds from the National Skills Fund; and(v) any regulat ions to be made;

(b ) to l ia ise with SETAs on(i) the national sk il ls develop men t policy ;(ii) the national skills development strategy; and

(iii) sector skills plans;(c ) to report to the Minister [ in the prescr ibed manner] on theprogress made in the implementation of the national sk il ls

development s trategy;


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(d) to conduct investigations on any matter arising out of theapplication of this Act; [and](dA)to l ia ise with the QCTQ on occupational s tandards and qualif ications; and(e) to exercise any other powers and perform any other duties conferred

or imposed on the Author i ty by th is Ac t." ; and(b) the addition of the following subsection:"(4) Subsection (])(a)(\v) does not apply to regulations in respect ofwhich the Minis ter is required to consult with the QCT Q or Productiv ity

South Afr ica." .Amendment of sect ion 6 of Act 97 of 1998, as subst ituted by sect ion 3 of Act 31 of2003

4 . Section 6 of the pr incipal Act is hereby amended by(a) the substitution in subsection (1) for paragraph (b) of the fo llowing paragraph:

"(b) 24 voting and [five] s ix non-voting members appoin ted by theM i n i s t e r " ;(b) the substitution in subsection (2) for paragraph (e ) of the fo llowing paragraph:

"(e) four voting members appoin ted by the Minis ter to represent theinterests of education and [ training] skil ls development prov i d e r s ; " .

(c ) the substitution in subsection (2) for paragraphs (f) and (g) of the followingp arag rap h s :"(f) two non-voting members , who have exper t ise in the provis ion of

employment serv ices , appoin ted by the Minis ter ; [ a n d ](g) a non-voting mem ber nomina ted by the South African Qualif icat ions Author i ty and appoin ted by the Minis ter [ to represent that

Authority .};";(d) the addition to subsection (2) of the following paragraph:

"(h) a non-voting member nominated by the QCTQ and appointed by theMin is te r . " ;(e ) the substitution for subsection (3) of the following subsection:

"(3) The Minis ter must designate [ four] f ive members as deputychairpersons, one deputy chairperson each f rom the members to beappointed to represent(a) organised labour ;(b) organised business;(c) organisations of community and development in teres ts ; [and](d) the interests of the State; and(e) education and sk il ls development providers ." ;

(f) the substitution for subsection (4) of the following subsection:"(4 ) A mem ber of the Auth ority h olds office for a period of [ three] fiveyears and is eligible for re-appointment on expiry of his or her term ofoffice, but may not serve more than two consecutive terms of office.";and

(g) the substitution for subsection (7) of the following subsection:"(7 ) If the chairperso n or a me mb er of the Aut hority vaca tes officebefore the expiry of the period of office, the Minister must, in terms of

subsection \(a) or (2) , respectively , appoin t a new chairperson ormember, as the case may be, for the unexpired portion of that periodwi th in 9 0 d ay s . " .

Amendment of sect ion 10 of Act 97 of 19985. Section 10 of the principal Act is hereby amended by the substitution for subsection

(1) of the following subsection:"(1) A SETA must, in accordance with any requirements that may be

p rescr ib ed


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(a) develop a sector skills plan within the framework of the national skillsdevelopment s trategy;

(b) implement i ts sector sk il ls p lan by(i) establishing [ learnersh ips ] l ea rn in g p ro g rammes ;( i i) approving workplace sk il ls p lans and annual train ing repor ts ;( i ii ) a l locating grants in the prescr ibed manne r and in accorda nce with any

prescr ibed s tandards and cr i ter ia to employers , education and [ training]skil ls development providers and workers ; and( iv) monitor ing education and [ training] skil ls development provis ion in thesector;

(c) p ro mo te [ learnersh ips ] l ea rn in g p ro g rammes b y (i) identify ing workplaces for practical work exper ien ce;( i i) suppor ting the develop men t of learn ing mater ials ;

(iii) imp roving the facilitation of learn ing; and(iv) assisting in the conc lusio n of [ learnersh ip] agreements for learn ing

programmes, to the extent that i t is required;(d) regis ter [ learnersh ip] agreements for learn ing programmes, to the extent thatit is required;(e) [within a week from its establishment , apply to the South African

Qualif icat ions Authority for accreditat ion as a body contemplated insect ion 5(l)(a)(ii)(bb) and must , within 18 months from the date of thatapplicat ion, be so accredited] perform any functions delegated to it by theQCTO in terms of section 261;

(f) when required to do so as contemplated in section 7(1) of the SkillsDevelopment Levies Act, co llect the sk il ls development lev ies , and mustdisburse the levies, allocated to it in terms of sections 8(3)(i?) and 9(b), in itssector ;

(g) liaise with the National Skills Authority on(i) the national sk il ls develop men t policy ;(ii) the national skills dev elop me nt strateg y; and

(iii) its sector skills plan ;(h ) submit to the Director-General(i) any budgets , repor ts and f inancial s tatements on i ts income and

expenditure that it is required to prepare in terms of the Public FinanceMan ag emen t Act ; an d(ii) strategic plans and reports on the imp lem enta tion of its [sector skil lsp lan and] serv ice level agreement;(i) liaise with the [ employment serv ices ] provincial offices and labour centres ofthe Depar tment and any education body established under any law regulat ing

education in the Republic to improve information(i) about [ e m p l o y m e n t ] placement oppor tunit ies ; and( i i) between education and [ training] skil ls development providers and thelabour market;

(iA) l ia ise with the sk il ls developm ent forums established in each province in suc hmanner and on such issues as may be prescr ibed;

(j) subject to section 14, appoint staff necessary for the performance of itsfunctions;

(jA) promote the national s tandard es tablished in terms of section 30B; [and](jB) l ia ise with the QCTO regarding occupational qualif icat ions; and(k) perform any o ther duties imposed by th is Act or the Skil ls D evelop men tLevies Act or consis tent with the purposes of th is Act." .


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Subst itut ion of sect ion 16 of Act 97 of 19986. The following section is substituted for section 16 of the principal Act:

'Learnersh ips

16. A SETA may esta blish a Iearners hip if(a) the Iearnership [consists of ] includes a s tructured learn ing co mpon ent;(b) the Iearnership includes [pract ical] a s tructured work exp er ience [of aspecif ied nature and durat ion] co mp o n en t ;(c ) the Iearnership would lead to a qualification registered by the SouthAfrican Qualifications Authority [and related to an] associated with atrade, occupation or profession; and(d) the intended Iearnership is registered with the Director-General in theprescr ibed manner ." .

Am end m ent of sect ion 17 of Act 97 of 19987. Section 17 of the pr incipal Act is hereby amended

(a) by the substitution for subsection (1) of the following subsection:"(1) For the purposes of th is Chapter , a ' Iearnership agreem ent ' mea nsan agreement en tered in to for a specif ied per iod between

(a ) a learner ;(b ) an employer or a group of employers (in this section referred to as' the em ploy er ' ) ; and \(c ) a [ training] skil ls development provider accredited by [a body

contempla ted in sect ion 5(l)(a)(\i)(bb) of the South AfricanQualif icat ions Authority Act] the QCTQ or group of such[ training] sk il l s d ev e lo p men t p ro v id er s ;" ;

(b) by replacing the words "tra in ing prov ider" with "ski l l s deve lopm ent !prov ider" , where they appear in subsections (2)(c) and (5);(c) by the deletion in subsection (7) of the word "and" at the end of paragraph (a);(d) by the addit ion to subsection (7) of the fo llowing paragraph s:

"(c) prescr ib ing the requirem ents for reg is ter ing an agency con templated in paragraph (a); and(d ) making it an offence to operate an agency contemplated inparagraph (a) except in accordance with such regulat ions ." .

Subst itut ion of heading to Chapter 6 of Act 97 of 19988. The fo llowing heading is hereby substi tu ted for the heading to Chapter 6 :

I N S T I T U T I O N S I N D E P A R T M E N T O F L A B O U R A N D [ R E G U L A T I O NO F P R I V AT E ] E M P L O Y M E N T S E R V I C E S [ A G E N C I E S ] .

Subst itut ion of sect ion 22 of Act 97 of 19989. The following section is hereby substituted for section 22 of the principal Act:

"[Ski ll s Deve lopmen t Planning U nit ] Adm inis t ra t ion o f Act by D epart m e n t

22 . (1) Subject to the laws governing the public serv ice, the Director-Gen era l mu s t [(a ) es tab l ish a Sk i ll s Deve lopmen t Planning U nit in the D epartm ent ;a n d ](b) provide the Unit with] ensure that the Depar tment, including i tsprovinc ial offices and labou r centres, has the perso nnel an d financial

resources necessary for the performance of its functions in terms ofth is Act.


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(2) The functions of the [Sk i l l s Deve lopment Planning Unit ] Dep ar t ment in terms of th is Act are(a) to research and analyse the labour market in order to determ ine sk il lsdevelopment needs for

(i) South Africa as a wh ole;(ii) each sector of the eco nom y; and(iii) organs of state;(b) to assist in the formul ation of(i) the national skills dev elop me nt strateg y; and(ii) sector skills dev elop me nt plan s; and

(c) to provide information on skills to(i) the Min ister;(ii) the Natio nal Skills Aut hority ;( i i i ) SETAs;(iv) edu cation and [ training] skil ls development providers ;[and](v) organs of the state;(v i) the sk il ls development forums in each province;(v ii) the QCTO; and(viii) any other interested party; and

(d) to perform any other function assigned or delegated to the Departmentin terms of th is Act." .

Am end me nt of sect ion 23 of Act 97 of 199810 , Section 23 of the principal Act is hereby amended by the substitution for

subsections (1) and (2) of the following subsections, respectively:" ( 1 ) [Subject to the laws governing the public service, the Director-General

m u s t (a ) es tab l i sh labour centres in the Departm ent ; and(b ) appoint such number of persons in the public service at each centre as isnecessary to perform the funct ions of that centre. ] The functions of

provincial of fices of the Depar tm ent in respect of emp loym ent serv ices are (a) to plan, coordinate, support, monitor and report on all activities

occurring at all labour centres;(b) to es tablish a sk il ls development forum as prescr ibed;(c ) to maintain a data-base of sk il ls development providers with in theirjur isd ict ion; and(d) to perform any other prescribed or delegated function.

(2) The functions of [ those] the labour centres of the Depar tment in respect ofemp lo y men t se rv ices a r e(a) to provide [ employment serv ices for] information to workers , employers and

[ training] skil ls development providers , including [ improvement o f suchserv ices to rural com munit ies ] th e u n emp lo y ed ;

(b) to regis ter work-seekers ;(c ) to regis ter [vacancies and work] placement oppor tunit ies ;(d) to ass is t workers and o ther prescr ibed categor ies of persons(i) to enter [specia l educat ion and training] l ea rn in g p ro g rammes ;

(ii) to find [ employment ] placement oppor tunit ies ;(iii) to start incom e-gen eratin g projec ts; and(iv) to participa te in [ spec ia l employment ] p lacemen t p ro g rammes ; [and]

(e) [ to perform any other prescribed funct ion related to the funct ionsreferred to in paragraph (a) to (d)] to develop p lans , programmes andcoherent s trategies to extend serv ices to rural communities ; and


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(f) to perform any other prescribed function related to the functions referred to inparagraphs (a) to (e)."\Insert ion of sect ions 26A to 26M in Act 97 of 1998

11 . The following sections are hereby inserted in the principal Act after section 26:"CHAPTER 6A

A R T I S A N D E V E L O P M E N TNat iona l art i san modera t ion body

26A. (1) The Director-General must(a ) establish a national ar t isan moderation body in the Depar tment; and(b ) provide the body contemplated in paragraph (a) with the personnel

and financial resources that are necessary to coordinate artisandevelopment in the Republic .(2) The functions of the national artisan moderation body are to

(a ) monitor the performance of accredited ar t isan trade tes t centres ;(b ) moderate ar t isan trade tes ts ;(c) develop , maintain and apply a national data-bank of ins truments forassessment and moderation of ar t isan trade tes ts ;(d ) develop and maintain a national data-base of regis tered ar t isan tradeassessors and moderators ;(e ) record ar t isan achievements ;(f) determine appeals against assessment decis ions;(g) recommend the cer t if icat ion of ar t isans to the QCTO; and(h ) perform any other presc ribed function.List ing of trades

2 6 B . The Minis ter may, on application by one or more SETAs in theprescribed form, by notice in the Gazette(a) list any occupation as a trade for which an artisan qualification isrequired;(b ) remove any trade f rom the l is t contemplated in subparagraph (a) if an

artisan qualification is no longer required for that trade.National register of art isans

2 6 C . (1) The Director-General must maintain a regis ter of persons(a ) who have obtained an artisan qualification in terms of this Act or anyrepealed Act; and(b ) who are practicing that trade.(2 ) (a) No person, whether employed or self -employed, may holdthemselves out to be qualified as an artisan in a listed trade unless thatperson is registered as an artisan in terms of subsection (1).

(b) Paragraph (a ) does not affect any requirement that any professional orregulatory body regulating any listed trade may require for the practice ofthat trade.

(3) For the purpose of this section, a person qualified to be an artisan interms of any repealed Act includes any person who com pleted a contract ofapprenticeship under a t ime-based apprenticeship system in terms of anycondit ions of apprenticeship published in terms of any repealed Act.

(4) The Minis ter may make regulat ions concerning


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(a) the criteria and procedure for the name of any person to be includedon, or removed from, the register of artisans;(b) any other matter necessary for maintaining the register of artisans.Trade tests

2 6 D . (1) Subject to any regulation made in terms of subsection (5), noperson m ay obtain an artisan qualification in term s of this Ac t unless theyhave successfu lly undergone a trade tes t adminis tered by an accreditedtrade test centre.

(2) A person m ay apply to undergo a trade test in respect of a trade if(a) that person has completed a learnership relevant to that t rade; or(b) that person has satisfied the relevant requirements of an ap prenticeshipin respect of that trade; or(c) an accredited trade test centre has certified that the person has acquiredsufficient prior learning related to that trade; and(d) that person has completed any o ther learn ing programme result ing in

an occupational or vocational qualification inclusive of prescribedwork exper ience that en ti t les such person to undergo the relevant tradetest.

(3) An accredited trade tes t centre may require any pe rson wh o applies toundergo a trade tes t to undergo a prel iminary evaluation to determinewhether that person has suff icient exper ience and knowledge in respect ofthe trade in question to undergo the trade test.

(4) The QC TO m ust issue any person who successfu lly comp leted a tradetest with a trade certificate in the prescribed form, stating that that person isqualified to perform the trade specified in the certificate.

(5) The Minis ter , af ter consult ing the QCTO, may make regulat ionsco n cern in g (a) the procedure for applying to undergo a trade test;(b) the criteria for determining whether a learner should be required toundergo a prel iminary trade tes t evaluation;(c) the payment of fees for undergoing a trade test;(d) the contents of a preliminary evaluation or trade test in respect of anytrade;(e) any matter related to conducting or moderating of trade tes ts ;(f) the criteria for granting exemptions from all or some of therequirements in respect of a trade test before being registered as an

artisan;(g) the form of certificate issued to artisans who successfully undergo atrade test;(h) any o ther matter necessary for the conducting or moderating of trade

tests.C H A P T E R 6 B

S K I L L S D E V E L O P M E N T I N S T I T U T E SSkills development inst itutes

2 6 E . (1) The Minister may, by notice in the Gazette, establish skillsdevelopment ins t i tu tes in accordance with the prescr ibed requirements andma y contribute the resource s that are necessary for the effective performance of their functions.

(2) A skil ls developm ent ins t i tu te ma y(a ) provide advisory serv ices on sk il ls development, mentor ing and the

recognition of prior learning;(b) provide learn ing programmes; and


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(c ) perform any other prescribed function necessary to promote skillsd ev e lo p men t .

(3) The Minis ter may make regulat ions concerning(a) the es tablishment, functions , operation , legal s tatus , governance and

funding of skills development institutes;(b ) any other matter that it is necessary or expedient to prescribe in order

to enable sk il ls development ins t i tu tes to perform their functions .(4) The Minis ter may make d if ferent regulat ions under subsection (2)with respect to different skills development institutes.

C H A P T E R 6 CQ U A L I T Y C O U N C I L F O R T R A D E S A N D O C C U P A T I O N S

Policy on occupat ional standards and qualif icat ions26F. (1) The Minister, after consulting the QCTQ, may by notice in the

Gazette determine policy on(a ) an occupational qualifications sub-framework as an integral part of the

National Qualif icat ions Framework;(b ) the sub-framework for quality assurance for occupational qualificat ions; and(c ) any o ther matter concerning occupational s tandards or occupationalqualifications.Establ i shment o f QCTO

2 6 G . (1) The Quali ty Council for Trades and Occupations is herebyestablished as a jur is t ic p erson.

(2) The QCTO must be managed in accordance with the Public FinanceMan ag emen t Act .(3) The QCTO consis ts of 16 members appoin ted by the Minis ter in

accordance with Schedule 3 .(4) The Minis ter must approve a consti tu t ion for the QCTO which ,subject to th is Act, complies with the requirements set out in Schedule 3 .(5) The Minis ter must appoin t the executive off icer of the QCTO.

(6) The QCT O is financed f rom(a) money voted by Par l iament for th is purpose;(b) income earned f rom serv ices rendered by i t ;(c) grants or donations made to it; and(d) money received f rom any o ther source. ' 'Funct ions o f QCTO

2 6 H . (1) The QCTO must advise the Minis ter on al l matters of policyconcerning occupational s tandards and qualif icat ions .(2) The QCTO must perform its functions in terms of this Act and the

National Qualif icat ions Framework Act, 2008.(3) Subject to any policy issued by the Minister in terms of section 26F,the QCTO is responsib le for(a) establish ing and maintain ing occupational s tandards and qualif ica

t ions;(b) the quality assurance of occupational s ta ndards and qualif icat ions and

learning in and for the workplace;(c ) designing and developing occupational s tandards and qualif icat ionsand submitting them to the South African Qualifications Authority for

regis trat ion on the National Qualif icat ions Framework;(d ) ensuring the quality of occupational standards and qualifications andlearn ing in and for the workplace;(e ) promoting the objectives of the National Qualif icat ions Framework;


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(f) l ia is ing with the National Skil ls Author i ty on the su itab il i ty andadequacy of occupational s tandards and qualif icat ions and on thequality of learning in and for the workplace;

(g) liaising with the South African Q ualificatio ns Authority , other Q ualityCouncils and profess ional bodies responsib le for es tablish ing s tandards and qualifications or the quality assurance of standards andqualifications; and

(h) performing any o ther prescr ibed function .(4) The QCTO has al l such powers as are necessary to enable i t toperform its functions in terms of this section.(5) The Minis ter may issue writ ten instructions , which are not

inconsis tent with any policy made by the Minis ter in terms of section 26F,to the QCTO regarding the performance of i ts functions in terms ofsubsection (3) .

(6 ) Th e QC TO mu s t co mp ly w i th (a) any policy determined by the Minis ter in terms of section 26F; and(b) any writ ten instruction issued by the Minis ter in terms of subsec

tion (5).Delegat ion of funct ions

261. (1) The QCTO may, in writ ing and subject to such condit ions as i tmay determine, delegate any of i ts functions to(a) the executive officer of the QCTO;(b) a committee of the QCTO;(c ) the national ar t isan moderation body established in terms of section2 6 A ;(d) a SETA; or(e ) any other suitable body.(2) A delegation under subsection (1)(a) does not d ivest the QCTO of the function delegated and the QCTO

may at any t ime review, amend or set as ide any decis ion made underthe delegation;

(b) does not prevent the performance of the function by the QCTO itself;an d

(c) may be revoked by the QCTO at any t ime.Regulat ions regarding occupat ional standards and qualif icat ions

26J. The Minis ter may, af ter consult ing the QCTO, by notice in theGazette make regulat ions regarding(a) the set t ing of occupational s tandards and qualif icat ions;(b) the recognit ion and regis trat ion of occupational curr icu la;(c) the accreditat ion of occupational sk il ls development providers ;(d) the approval of occupational learn ing programmes;(e) the regis trat ion of occupational assessors and moderators ;(f) the certification for occupational standards and qualifications;(g) the accreditat ion of occupational assessment centres ;(h) the approval of workplaces for occupational train ing and the

monitor ing of workplaces for occupational train ing;(i) the provis ion of occupational foundational learn ing;(j) the provis ion of in ternships;(k) the appoin tment of occupational communities of exper t practice;(I) the organis ing f ramework for occupations;(m ) the recognition of prior learning in respect of occupational qualifica

tions; and


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A c t N o . 3 7 , 2 0 0 8 S K I L L S D E V E L O P M E N T A M E N D M E N T A CT , 2 00 8

(n ) any o ther matter concerning occupational s tandards and qualif icat ionsor which it is necessary or expedient to prescribe in order to enable theQCTO to perform its functions under th is Act.

C H A P T E R 6 DW O R K P L A C E P R O D U C T I V I TY A N D C O M P E T I T I V E N E S S

Establishment of Product iv ity South Africa26K. (1) Productivity South Africa is hereby established as a juristic

person.(2) Productiv ity South Afr ica must be managed in accordance with the

Pu b l ic F in an ce Man ag emen t Act .(3) The Board of Productiv ity South Afr ica consis ts of seven membersappointed by the Minis ter in accordance with Schedule 4 .(4) The Minis ter must approve a consti tu t ion for Productiv ity SouthAfr ica w hich , subject to th is Act, com plies w ith the requiremen ts set out in

Schedule 4 .

Funct ions of Product iv ity South Africa2 6 L . The functions of Productiv ity South Afr ica are

(a) to promote a cu lture of productiv ity in workplaces;(b) to develop relevant productiv ity competencies ;(c) to facil i ta te and evaluate productiv ity improvement and competi t iveness in workplaces;(d) to measure and evaluating productiv ity in the workplace;(e) to maintain a data-base of productiv ity and competi t iveness systemsand publicis ing these systems;(f) to under take productiv ity- related research;(g ) to suppor t in i t iat ives aimed at preventing job losses; and(h) to perform any other prescri bed function.Finances of Product iv ity South Africa

2 6 M . Productivity South Africa is financed from(a ) money voted by Par l iament for th is purpose;(b ) income earned f rom serv ices rendered by i t ;(c ) grants or donations made to i t ; and(d ) money received f rom any o ther source.Regula t ions regard ing workplace product iv i ty and compet i t iveness

2 6 N . The Minis ter may, af ter consult ing Productiv ity South Afr ica, bynotice in the Gazette make regulat ions regarding any improvements inworkplace productiv ity and competi t iveness which i t is necessary orexpedient to prescr ibe in order to enable Productiv ity South Afr ica toperform its functions under th is A ct / ' .

Subst itut ion of sect ion 28 of Act 97 of 199812. The following section is substituted for section 28 of the principal Act:

"Use of money in Fund28 . (1) The money in the Fund may be used only for the projects

identified in the national skills development strategy as national prioritiesor for such other projects related to the achievement of the purposes of thisAct as the Director-General determines .


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A c t N o . 3 7 , 2 0 0 8 S K I L L S D E V E L O P M E N T A M E N D M E N T A C T, 2 0 08

(2 ) [A max imum o f two per cent o f the] The money al located to theFund in terms of section %(3)(a) of the Skil ls Development Levies Act maybe used to adminis ter the Fund with in a prescr ibed l im it ." .Subst itut ion of sect ion 29 of Act 97 of 1998

13. The following section is substituted for section 29 of the principal Act:"Contro l and adminis t ra t ion o f Fund

29 . (1) The Director-General is the accounting [officer] authority of theF u n d [ in terms of the Exchequer Act , 1975 (Act 66 of 1975)] ascontemplated by section 49(2)(b) of the Public Finance Management Actan d mu s t(a) contro l the Fund;(b) keep a proper record of all f inancial transactions, assets and liabilitiesof the Fund; [and](c ) [as soon as possible after the end of each f inancial year, ending on

the prescr ibed da te , ] p rep are [accounts of the income andexpenditure of the Fund for the year and a balance sheet of it sassets and l iabil it ies as at the end of that year] annual financialstatements for the Fund in the prescribed form; and

(d) subject to the laws governing the public serv ice, appoin t the executiv eofficer of the Fund who will, upon such appointment, be in the employof the public serv ice.

(1 A) The Fund must be managed in accordance with the Public FinanceMan ag emen t Act .(2) Any m oney in the Fund not required for imm ediate use may be

invested in accordance with [ the Publ ic Inves tment Commiss ioner orwith a f inancial inst itut ion approved by the Minister] an in v es tmen tpolicy approved by the Director-General that complies with the requirements of the Public Finance Management Act and may be withdrawn whenrequired .

(3) Any u nex pen ded ba lanc e in the Fun d at the end of the financial yearmust be carried forward to the next financial year as a credit to the Fund.(4) The [accounts and ba lance sheet ] annual financial statementscontemplated in subsection (\)(c) must be submitted by the Director-General to the National Skil ls Author i ty for information as soon as possib leaf ter they have been prepared ." .

Amendment of sect ion 36 of Act 97 of 199814 . Section 36 of the pr incipal Act is hereby a mend ed by the inser t ion af ter paragraph

(r) of the fo llowing paragraphs:"(VA) any matter con cerning the adm inis trat ion of apprenticesh ips or o therqualif icat ions in terms of any repealed Act, including , but not l imited to ,

issu ing duplicate cer t if icates ;( rB) provid ing for the es tablishment of sk il ls development forums in respect ofeach provincial office and specifying the operation, composition andfunctions of the forums;" .


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A ct N o . 3 7 , 2 0 0 8 S K I L L S D E V E L O P M E N T A M E N D M E N T A C T , 2 0 08

Amendment of sect ion 37 of Act 97 of 199815 . Section 37 is amended by the addit ion of the fo llowing subsection:

"(3) Schedule 2 to the pr incipal Act is hereby repealed , except for i tem4 A . " .Insert ion of Sche dules 2A, 3 and 4 in Act 97 of 1998

16 . The fo llowing Schedule is hereby inser ted in the pr incipal Act af ter Schedule 2 :' S C H E D U L E 2 A

T R A N S I T I O N A L P R O V I S I O N S :S K I L L S D E V E L O P M E N T A M E N D M E N T A C T , 20 0 8

Definit ions1. In th is Schedule' A m e n d m e n t A c t ' mean s th e Sk i l l s Dev e lo p men t Amen d men t Act ,2 0 0 8 ;' E T Q A ' means an Education and Train ing Quali ty Assurance Bodyaccredited in terms of section 5(lX


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Convers ion o f contract s o f apprent icesh ip in force a t commencementof Act3 . (1) Despite i tem 2 , an employer and an apprentice who are par ty to a

contract of apprenticeship in force at the commencement of th is Act mayconclude a learnership agreement in accordanc e with the form prescr ibed interm s of section 17(3) of the Ac t, subject to the follow ing:(a) The train ing provider must be a par ty to the learnership agreement,unless the train ing element of the apprenticeship has been completed;(b) the learnership agreement may only be terminated in terms of section17(4);(c) the employer and apprentice must , in addit ion , conclude a writ tencontract of employment;(d) the apprentice is deem ed to be a learner contem plated in section 18(2)

of the Act and must be employed on terms and condit ions ofemployment that are no less favourable than those that are applicablein terms of section 18(1) of the Act;

(e) paragraphs (c) and (d) do not apply to an apprentice who was alreadyemployed by the employer pr ior to the commencement of the contractof apprenticeship .

Trades deemed to be l isted4 . Any trade which immediately pr ior to the commencement of th is Act

was designated , or deemed to have been design ated , in terms of section 13(1) of the Ma npow er Train ing Act, is deem ed to have been l is ted in terms ofsection 26Bfa) of the Amendment Act.Coming in to opera t ion o f QCTO

5. The QCTO comes in to operation on a date determined by the Minis terin the Gazette.SAQA accred i ta t ion o f SETA ETQAs

6. (1) Unti l such t ime as the QCTO delegates powers and functions to aSETA in te rms o f C h ap te r 6 B of th e Act , a SETA ETQ A w i l l -fa) remain accredited by SA QA ;(b) continue to perform all ETQA functions prescr ibed by the SouthAfr ican Qualif icat ions Author i ty Act; and(c) have any matter concerning the performance of ETQA functions by a

SETA dealt with in terms of the South Afr ican Qualif icat ionsAuthor i ty Act.(2) The accreditat ion of any education and sk il ls development provider

by a SETA ETQA remains in ef fect unti l the accreditat ion(a) lapses;(b) is withdrawn by the SETA ETQA; or(c) is withdrawn in terms of regulat ions made under section 26J of theAct .

National Product iv ity Inst itute7. (1) On a date determined by the Minister by notice in the Gazette, al l

the assets , r ights , l iab il i t ies and obligations of the National Productiv ityInsti tu te , a com pany incorporated in terms of section 21 of the Com panie sAct, 1973 (Act No. 61 of 1973) , reg is trat ion number 75/04742/08, aretransferred to Prod uctivit y South Africa.


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(2) The National Productiv ity Inst i tu te must thereaf ter be wound up in Iaccordance with i ts ar t icles of associat ion .

S C H E D U L E 3C O M P O S I T I O N A N D C O N S T I T U T I O N O F Q C T O

Compos i t ion o f QCTO1.(1) The QC TO consis ts of 16 me mbe rs appoin ted by the Minis ter , as

fo llows:(a) The chairperson;(b) the executive officer of the SAQA;(c ) the executive officer of the National Skills Authority;(d) the executive officer of the QCTO;(e ) the executive d irector of the Higher Education Quali ty Committee

established in terms of section 7 of the Higher Education Act, 1997(Act No . 101 of 1997);

(f) the chief executive officer of Umalusi established in terms of section 4of the General and Fur ther Education and Train ing Quali ty AssuranceAct, 2001 (Act No. 58 of 2001) ;

(g) two memb er s n o min a ted b y NED LA C to rep resen t o rg an ised lab o u r ;(h) two memb er s n o min a ted b y NEDLAC to r ep resen t o rg an ised b u s i

ness;(i) two memb er s n o min a ted b y NEDLAC to r ep resen t o rg an isa t io n s o f

community and development in teres ts ;(j) one members nominated by the Minis ter of Education to represent the

in terests of public education and train ing providers ;(k ) one member nominated by the pr ivate providers of education and

train ing to represent the in teres ts of pr ivate education and train ingproviders ; and

(I) two addit ional members to represent the in teres ts of the State .(2) Members of the QCTO contemplated by sub- i tems (1) (a ) and (g) to

(I) hold office for a period of five years and are eligible for reappointmentupon expiry of their terms of office, but may not serve more than twoconsecutive terms of office.Const i tu t ion o f QCTO

2. The Minis ter must approve the consti tu t ion of the QCTO, whichsubject to th is Act(a) must provide for

(i) the es tablishm ent and functioning of com mitt ees , including anex ecu t iv e co mmit tee ;

( i i) ru les for conve ning and conductin g of mee tings of the QC TOand i ts committees , including the quorum required for and theminutes to be kept of such meetings;(iii) the voting rights of the different m em be rs and the ma nne r inwhich decis ions are to be taken by the QCTO and i tsc o m m i t t e e s ;

( iv) the circum stances and manner in whic h a me mb er of theQCTO may be removed f rom off ice;

(v) the proc edu re for the filling of vaca ncies on the QC TO ;(vi) a code of conduct for the me mbe rs of the QCT O;

(vii) the circum stances and man ner in which the Mini s ter maydissolve the QCTO and appoint an adminis trator on atemporary basis to perform its functions;

(v ii i) the determination through arb itrat ion of any d ispute conce rning the interpretation or application of the constitution;

( ix) the procedure for amen ding the consti tu t ion;(x) the procedure for advis ing the Minis ter on regulat ion s to be

made in terms of section 26; and


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(b) may provide for any other matter necessary for the performance of the Ifunctions of the QCTO.S C H E D U L E 4

C O M P O S I T I O N A N D C O N S T I T U T I O N O F P R O D U C T I V I T YS O U T H A F R I C AComposit ion of Product iv ity South Africa

1 . (1) Productiv ity South Afr ica consis ts of seven memb ers appoin ted bythe Minis ter , as fo llows:(a) The chairperson;(b) two memb er s n o min a ted b y NEDLAC to r ep resen t o rg an ised lab o u r ;(c ) two memb er s n o min a ted b y NEDLAC to r ep resen t o rg an ised b u s i

ness; and(d) two members to represent the government.

(2) M em ber s of Produ ctivity South Africa hold office for a perio d of fiveyears and are eligible for reappointment upon expiry of their terms of office,but may not serve more than two consecutive terms of office.Const itut ion of Product iv ity South Africa

2. The Minis ter must approve the consti tu t ion of Productiv ity SouthAfrica, which subject to this Act(a ) must provide for

(i) the es tablishmen t and functioning of com mitt ees , including anex ecu t iv e co mmit tee ;

( i i) ru les for convening and conducting of mee tings of Productivi ty South Afr ica and i ts committees , including the quorumrequired for and the minutes to be kept of those meetings;

(iii) the voting rights of the different m em be rs and the ma nne r inwhich decis ions are to be taken by Productiv ity South Afr icaand i ts committees;

( iv) the circumstan ces and man ner in which a me mbe r of Produc tivity South Africa ma y be rem ove d from office;(v) the proce dure for the filling of vac anc ies on Produ ctivity South

Africa;(v i) a code of conduct for the memb ers of Productiv ity SouthAfrica;

(v ii) the circum stances and man ner in which the Minis ter maydissolve Productiv ity South Afr ica and appoin t an ad minis trator on a temporary basis to perform its functions;

(v ii i) the determination through arb itrat ion of any d ispute conce rning the in terpretat ion or application of the consti tu t ion;( ix) the procedure for ame nding the consti tu t ion;(x) f inancial ar rangem ents , including bank accou nts , investm entof surp lus money, annual budgets , annual repor ts , f inancial

s tatements and annual audits ;(xi) the appo intm ent of an exe cuti ve officer and such otheremployees necessary for the ef fective performance of the

functions of Productiv ity South Afr ica by i ts members ,including the determination of their terms and condit ions ofemp lo y men t ; an d

(b) may provide for any other matter necessary for the performance of thefunctions of Productiv ity South Afr ica." .


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Amendment of sect ion 65 of Act 75 of 199717. Section 65 of the Basic Condit ions of Em ploym ent Act, 199 7, is hereby amen ded

by the substitution for subsection (1) of the following subsection:"(1) In order to monitor and enforce compliance with an employment law, alabour inspector may, without warrant or notice, at any reasonable t ime, en ter

(a) any workplace or any o ther p lace where an employer carr ies on businessor keeps employment records , that is not a home;(b) any premises used for [or training] skil ls development in terms of the[Manpower Training Act , 1981 (Act No. 56 of 1981)] Skil ls Development Act, 1998 (Act No 97 of 1998); or

(c) an y [private employment off ice registered under sect ion 15 of theGuidance and Placement Act , 1981 (Act No. 62 of 1981)] place atwhich any person provides or purpor ts to provide any employmentserv ices as def ined in terms of the Skil ls Develop men t Act, 1998 (Act No97 of 1998) ." .

Am endm ent o f Arran geme nt o f Sections o f Act 97 o f 199818 . The Arrangement of Sections af ter the Long t i t le of the pr incipal Act is hereby

a m e n d e d (a) by the substitution for " C H A P T E R 6 I N S T I T U T I O N I N D E P A R T M E N TO F L A B O U R A N D R E G U L A T I O N O F P R I V A TE E M P L O Y M E N TS E R V IC E S A G E N C I E S " of the fo llowing:

" C H A P T E R 6I N S T I T U T I O N I N D E P A R T M E N T O F L A B O U R A N D

E M P L O Y M E N T S E R V I C E S " ;(b) by the insertion after "Chapter 6" of the fo llowing Chapters :

" C H A P T E R 6 AA R T I S A N D E V E L O P M E N T

26A. National ar t isan moderation body2 6 B . Listing of trades26C . Nati onal register of artisans26D. Trade tes ts

C H A P T E R 6 BS K I L L S D E V E L O P M E N T I N S T IT U T E S

26E. Skil ls develop men t ins t i tu tesC H A P T E R 6 C

Q U A L I T Y C O U N C I L F O R T R A D E S O C C U P A T I O N S26F. Policy on occupational s tandards and qualif icat ions

26G. Establishm ent of QC TO2 6 H. Fu n c t io n s o f QC T O

261. Delegation of functions26J . Regulation s regarding occupational s tandards and qualif icat ions


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C H A P T E R 6 DW O R K P L A C E P R O D U C T I V I T Y A N D C O M P E T I T I V E N E S S

26K. Establishm ent of Productiv ity South Afr ica26L. Function s of Productiv ity South Afr ica

26M . Financ es of Productiv ity South Afr ica26N. Regula tions regarding workpla ce productiv ity and com peti t iven e s s " .

Short t i t le and da te o f commencement20 . This Act is cal led the Skil ls Development Amendment Act, 2008, and comes in to

operation on a date determined by the Minis ter of Labour by notice in the Gazette.

Skill Dev Act

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