Grants and Pivital
On 3 December 2012, the SETA Grant Regulations were gazetted (Government Gazette no. 35940). These come into effect on 1 April 2013. There were many major substantial changes in the new regulations and these may have serious implications for skills development in our country.
Some of the main changes were:
- That the mandatory grant to employers is reduced from 50% to 20%.
- Any unclaimed mandatory grants must be transferred by the 15 August each financial year into the discretionary fund.
- Discretionary grants will mainly be paid for programmes offered by public FET colleges and universities.
As a result‚ these funds could be spent on national skills initiatives that were not related to workplace training.
Labour Court has set aside certain aspects of the 2012 Seta Grant Regulations‚ declaring them invalid!
The Labour Court’s judgment on Friday 21st of August 2015 declared both regulations to be invalid‚ and it set them aside with effect from March 31 2016.
The court found that Mr Nzimande had failed to consult the National Skills Authority as required by law.
The court also ruled that the minister had acted irrationally by reducing the mandatory grant to employers as set out in the Skills Development Act. The minister had exceeded his powers by prescribing that surplus Seta funds be moved to the National Skills Fund.
The minister was ordered to pay all costs of the application, and Seta’s now have a period of about six months to prepare for the return to the previous skills-funding regime effective in March 2016.
Busa said on Monday it viewed the judgment as a significant decision that reinforced the rule of law and that reasserted the importance of workplace skills training programmes in SA.
Every year each company submit (suppose to submit) their yearly statistics related to a) training completed, b) planned training for the next year and c) list of their scare and critical skills. We call these reports they submit: WSP (Workplace Skills Plan – 12 months planned training) and ATR (Anual Training Return – training completed the past 12 months).
The different SETA’s consolidate this information and then submits its top 10 priority skills (compiled from the submissions above). This list is referred to as the PIVOTAL list (short for Professional, Vocational Training and Academic Learning). This list is one of the sources of information used to inform the top 100 list of Occupations in High Demand that is published annually by the Department of Higher Education and Training. This is used differently by various stakeholders but its main purpose is to inform planning.
In short, the Pivotal List, also referred to as table consist out of the following:
1. Consist out of the Scare and Critical Skills of the SETA. (As identified by the companies/stakeholders in that sector)
2. Contribute to full qualifications. (With the aim of achieving a higher level, not just filling gaps.)
3. Additional criteria set by the different SETA’s in order to achieve their targets.