Skills Development & Employment Equity

Both skills development and employment equity are imperative for businesses to comply with Broad-Based Black Economic Empowerment (B-BBEE or BEE) scorecard requirements.

Skills Development in South Africa has become a strategic priority for businesses that wish to attain or retain an acceptable BEE level and also meet the requirements of the Skills Development Act. With the revised BEE scorecard, companies can earn maximum skills development points if they spend he required 3% or 6% of their annual payroll on skills development programmes such as SETA-accredited training initiatives (depending on the business category). The Skills Development Levy (SDL) is payable by employers in different sectors of the economy and serves to fund learning and skills development programmes for socially and economically marginalised groups in South Africa.

At SERR Synergy we will advise businesses in this regard and provide a Skills Development Facilitator service that assists businesses in claiming back portions of the Skills Development Levies already paid to SARS.

Our value-adding Skills Development service

(*also included in the STANDARD training product option)

In order to create synergy between the Skills Development Act, the Employment Equity Act and the BEE Codes, SERR Synergy will on behalf of the client:

  • ensure that your business is registered with the relevant SETA.
  • act as Skills Development Facilitator (SDF) for your business.
  • complete and submit an annual Workplace Skills Plan and Pivotal Plan.
  • complete and submit quarterly reports.
  • claim annually from your industry-specific SETA.
  • introduce accredited training programmes for the business to be presented by accredited training providers.
  • introduce skills development programmes such as learnerships and youth subsidies.
  • draft an Employment Equity Plan.
  • submit annual Employment Equity reports.

Benefits of Paying Skills Development Levy

If your company promotes learning and development in the workplace you will reap the rewards of a better skilled and more productive workforce.

By paying your SDLs monthly, you qualify for and have access to:

  • Skills development grants (mandatory and discretionary)
  • Substantial learnership tax rebates or allowances when you implement learnerships in your company.

The Workplace Skills Plan and BEE Codes

A prerequisite for recognising any points under Skills Development on your BEE Scorecard is the submission of the following:

  • Workplace Skills Plan (WSP),
  • Pivotal Plan
  • Annual Training Report (ATR) prior to the deadline in April each year.

Businesses will only receive points on their BEE scorecard once they prove that a Workplace Skills Plan was submitted.

The new amended BEE Codes further require that the WSP and Pivotal Plan be approved by the SETA prior to earning any points on the BEE scorecard.

Employment Equity

The Employment Equity Act requires businesses that employ more than 50 people or exceed certain thresholds as set per the specific industry to submit Employment Equity Reports to the Department of Labour before October of each year (or January if submitted electronically).

Businesses that fail to comply could potentially:

  • Face fines of up to R2,7 million or 10% of annual turnover. The Employment Equity Act creates various criminal offences and stipulates that no points may be awarded under the Employment Equity element for BEE purposes if an Employment Equity Report was not submitted.
  • Be deemed not to be an Empowering Supplier and as such will be unable to accumulate any points on the procurement element of their clients.

Download our Skills development & Employment equity services brochure.