impact of legislation on businesses

Question 1

why were these laws implemented

Answer 1

to redress the impact of past injustices and lack of equity amongst people

Question 2

what is the nature of skills development act

Answer 2

it is to create:
a national skills fund which funds skills programmes
sectional education and training authorities
a national skills authority which advises the minister of labour

Question 3

purpose of the act

Answer 3

develop skills necessary to improve competitiveness in the economy
encourage job creation
increase the investment in skills development
provide facilities for skills development in training programmes and learnerships

Question 4

impact the skills development act on businesses

Answer 4

all businesses are responsible for providing suitable training for their employees in respect to their line of business
it improves productivity
it allows skilled workers to increase proficiency
it is time consuming
costly ; as large business employers have to pay levies for these programmes
increases admin work for HR

Question 5

Advantages of the skills development act

Answer 5

makes more people employable
reduces unemployment
allows people to start small businesses
The STEA pays unemployed people in the programmes an allowance

Question 6

what is the purpose of the national skills development levies act

Answer 6

it provides for a national skills development levy where businesses with a wage bill of R500 000 P/A have to contribute 1% of their wage bill to the national skills fund.
This levy is not deducted from the the employees wages but it is contributed by the employer

Question 7

what happens to the levy

Answer 7

80% goes to SETAS and 20% goes to the national skills fund

Question 8

purpose of the National Skills Fund

Answer 8

the National skills fund is used to fund projects identified by the National Skills Development Strategy as a national priority

Question 9

what are SETAs

Answer 9

organisations that represent a certain industry and organize training and education programmes in that industry

Question 10

what is the role of SETAs

Answer 10

organize training and education programmes
organize and fund skills development programmes
develop a strategy to ensure that the programmes are successful
develop a skills plan for the sector.

Question 11

it is the controlling plan for skills development; this plan guides the work of SETAs and the use of the National Skills Fund

Answer 11

The National Skills Development Strategy

Question 12

what is the aim of the NSD ?

Answer 12

It aims to:
give quality training
provide skills that will uplift rural areas
increase the participation of formerly disadvantaged people in the economy
set up partnerships between SETAs, employers and educational institutions
provides skills that will help people develop small enterprises

Question 13

purpose of the BEE

Answer 13

Th e BEE is a policy that aims to redress the injustices of inequalities of the past
The BEE focuses on ownership and management of large businesses by black people by black people owning shares and holding management positions in these businesses

Question 14

state the aim / nature of the BBBEE Act

Answer 14

the BBBEE aims to distribute wealth and income  fairly amongst SA population to reduce income and poverty and allow more formerly disadvantaged people play a greater role in contributing to the economy  
it aims to do this by: 
the development of business 
equity in employment and skills 
preferential procurement

Question 15

when the state only gives contracts and tenders to businesses that comply with the BBBEE codes

Answer 15

preferential procurement

Question 16

measures the compliance of a business with the BBBEE

Answer 16

The BBE scorecard

Question 17

name and explain the elements part of the BBE scorecard that a business needs to comply with in order to have compliance with the BBBEE

Answer 17

A business needs to ensure that:
ownership and management of the company is fair meaning it comprises of different people from different backgrounds
it offers skills development for its workers
there is equity in the employment
it has preferential procurement
it contributes to socio-economic development

Question 18

discuss the positives impacts of the Act on businesses that comply with the act

Answer 18

• they can get tenders from the government
• employees can improve their skills
• disadvantaged and qualified workers can be considered for higher positions
• the businesses play a greater role in socio- economic development
• public company shares prices can increase
• development of new companies is encouraged

Question 19

discuss the negative impacts of the act on businesses that do not comply with the Act

Answer 19

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