Section 3 – Sector Education and Training Authorities

Establishment of SETA.

 

(1)  The Minister may, in the prescribed manner, establish a sector education and training authority with a constitution for any national economic sector.

 

(2)  The Minister must determine a discrete sector for the purposes of subsection (1) by reference to categories of employers and for the purposes of that determination take into account.

• The education and training needs of employers and employees that use similar materials, processes and technologies;
• Make similar products; or
• Render similar services;
• The potential of the proposed sector for coherent occupational structures and career pathing;
• The scope of any national strategies for economic growth and development;
• The organisational structures of the trade unions, employer organisations and government in closely related sectors;
• Any consensus that there may be between organised labour, organised employers and relevant government departments as to the definition of any sector; and
• The financial and organisational ability of the proposed sector to support a SETA.

 

(3)  On the establishment of a SETA, the Minister may provide assistance to the SETA to enable it to perform its functions.

 

(8)   Functions of SETA.

 

(1)  A SETA must-

• Develop a sector skills plan within the framework of the national skills development strategy;
• Implement its sector skills plan by-

–     Establishing learnerships;

–     Approving workplace skills plans;

–     Allocating grants in the prescribed manner to employers, education and training providers and workers; and

–     Monitoring education and training in the sector;

–     Promote learnerships by- identifying workplaces for practical work experience;

–     Supporting the development of learning materials;

–     Improving the facilitation of learning; and

–     Assisting in the conclusion of learnership agreements;

–     Register learnership agreements;

 

• Within a week from its establishment, apply to the South African Qualifications Authority for accreditation as a body contemplated in section 5 (1) (a) (ii) (bb) and must, within 18 months from the date of that application, be so accredited;
• Collect and disburse the skills development levies in its sector;
• Liaise with the National Skills Authority on- the national skills development policy;
• The national skills development strategy; and
• Its sector skills plan;
• Report to the Director-General on-

–     Its income and expenditure; and

–     The implementation of its sector skills plan;

 

• Liaise with the employment services of the Department and any education body established under any law regulating education in the Republic to improve information-

–     About employment opportunities; and

–     Between education and training providers and the labour market;

•  Appoint staff necessary for the performance of its functions; and
• Perform any other duties imposed by this Act or consistent with the purposes of this Act.

 

(2)   A SETA has-

• All such powers as are necessary to enable it to perform its duties referred to in subsection (1); and
• The other powers conferred on the SETA by this Act.

 

(3)   A SETA must perform its functions in accordance with this Act and its constitution.

 

(9)   Composition of SETA.

 

(1)   A SETA may consist only of members representing-

• Organised labour;
• Organised employers, including small business;
• Relevant government departments; and
• If the Minister, after consultation with the members referred to in paragraph (a), (b) and (c), considers it appropriate for the sector
• Any interested professional body;
• Any bargaining council with jurisdiction in the sector.

 

(10)    Chambers of SETA.

 

(1)   A SETA may, with the Minister’s approval, establish in its sector chambers.

(2)   A chamber so established must consist of an equal number of members representing employees and employers and may include such additional members as the SETA determines.

(3)   That chamber must perform those functions of the SETA as delegated to it in terms of the constitution of the SETA.

(4)   A chamber of a SETA is entitled to such percentage of the skills development levies collected in its jurisdiction as the Minister after consultation with the SETA determines.

 

(11)   Constitution of SETA.

 

(1)   For the purpose of the establishment of a SETA, the Minister must approve the constitution of the SETA.

(2)   The Minister may, after consultation with the SETA, amend its constitution in the prescribed manner.

(3)   Subject to this Act, the constitution of a SETA must specify–

• The trade unions, employer organisations and relevant government departments in the sector;
• The circumstances and manner in which a member of SETA may be replaced;
• The number of members to be appointed to the SETA, provided that the SETA must consist of an equal number of members representing employees and employers;
• The procedure for the replacement of a member of the SETA by the organisation that nominated that member;
• The circumstances and manner in which a member may be replaced by the SETA;
• The election of office-bearers by the members of the SETA and of persons to act during their absence or incapacity, their term of office and functions and the  circumstances and manner in which they may be replaced;
• The establishment and functioning of committees, including an executive committee;
• The rules for convening and conducting of meetings of the SETA and its chambers and committees, including the quorum required for and the minutes to be keCu of those meetings;
• The voting rights of the different members and the manner in which decisions are to be taken by the SETA and its chambers and committees;
• a Code of conduct for members of the SETA and its chambers;
• The appointment of an executive officer, and such other employees necessary for the effective performance of the functions of the SETA, by its members, including the determination of their terms and conditions of employment; and
• The determination through arbitration of any dispute concerning the interpretation or application of the constitution; and
• May provide for the delegation of powers and duties of the SETA to its members, chambers, committees and employees, provided that the SETA may impose conditions for the delegation, may not be divested of any power or duty by virtue of the delegation and may vary or set aside any decision made under any delegation; and
• Any other matter necessary for the performance of the functions of the SETA.

 

(12)   Finances of SETA.

 

(1)   A SETA is financed from-

• The skills development levies collected in its sector;
• Moneys paid to it from the National Skills Fund;
• Grants, donations and bequests made to it;
• Income earned on surplus moneys deposited or invested;
• Income earned on services rendered in the prescribed manner; and
• Money received from any other source.

 

(2)   The money received by a SETA must be paid into a banking account at any registered bank and may be invested only in-

• Savings accounts, permanent shares or fixed deposits in any registered bank or other financial institution;
• Internal registered stock contemplated in section 21 (1) of the Exchequer Act, 1975 (Act No. 66 of 1975);
• a Unit trust scheme managed by a company which has been registered as a management company in terms of section 4 or 30 of the Unit Trusts Control Act, 1981 (Act No. 54 of 1981); and
• Any other manner approved by the Minister.

 

(3)   The moneys received by a SETA may be used only in the prescribed manner and to fund the performance of its functions and pay for its administration within the prescribed limit.

 

(4)   In each financial year, ending on the prescribed date, every SETA must, at a time determined by the Minister, submit to the Minister a statement of the SETA’s estimated income and expenditure for the following financial year.

 

(5)   Every SETA must, in accordance with the standards of generally accused accounting practice-

• keep proper record of all its financial transactions, assets and liabilities;
• within six months after the end of each financial year, prepare accounts reflecting income and expenditure and a balance sheet showing its assets, liabilities and financial position as at the end of that financial year.

 

(6)   The Auditor-General must-

• Audit the accounts, financial statements and financial management of a SETA; and report on that audit to the SETA and to the Minister and in that report express an opinion as to whether the SETA has complied with the provisions of this Act, and its constitution, relating to financial matters.

 

(13)   Taking over administration of SETA.

 

(1)   The Minister may, after consultation with the National Skills Authority, by notice in the Gazette, direct the Director-General to appoint an administrator to take over the administration of a SETA if the Minister is of the opinion that-

• The SETA fails to perform its functions;
• There is mismanagement of its finances; or
• Its membership no longer substantially represents the composition contemplated in section 11.

 

(2)   In that notice the Minister-

• Must determine the powers and duties of the administrator appointed in terms of subsection (1);
• May suspend or replace one or more members of the SETA for a reason contemplated in subsection (1) (a), (b) or (c);
• May suspend the operation of the constitution of the SETA; and
• May, in the prescribed manner, transfer funds in the SETA’s bank account to the National Skills Fund.

 

(3)   If a notice is published in terms of subsection (1), the Minister may, to ensure that the SETA resumes the performance of its functions-

• Amend its constitution;
• Reinstate any of its members; and
• Withdraw or amend any provision of the notice contemplated in subsection (2) on such conditions as the Minister considers appropriate.