LWO joins hands with MSD
Moulder Skills Development (MSD) has become one of the leading skills development specialists over the past 10 years through building long-term relationships that are affordable, with their clients. Over the years they have identified certain elements that can pose a business risk to their clients, such as compliance with labour law. Often employers’ contracts are not adequate or even legal – this compelled MSD to find a solution for their clients that is honest, professional and affordable and will ensure that employers comply with legislation and have support with regards to unforeseeable events and disputes in the workplace. MSD can also assist employers with compliance with the Employment Equity Act.
“The LWO impressed me from the first meeting and the Bible that lay on the boardroom table testified to the organisation’s values that was also written large against the wall – integrity, honesty and excellent service.
One of the biggest risks for any business today, is compliance with labour law. When aspects such as general compliance, documentation and the correct procedures are in place and followed, there is very little that can go wrong. That’s why co-operation between specialists is so crucial to ensure that the best results are achieved in every aspect of the business.”
– James Moulder, Owner (Moulder Skills Development)
MSD was established in 2010 and specialises in skills development in the workplace.
All MSD’s skills developers are registered at all relevant SETAs. They identified a great need in the small to medium business sector for honest, affordable skills development. With the costs that are usually associated with training and administration, as well as the time it requires, most small businesses do not have the finances or ability to appoint someone full-time to pay attention to these aspects.
By outsourcing this to MSD, the employer ensures that documentation and training requirements are constantly monitored, evaluated, updated and aligned with labour law. They handle all correspondence, documentation and submission of the workplace skills development plans on behalf of their clients. MSD can assist any employer in South Africa as many services are done online and via e-mail.
Most employers are not aware that if their business pays more than R500 000.00 per year to any form of remuneration (including salaries, bonuses, dividends, etc.), the business must register for Skills Development Levies (SDL) at SARS. SDL is 1% of the total remuneration and is paid out to SARS monthly in conjunction with PAYE and UIF. This is required in terms of the Skills Development Act, Act No 97 of 1998.
Legislation also requires employers to submit a skills development plan (workplace skills plan) to the relevant SETA by April each year to whom the tariff was paid out, in which it is declared what training was done by the employer during the previous year. This plan must be drafted by a registered Skills Development Facilitator.
TAKE NOTE: Most employers are under the impression that paying SDL every month is the only requirement, but it is the employer’s responsibility to submit this plan. However, legislation also states that the employer is entitled to claim 20% of his SDL if this plan has been submitted. MSD ensures that employers draft and submit the plan correctly and timeously and that monies due are paid to the employer.
- MSD is registered with all 21 SETAs
- All MSD Skills Development Facilitators are trained by EDTPSETA and NQF level 5
- MSD has clients in each SETA and therefore has the relevant experience with regards to the systems and requirements
- LWO members receive a R1 000.00 discount on registration with MSD, as well as preferential rates
- MSD is BB-BEE exempt and therefore level 4 compliant
- MSD has a 100% submission rate for the past nine years
- The Employment Equity Act (“EEA”) applies to all employers, but a “designated employer” (who meets the minimum requirements) has additional responsibilities.
- A “designated employer” is any employer with 50 or more employees OR an annual turnover of:
- R6 million – Agriculture
- R22.5 million – Mining and Quarrying
- R30 million – Manufacturing
- R30 million – Electricity, Gas and Water
- R15 million – Construction
- R45 million – Retail, Motor trade and Repair services
- R75 million – Wholesale trade, Commercial agents and Allied trades
- R15 million – Catering, Accommodation and other Trade
- R30 million – Transport, Storage and Communications
- R30 million – Finance and Business services
- R15 million – Community, Special and Personal services
Should a “designated employer” fail to comply with these obligations, the fine for the first offence is:
- R1.5 million or 10% of the employer’s annual turnover (whichever is the greatest); and/or
- 10 years imprisonment
A “designated employer” has additional obligations and must take care to ensure the following is in place:
- Appoint a Senior Employment Equity Manager to develop, monitor and implement the Employment Equity Plan (see step 7 below). This appointment must be a permanent employee and report directly to the CEO of the business.
- Collect information – each employee must complete the EEA1 form confirming the employee’s race, gender, nationality and any disabilities where applicable.
- Create employment equity awareness with regards to all employees – all employees should be made aware of and informed with regards to the objectives, content and application of the EEA, its regulations and Code of good practice.
- Establish an Employment Equity Committee to hold regular consultations with regards to compliance with the EEA. This committee must be representative of both designated and non-designated employees and all occupational levels. Trade unions in the workplace must also be involved and form part of consultation.
- Hold regular (at least quarterly) consultations to discuss the conducting of an analysis, development of a plan and submitting of the reports to the Department of Labour. These consultations must be structured and recorded via agendas, attendance registers and minutes of meetings held.
- Draft an analysis (EEA12) which must include the following:
- Policies and procedures to address the under-representation of designated groups and a lack of diversity in the workplace
- Practices and factors to promote employment equity
- Under-representation of designated groups and occupational levels
- Draft an Employment Equity Plan (EEA13) which must state the following:
- Objectives for each year (the plan is valid between one to five years)
- Affirmative action measures
- Numerical goals for achieving equitable representation
- A timetable for each year
- Internal monitoring and evaluation procedures, including internal dispute resolution mechanisms
- Identified persons to monitor and implement the plan
- Submit Employment Equity reports (EEA2 and EEA4) on progress made with regards to the implementation of the plan. The reporting period is a twelve month period (we recommend using the employer’s financial period). Reports can be submitted electronically on the Department of Labour‘s website before 15 January 2021.
