Mandatory Grant Application Guidelines

Maximising skills development
for a sustainable future
Mandatory Grant Presentation
January 2015
New Grant Regulations
• Came into effect on 1 April 2013
• Reduced the mandatory grant allocation to 20%
• Increased the discretionary allocation available for strategic sector
skills development
20% 20%
National Skills
Pre 1 April 2013
Post 1 April 2013
Objective of Skills Development
• To create a workforce
– empowered with the necessary skills, knowledge and recognized
– enabled to access decent employment
– qualified to contribute to the organisation’s productivity and
competitiveness in the global market
– capable to adapt to changing technologies and labour market
• To address the needs of the unemployed
– increased participation of youth, women, disabled and other
disadvantaged sections
– empowered with the necessary skills, knowledge and recognized
– increased employability (in industry and self-employment)
– increased placement and work experience
Objective of Skills Development
– According to the International Labour Organization (ILO)
“Skill development is of key importance in stimulating a
sustainable development process and can make a
contribution in facilitating the transition from an
informal to formal economy. It is also essential to
address the opportunities and challenges to meet new
demands of changing economies and new technologies
in the context of globalization.”
Benefits of Mandatory Grants Process
• Opportunity to
– Formalise and obtain buy-in into skills development
– Uncover untapped talents and skills at company level
– Access funds for training and development of employees
– Provide training and work placement opportunities for
unemployed learners and graduates
– Participate in the FP&M sector drive to address scarce and
critical skills needs
– Provide input into national skills planning strategy
– Provide information to the FP&M SETA on:
• The geographic profile
• The demographic profile
• The current and predicted skills needs and gaps
• Current skills development practices
• Further interventions required
― Enable the SETA to
• Render support
• Enhance Sector Skills Planning &
research initiatives.
Mandatory Grant Criteria
A levy paying employer claiming a mandatory grant must
• meet the eligibility criteria for the payment of a
mandatory grant
An eligible employer • has registered for skills development levies;
• has paid the levies in the prescribed manner;
• has submitted a WSP and ATR within the prescribed
timeframes that contributes to the relevant SETA SSP
• has submitted an Annual Training Report, demonstrating
some alignment to the previous year’s Workplace Skills
Plan and PIVOTAL Report
Mandatory Grant Criteria
• has provided evidence that the WSP and ATR have been
subjected to consultation with the recognised trade unions
(medium/large companies) eg. Labour sign-off, Committee
Membership List, Minutes of Meeting
• It is the responsibility of employer to ensure that the correct levy
number is quoted on applications
• FP&M SETA must be informed in writing of mergers, acquisitions
or rationalizations SETA within 14 days of the changes
• Failure to inform the FP&M SETA before the submission deadline
will render the submission invalid and therefore not approved
Cluster Skills Planning Process (CSPP)
• The SETA has identified the need to enable SMME companies in the
FP&M sector to participate in the skills development process.
• Many SMMEs do not possess the infrastructure or the skills to –
• undertake skills analysis of their workforce,
• to develop and submit mandatory grant applications and
• to manage the process of up skilling their workforces.
• However, SMMEs have to participate in the skills development
process in order to contribute to the long term sustainability
and growth of the companies
• Unique process has been developed to enable SMMEs to
become involved in the formal mandatory grant submission
Cluster Skills Planning Process (CSPP)
• The parties involved in the CSPP are as follows:
• The FP&M SETA;
• The Lead Organisations;
• The SMME companies that form the core of each cluster.
• The roles and responsibilities are as follows:
• The SETA will:
• Authorise, implement, monitor and maintain the CSPP;
• Process both mandatory and discretionary grants due to the
cluster as required;
• Quality assure the training delivered to the cluster.
Cluster Skills Planning Process (CSPP)
• The Lead Organisation will:
• Be a levy paying employer or constituent employer
organisation in the same sub-sector as the cluster
companies and cannot be a training provider;
• Undertake a needs analysis in each of the cluster
• Compile and submit a WSP for each of the cluster
companies online via the FP&M SETA MIS System;
• Set up separate bank account and utilise its bank account
details in each of the mandatory grant applications;
• Manage all mandatory grants paid to the cluster members;
Cluster Skills Planning Process (CSPP)
• Source training providers, implement the required training
and pay the service provider;
• Ensure the quality of the training provided;
• Keep required records for monitoring and reporting
purposes and report to the SETA on training implemented;
• Be entitled to submit a discretionary grant application on
behalf of the cluster.
Cluster Skills Planning Process (CSPP)
• The cluster member (the SMME company) will:
• Agree to become a member of the cluster and sign the
outsourcing agreement;
• Be registered to pay the skills development levy to FP&M
SETA and maintain up to date levy payments;
• Operate in the same sub-sector as the Lead Organisation;
• Participate in the needs analysis process undertaken by the
Lead Organisation;
• Agree that the Lead Organisation is permitted to submit a
mandatory grant application on its behalf and sign-off on
the compiled mandatory grant application prior to
Cluster Skills Planning Process (CSPP)
• Agree that any mandatory grants due to the company be
paid into the Lead Organisation’s bank account;
• Agree that the Lead Organisation will source training
providers, implement the required training and pay the
service providers on behalf of the cluster;
• Participate fully in the process, particularly by ensuring
employees are released for training as required.
• Nature of Training
• The learner shall receive training on the agreed programmes
listed in the Cluster WSP.
• All cluster training programmes will be delivered by accredited
service providers.
Cluster Skills Planning Process (CSPP)
• CSPP MoA (between SETA and Lead Organisation
• CSPP Outsourcing Agreement
• To be made available via the Skills Planning & Reporting
Manager’s Office from mid February
• Request from [email protected]
• All queries in this regard to be directed to Elmine Baumann at
the Durban Office (031-7024482)
Completing your Application
• ATR and Pivotal Report must reflect all training
– During April 2014 to March 2015
– Internally or Externally
• The WSP and Pivotal Plan must reflect all planned
– Internally or Externally
– Planned for April 2015 to March 2016
• Important to remember
– No Pivotal Plan/Report – no discretionary grants
for medium/large firms
Completing your Application
• The WSP/ATR must be duly authorised and
signed-off by:
– The Internal Training Committee / Skills Development
Committee including designated labour representative
• Firms employing 50 or more employees; or
– The Owner / Chief Executive and designated employee
• Firms employing less than 50 employees;
Submission of Application
• Deadline for submissions:
– on/or before 30 April 2015:
• Applications to be submitted electronically via MIS
• Authorisation page and proof banking details to be upload
to MIS and original documents to be hand delivered /
couriered to FP&M Regional Offices
• Assistance will be supplied to applicants unable to access
the MIS on request
• Requests for extension:
Anticipated delays – by 31 March 2015
• subject to approval by Board
Submission of Application
• Remember:
– New SDFs must register via online system ASAP – don’t
wait until April!
– Existing SDFs in renewal status
• Must re-activate by uploading CURRENT (not older than
3 months) SDF appointment letter for the 2015/16
financial year (per firm)
– SDFs must check banking details and must upload
CURRENT (not older than 3 months) stamped letter from
bank or cancelled cheque
• Upload on WSP & ATR Document Uploads for current
period (2015/2016)
– Files must be uploaded in pdf or
jpeg format
Submission of Application
• Remember:
– New requirement for medium/large firms
• Upload minutes of last training committee meeting
(proof of consultation)
– Totals to correspond when capturing information on
employment strength (organisation details) and
employment summary / provincial breakdown
– When using the bulk upload function, DO NOT change the
file name or the format of the worksheets
– Complete all sections of the application – tick “not
applicable” if eg. Adult Education and Training was not
– First consult the SDF Manual for instructions to complete
the application. If further assistance is required, contact
the FP&M SETA staff for assistance
– SAVE button is your FRIEND!
Submission of Application
• Remember:
– Please complete ALL forms
including the RESEARCH
• Important source of
information to assist with
development of sector skills
• Purpose:
 is to evaluate and monitor the training that was
• Firms must provide proof:
 copies of invoices paid towards training or
 certificates/statements of results or
 attendance registers
• Sample of firms will be visited
Pivotal Reporting
Skills Programmes
Work Integrated
Internships &
Work experience
Pivotal Reporting
• Types of PIVOTAL programmes
– Learnerships & apprenticeships
– Internships & work experience related to diploma /
certificate / vocational programmes offered at TVETs, HETs
and other accredited providers
– Professional Placements
– Credit bearing and NQF aligned skills programmes that may
cover either the theoretical, practical or workplace
component of a full qualification.
Scarce & Critical Skills
• The Scarce Skills List :
– Address skills development imperatives
– Ensure alignment to the HRDS
– Inform SETA funding and training facilitation according
to industry needs
– The list is available from the FP&M SETA website:
Organising Framework for Occupations
• Purpose
– To standardize reporting terminology (easier to
generate legislated reports)
– To report on skills demand and supply
–Inform the National Guide on occupations/
employment trends.
• The OFO is updated every two years
– FP&M SETA will be using Version 13 – Version 15
only available in February 2015
Benefits for the Industry
– OFO occupation titles are consistent and specific to the
output of a position
– The OFO occupational profiles inform position profiles
and job descriptions
– The OFO occupations specifications inform performance
– Labour market consistency when advertising vacancies,
ie. OFO codes linked to specific skill sets
– Link to Occupational Qualifications
Contact Details
• Johannesburg
– Pearl Ngiba – 011-403 1700
– [email protected]
• Head Office
– Elmine Baumann – 031-7024482
– [email protected]
• Cape Town
– Gloria Ngqinambi – 021-462 0057
– [email protected]
• Durban
– Helvy Mnisi – 031-7024482
– [email protected]
– Sbahle Ndlovu– 011-403 1700
– [email protected]
– Xoliswa Radebe – 011 – 403
– [email protected]
Any Questions?

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