President Zuma announced a new government training scheme in which R2.4 billion has been made available to companies to train staff, instead of laying them off. While it is voluntary, the social parties are strongly encouraged to participate in the training layoff as an alternative to retrenchment. A training layoff scheme has not been implemented before in South Africa in the current form. The key design elements of the scheme that have been agreed to by the social partners and as announced by the President on 5 August 2009, are as follows:
WHAT IS THE TRAINING LAY OFF SCHEME? - A temporary suspension of work used for training;
- Retention of the employment contract;
- Training to be flexible, but linked to the skills needs of the employer;
- A training allowance paid to the worker for a guaranteed 3 months;
- Employer only carries cost of social benefits e.g. pension/provident fund etc.
WHO QUALIFIES FOR THE TRAINING LAYOFF SCHEME? - Any employer that is under threat of closure due to the economic recession that is contemplating retrenchment of workers, but that may be sustainable through short-term relief;
- Any employer and worker(s) who reach an agreement on a training layoff scheme;
- Any worker earning below R180 000 per annum, who may be at risk of retrenchment due to the operational requirements of the company.
- Employers, after consultation with a trade union or affected workers, may combine the training layoff with short-time work arrangements.
- An award in this respect is made by the CCMA.
WHAT IS AVAILABLE FROM FOODBEV SETA?
FoodBev SETA will set aside funding for 300 skills programmes for the training layoff scheme and will undertake: - Payment of the cost of training
- Payment of an agreed training allowance following application for funds to the National Skills Fund
HOW IS THE SCHEME DELIVERED? - There is a single point of entry via the CCMA. All parties wishing to participate do so through the CCMA.
- The CCMA recommends participation in the scheme and facilitates the conclusion of a Training Layoff Agreement.
- FoodBev SETA facilitates the provision of training, fund training costs, apply to the DoL Committee for training allowances and transfer funds to employers.
- The DoL Committee considers the CCMA recommendation and pays training allowances to FoodBev SETA on application.
- Employers pay the training allowances to the affected workers.
Page Created: Tuesday, September 08, 2009
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