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Skills Development Act, 1998 (Act No. 97 of 1998)

Chapter 3 : Sector Education and Training Authorities

9A. Amalgamation and dissolution of SETAs

 

(1) The Minister may, after consulting the National Skills Authority and the SETAs in question and subject to section 9(2), amalgamate two or more SETAs.

 

(2) The Minister must  provide a constitution contemplated in section 13 for the amalgamated SETA.

[Section 9A(2) amended by section 6(a) of Act No. 26 of 2011]

 

(3) The Minister must publish a notice in the Gazette containing—
(a) the date of the amalgamation;
(b) the sector for which the amalgamated SETA is established; and
(c) any other matter necessary to prescribe in order to establish the amalgamation.

 

(4) On the establishment of the amalgamated SETA, all assets, rights, liabilities and obligations of the amalgamating SETAs devolve upon and vest in the amalgamated SETA.

 

(5) The Minister may, after consulting the National Skills Authority and the SETA in question, dissolve a SETA if the SETA is unable to continue to perform its functions.

 

(6) The Minister must publish a notice in the Gazette
(a) containing the date of the dissolution of the SETA;
(b) setting out the manner in which, and by whom, the SETA is to be wound-up;
(c) setting out how any assets remaining after the winding-up of the SETA must be distributed; and
(d) providing for any other matter necessary for the dissolution and winding-up of the SETA in question.

 

(7) No transfer duty, stamp duty, fee or costs are payable in respect of the transfer of any assets, rights, liabilities or obligations between SETAs as contemplated in this section.

 

(8) The Registrar of Deeds on presentation of proof of any transfer of immovable property contemplated in this section must endorse the title deeds accordingly and make the entries in the relevant register that are necessary to register the transfer.

 

(9) Subject to sections 197 and 197A of the Labour Relations Act, 1995 (Act No. 66 of 1995), the contracts o employment between the SETAs (herein referred to as 'the old employer') and its employees are automatically transferred to the amalgamated single SETA (herein referred to as 'the new employer') as from the date of the amalgamation contemplated in subsection (1), but any redeployment of an employee as a consequence of the amalgamation or dissolution is subject to applicable labour legislation.

[Section 9A(9) inserted by section 6(b) of Act No. 26 of 2011]

 

(10) If two or more SETAs are amalgamated into a single SETA in terms of subsection (1), all the rights and obligations between the old employers and each employee at the time of the amalgamation continue in force as if they were rights and obligations between the new employer and each employee and anything done before the amalgamation by or in relation to the old employers must be regarded as having been done by or in relation to the new employer.

[Section 9A(10) inserted by section 6(b) of Act No. 26 of 2011]

 

(11) An amalgamation contemplated in subsection (1) does not interrupt the employee's continuity of employment.

[Section 9A(11) inserted by section 6(b) of Act No. 26 of 2011]

 

(12) The provisions of subsections (1) to (6) do not affect the liability of any person to be disciplined for, prosecuted for, convicted of and sentenced for any offence or misconduct.

[Section 9A(12) inserted by section 6(b) of Act No. 26 of 2011]

 

(13) An employee is subject to the disciplinary codes and rules applicable to the new single amalgamated SETA as from the date of the amalgamation contemplated in subsection (1), but if any enquiry into incapacity or any proceedings in respect of a charge of misconduct had been instituted or commenced against any employee before the date of the amalgamation, such enquiry or proceedings continue in terms of the codes and rules applicable to the relevant SETA immediately prior to the amalgamation.

[Section 9A(13) inserted by section 6(b) of Act No. 26 of 2011]

 

(14) Notwithstanding subsection (13), until the new single SETA has made disciplinary codes or rules, the disciplinary codes and rules of the respective old SETAs are applicable to employees.

[Section 9A(14) inserted by section 6(b) of Act No. 26 of 2011]

 

(15) Notwithstanding subsection (1), the old employer may undertake rationalisation of its workforce according to operational requirements in accordance with section 189 of the Labour Relations Act, 1995 (Act No. 66 of 1995), prior to the date of the amalgamation contemplated in subsection (1).

[Section 9A(15) inserted by section 6(b) of Act No. 26 of 2011]

 

[Section 9A inserted by section 5 of Act No. 31 of 2003]