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


Constitution of the Financial and Accounting Services Sector Education and Training Authority (FASSET)

1. Legal Entity


1.1 Scope of Fasset

The scope of coverage of Fasset is the financial and accounting sector, as determined by the Minister of Labour in terms of section 9(2) of the Skills Development Act, 1998 (Act No. 97 of 1998) as amended, read with government gazette No 21012 of the 20th March 2000. The Minister's determination is reproduced in Schedule 1 of this Constitution.


1.2 Purpose for the establishment of Fasset

The purpose for which Fasset has been established is to provide an institutional framework to devise and implement national, sectoral and workplace strategies that are aligned with the objectives of national economic and social development. These strategies will be developed within the context of:

Supporting the development and improvement of skills development interventions;

Providing an assurance of quality in education and training;

Enhancing access to learning opportunities;

Encouraging active employer participation;

Supporting the objectives of the Employment Equity Act; and

Addressing the needs of the South African labour market including that of: Employers; Workers; and Small, medium and micro enterprises.


1.3 Legal status

Fasset is a body corporate, established in accordance with Section 9 of the Skills Development Act No. 97 of 1998 ("the Act") and having all the powers granted to it in terms of the Act.


1.4 Interpretation

In this constitution, unless consistent with the context or subject matter:

Chapter, clause and paragraph headings are for purposes of reference only and shall not be used in the interpretation of this constitution;


Unless the context clearly indicates a contrary intention, words connoting: one gender include a reference to the other gender; the singular includes the plural and vice versa; natural persons include legal persons and vice versa.


Schedules to the constitution will be deemed to form part of the constitution


1.5 Definitions

The following expressions shall bear the meanings assigned to them below and cognate expressions shall bear corresponding meanings:



means the Skills Development Act, 1998 (Act No. 97 of 1998), as amended;



means any person elected or appointed to chair any meeting of Fasset or its committees;


"chief executive officer''

means the person appointed by the management board as the chief executive officer of Fasset;



means any permanent committee, ad hoc committee or sub committee established by the management board or committees of Fasset;



means clear specifications or criteria for successful performance of a particular activity or function and may include knowledge, skills, abilities, personal characteristics and values;



means the employers registered with and paying their levies to Fasset, government departments and trade unions representing employees within the sector and employee organizations whose constituencies carry on their business activities or are employed, as the case may be, in the sector;



means those persons and organizations that make up the constituency;


"designated groups"

means black people, women and people with disabilities;


"education and training standards"

means registered statements of desired education and training outcomes and their associated assessment criteria, as defined in Section 1 of the SAQA Act;



means any person, excluding an independent contractor, who works for another person in the sector or for the State Department within the sector and who receives, or is entitled to receive, any remuneration or any other person who in any manner assists in carrying on or conducting the business of an employer within the sector;



means an employer as defined in the fourth schedule to the Income Tax Act, No. 58 of 1962



means the Executive Committee, appointed by the management board and chaired by the Chairperson of the management board, which will be charged with overseeing the business plans and implementation of strategies of Fasset;



means the Sector Education and Training Authority for Finance, Accounting, Management Consulting and other Financial Services;


"general meeting"

means a meeting of all constituents of Fasset;


"the legislation"

means the legislation referred to in 1.10;


"levy disbursement"

means the funds disbursed to employers in accordance with the levy disbursement policies of Fasset, the Skills Development Levies Act, No. 9 of 1999, the PFMA and the Act;



means the process by which a person gains the competencies required to perform a particular function or activity;


"majority vote"

means a two-thirds vote of the representatives present at a meeting of the management board, executive committee or working committee of Fasset at which a quorum is present;


"management board"

and direction of Fasset, in accordance with the requirements of the Act, the PFMA and the needs of all stakeholders;



means the Minister of Labour,



means the Public Finance Management Act, 1999 (Act No. 1 of 1999) as amended;


"professional bodies"

means associations representing the interests of professional persons, employees and learners, employer organizations and within professions, that are constituents of this sector;


"public entity"

means a public entity as defined in the PFMA;



means the requisite number of constituents who must be present at any meeting, for decisions of that meeting to have any binding effect;



means any person elected or appointed to serve on the management board or a committee of Fasset;


"SAQA Act"

means the South African Qualifications Authority Act 1995, (Act No. 58 of 1995);



means the Finance, Accounting, Management Consulting and other Financial Services as defined in the Minister's Notice GN. 265, GG 21012 of 20 March 2000, as amended;



means a Sector Education and Training Authority;



means a constituent, as well as any other party that has an interest in Fasset, including but not limited to, the Department of Labour and workers;


"unemployed person"

means any person who would fall into the definition of the economically active population who is unable to find employment in the formal or informal sector, and



means an employee, an unemployed person and a work-seeker within the sector.


1.6 Dispute resolution

Any party to a dispute concerning the interpretation or application of this constitution may refer the dispute to the Chief Executive Officer of Fasset.


The referral must: be in writing; adequately describe the dispute; and be delivered to every other party to the dispute by the party referring the dispute.


The Chief Executive Officer must, as soon as reasonably practicable, refer the dispute to EXCO, who must endeavour to resolve the dispute by conciliation within 30 days of referral of the dispute.


If EXCO fails to resolve the dispute within 30 days of its referral, then any party to the dispute may refer it for arbitration by an arbitrator appointed in terms of the Arbitration Act, 1965 (Act 42 of 1965).


The arbitrator must be agreed to by the parties to the dispute with the approval of the chairperson of Fasset or, failing such agreement or approval, by an arbitrator appointed by the chairperson of Fasset.


The arbitrator must first attempt to conciliate the dispute. If conciliation is not possible, then the arbitrator must arbitrate the dispute.


The arbitrator must conduct the arbitration in a manner that he or she considers appropriate in order to determine the dispute fairly and quickly, but must deal with the substantial merits of the dispute with the minimum of legal formality.


Within 14 days of conclusion of the arbitration proceedings: the arbitrator must issue a signed arbitration award with reasons; and the chief executive officer must provide a copy of the award to every party to the dispute.


The arbitration award is final and binding on the parties to the dispute.


The costs of the arbitration must be borne equally by the parties to the dispute. The arbitrator may however make a different and appropriate award of costs if: a party to the dispute, without reasonable cause, refuses or fails to attend the arbitration or unduly delays arbitration proceedings; or the arbitrator is of the view that a party pursuing or resisting the dispute did so vexatiously or frivolously or had no reasonable prospect of succeeding.


An arbitrator may, at his or her own initiative or as a result of an application by an affected party, vary or rescind an award: erroneously sought or made in the absence of any party affected by the award; in which there is ambiguity, or any obvious error or omission, but only to the extent of the ambiguity, error or omission; or granted as a result of a mistake common to the parties to the proceedings.


1.7 Place of business

Fasset chooses as its place of business and its domicilium citandi et executandi suite A-306, 3rd Floor, Eva Office Park, Corner Beyers Naude & Judges Avenue, Blackheath, South Africa or such other address as may be substituted by notice given to all constituents.


1.8 Legal personality

Fasset is a public entity listed in Part A of Schedule 3 of the PFMA and will:

have a separate legal identity and existence distinct from its office bearers, constituents and representatives;

hold property and assets distinct from its office bearers, constituents and representatives;

not be entitled to carry on any business which has for its object the acquisition of gain for itself or its office bearers, representatives or constituents;

be required to use its funds solely for the objects for which it has been established or for investment in terms of an investment policy as approved by the National Treasury;

be entitled to raise funds, generate income and charge fees in accordance with any relevant legislation;

be capable at law of suing and being sued, of investing funds and of operating banking and other accounts, of entering into contracts and doing or performing such other acts or things as body corporates may do or perform, subject to the provisions of this constitution and the Act;

continue to exist, and have perpetual succession, notwithstanding changes in its office bearers, constituents or representatives; and

be dissolved in accordance with the requirements of the Act, should dissolution become necessary for any reason.


1.9 Limitation of liability

A constituent or representative of Fasset does not incur any civil liability because of doing or failing to do something which such constituent or representative may do or is required to do in terms of the Act, provided that person has acted without negligence and in good faith.


Fasset does not incur any civil liability because a constituent, representative or employee of Fasset has taken any action or failed to take any action under or in terms of the Act, and in failing to take that action or in taking that action such person acted without negligence and in good faith.


1.10 Legislative framework

The constitution must be read in conjunction with the legislation detailed below, as may be amended from time to time, and any other pertinent legislation that exists or may come into existence:

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

Skills Development Levies Act, 1999 (Act No. 9 of 1999);

South African Qualifications Authority Act, 1995 (Act No. 58 of 1995);

Public Finance Management Act, 1999 (Act No. 1 of 1999) as amended;


regulations, guidelines and government notices published from time to time in support or clarification of the legislation listed above.


1.11 Process of amending the constitution

The procedures for amending the constitution are documented in Section 3 of Fasset's Rules of Procedure, attached as Schedule 3. These procedures are defined in accordance with the Act and the regulations published in Government Gazette No. 24035 of 8 November 2002, governing the amendments to SETA constitutions.


1.12 Scope and coverage

Fasset shall have jurisdiction, as determined by the Minister in terms of section 9(2) of the Act, read in conjunction with Government Gazette No. 21012 of 20 March 2000, as amended, over all training and learning and all aspects thereof in the sector, and as may be amended by the Minister from time to time.


Any undertakings having common interests or associations with the sector may participate voluntarily in the activities of Fasset under such conditions as may be determined by the management board.