Fasset is offering a cash grant for the employment of a previously disadvantaged learner on a Fasset learnership. This grant will be paid PER LEARNER and is limited to a specific number of learners per organisation, depending on the size of the company.

The background to the development of this grant, the process for application for this grant, the criteria for being awarded the grant and guidelines for application can be found under Learnership Grant.

Tax Deduction

Employers receive a tax deduction ranging from R25 000 to R30 000 as finalised in legislation in February 2006. Further details can be found under Tax Deduction.

Previously the amount of the allowance was dependent upon the employee’s remuneration and whether the employee was employed prior to entering into the learnership.
The allowance now consists of a commencement allowance of R30 000 and a completion allowance of R30 000 per learnership. As an encouragement and compensation for employers who develop learners with disabilities, a R50 000 commencement and completion allowance are deductible in place of the normal R30 000 allowance. These allowances are prorated if the learnership is for a period of less than a year.
Previously if a learnership agreement was terminated prior to its completion the employer was subject to a recoupment of all previously deducted allowances. Under the new legislation, in order to take into account that there are frequently circumstances and market contributors outside of the employer’s control which would contribute towards termination of learnerships, this recoupment rule has been removed.
Learnerships that are cut short of the required full 12 months through termination of the agreement will qualify for a pro rata amount of the commencement allowance. Where learnerships are transferred to the employee’s new employer, both the previous and the new employer will be entitled to a pro rata amount of the commencement allowance based on the number of months the employee was under their respective employ.
Multi-year learnerships have been promoted through the introduction of a commencement allowance to be allowed in respect of each successive year of the learnership, and not just one allowance at the true commencement of the learnership. The completion allowance for multi-year learnerships is calculated by multiplying the completion amount of R30 000 by the number of full 12 months periods of the learnership.
Multi-year learnerships will now be reaping the same ultimate benefits as a series of one year learnerships. The benefit for multi-year learnerships was previously restricted to multi-year apprenticeships. However, in terms of the amendments, all registered multi-year learnerships (two years or longer) will qualify for the multiple completion allowance.

SDL Calculation

The salaries of registered learners are excluded from the SDL calculation. You need the official confirmation letter as proof for SARS.

Strategic Cash Grant

Fasset employers can claim back 10% of their SDL for Year 6 (1 April 2005 – 31 March 2006) if they have signed learners on to Learnership Agreements. This includes learnerships registered with other Setas. Please refer to the Learnership Resources and Guidelines section for details and also note that the Learnership Agreements are registered with Fasset if the employer pays their SDL to Fasset.

 CPE for Learners

In addition to the technical skills addressed by Learnerships, Fasset has identified that learners require additional formal training in soft skills. CPE for Learners (CPELs) training sessions aim to improve the soft skills of learners and all other interested employees in the sector. The courses are therefore typically designed at a level suitable for the post-graduate employee just completing the 3 year practical portion of the SAICA CA Learnership, but are always applicable across all other sectors in which Fasset functions. Senior employees are very welcome to attend the CPE for Learners training sessions but should bear this in mind when signing onto these courses.

These learner CPEs are run twice a year and further details can be found under CPEs and Events.

UIF Update: How is UIF applied to registered Leaners?

1 April 2002
The UIF Act (I April 2002) indicated that an employer and his/her employee were not previously liable for payment of UIF contributions in the case of an employee receiving remuneration in terms of a learnership agreement registered under the Skills Development Act 1998.

At that date, the interpretation of this clause had not been clarified in terms of whether it applied to all learners or only to previously unemployed learners 18(2).

1 May 2004
The following amendment is as per a " Notice to Employers" from SARS dated 24/05/04:

With effect from 1 May 2004 only employees in terms of a learnership contract contemplated in section 18(2) of the Skills Development Levies Act, 1998, and their employers are not liable for payment of UIF contributions. Section 18(2) refers to employees that had not been in the employ of the employer at the time of the signing of a learnership agreement and a contract of service was still to be concluded by the learner and employer (i.e. previously unemployed learners).

Therefore, in the event of an employer concluding a learnership agreement with an existing employee and of the service agreement not falling within the provisions of section 18(2) of the Skills Levies Act, 1998, such employee and employer shall be liable for payment of UIF contributions.