The sector education and training authority (Seta) has six months to revert to the previously legislated skills funding regime after certain aspects of the 2012 Seta Grant Regulations were set aside by the Labour Court, declaring them invalid, effective March 2016.

This was according to Business Unity South Africa (Busa), which took to the Labour Court following the Department of Higher Education and Training’s move to implement new regulations that reduced the mandatory skills grant payable to employers from 50% to 20% and a “sweeping mechanism” that required Seta's to pay over all unspent funds to the National Skills Fund.

This meant that funds could be spent on national skills initiatives that were not related to workplace training.

“The court found that Higher Education [and Training Minister Blade Nzimande] had failed to consult the National Skills Authority as required by law. The court also ruled that the Minister had acted irrationally by reducing the mandatory grant to employers as set out in the Skills Development Act,” Busa said in a statement on Monday.

Further, Busa noted that the Labour Court declared that the Minister had exceeded his powers by prescribing that surplus Seta funds be moved to the National Skills Fund.