10 Facts you should know about the Training Layoff Scheme

  1. The Training Layoff Scheme provides an alternative to retrenchment whereby the employment relationship is suspended whilst employees go on a skills training programme
  2. The Training Layoff Scheme is entirely voluntary and is based upon an agreement between the employer and workers, whether unionized or not.
  3. The workers do not receive a salary during the training period but receive a training allowance amounting to 75% of their salary whilst on the training programme. The employer pays the employee’s basic social security contributions, such as UIF, death/disability cover and pension/provident funds. The employer may top-up the remaining 25% of the salary, if possible.
  4. The training programme may last up to six months and is coordinated by the relevant SETA.
  5. The employer needs to provide financial information to show that the business is in financial distress and this means that there must be at least a 10% decrease in turnover, orders or production output.
  6. Both the employer and the workers benefit from the Training Layoff Scheme, in that the employer saves on financial and other resources whilst the workers’ jobs are saved and they are able to gain new or improved skills.
  7. The choice of what training programme the workers go on is flexible, but should preferably relate to a skill that the employer may require.
  8. The employer should be in a position to benefit from temporary relief to turn the business around, reabsorbing the workers on conclusion of the Training Layoff period. Where appropriate, the period of the Training Layoff may be extended.
  9. The Training Layoff may be combined with short-time work for the employer if necessary and this would be combined with short-time work for the employer if necessary and this would be accommodated in the training programme.
  10. Parties can apply for the Training Layoff Scheme through the CCMA. Should you wish to find out more about how the Training Layoff Scheme can assist you to avoid retrenchment and assist your business and workers, you may contact the CCMA Western Cape, at 021 469 0111 or by e-mail at saben@ccma.org.za or nashiraa@ccma.org.za.