The 34-year-old brings a wealth of experience to the Sheffield-based side, having racked up over 450 senior appearances for the likes of Huddersfield, Rotherham and Bury.
A product of the Terriers academy, Skarz made 81 appearances for Huddersfield before joining Bury.
Following three years as a regular for the Shakers, he linked up with Rotherham and made 78 appearances for the Millers.
He dropped into the non-league pyramid in 2018 with a loan switch to FC Halifax Town, before joining Kettering Town on a permanent basis.
His most recent spell was with Golcar United, although he has now returned to South Yorkshire to agree terms with Hallam.
Skarz’s new club compete in the Northern Counties East League Premier Division, and have also completed the signing of ex-Sheffield Wednesday prospect Paulo Aguas.