Refuting the dual employer argument, the constitutional court first noted that, retaining the labour broker as an employer would frustrate the intentions of the amendments of 2014, to bring about. The international labour organization ilo categorises subcontracting into job contracting the contractor offers certain services or equipment and labour only contracting only labourers are provided. The best 10 labour brokers 2020 africa african advice. Temporary employment whats changed for employers and. Numsa wins landmark constitutional court decision on labour. In south africa, employees taken on through labour brokers are classified as informal.
The debate centres on what the legislature intended by introducing the socalled deeming clause in the labour relations act lra. Constitutional court gives the final word on labour brokers. The legal framework for the protection of employees of labour brokers in south africa. He suggested that instead of an outright ban on labour brokerage, additional controls should be added in regulation of the existing labour brokerage sector. Furthermore, the temporary nature of the particular. At this time, slavery was introduced as the first form of labour broking venter et al. In this situation the employee is employed by the labour broker and not by the company he is working for. The case related to the ongoing debate about who should be regarded as the employer of workers placed in jobs by labour brokers under certain legal circumstances. Labour brokering is a form of outsourcing practiced in south africa and formerly practiced in namibia, where it was known as labour hire in which companies contract labour brokers to provide them with casual labour. Labour research service south africa, november 2012, 3. The labour broker, the employee and the client pdf. The best 10 labour brokers in johannesburg 2020 africa. Amended by electronic communications security pty ltd act 68 of 2002 from 28 feb 2003. Labour court judgments 2010 all judgments are in pdf format and require acrobat reader to open.
Labour broking is currently practiced in south africa. The trade union movement, government and organised business are presently debating the future regulation of this industry. Aug 22, 2012 labour broking is a form of outsourcing in which companies contract labour brokers to provide them with casual labour. Labouronly contracting is the dominant form of subcontracting in south africa. This placed us at enormous risk as our vehicles had to be loaded, stock had to be received and packed down and stores required stock replenishments. Labour brokers are different from recruitment agencies in that labour brokers handle almost all aspects of the workers employment including interviews, recruitment, hr, admin. In discussing the reasons for such enormous growth with labour brokers and those companies utilising their services, it is evident that there are two main reasons for this growth. This document was indeed sloppy and left most people with more questions than answers regarding th. The dabate on labour brokers african journals online. Employment services bill on labour brokers gets goahead article sapa 12 nov 20 the employment services bill, intended to regulate labour brokers, has been given the green light in the.
Is the worker employed by the client or the labour broker. The tes industry alone turns over more than r40 billion annually, contributing significantly to government revenue with tax and vat. Service and enforcement of orders of labour court 164. Our experience with labour brokers is that they are extremely abusive and expose workers to low wages and terrible working conditions.
University of cape town,faculty of law,department of commercial law. The legal framework for the protection of employees of. Labour relations amendment act6 of 2014 2014 amendments. A south african perspective 1 september 2001 there has been a considerable growth of temporary employment services, or labour brokers, as they are more colloquially known, in south africa over the past five years. Lra, which would force labour brokers to register with the. Jul 27, 2018 for us as numsa this judgment is certainly a major step in the battle against banning labour brokers totally, said hlubimajola.
The international labour organization ilo categorises subcontracting into job contracting the contractor offers certain services or equipment and labouronly contracting only labourers are provided. To ban or not to ban labour brokers in south africa. On 26 july 2018 the constitutional court handed down its longawaited judgment in the assign services matter, providing the final say on the correct interpretation of section 198a3b of the labour relations act the lra the section provides that an employee who earns less than the earnings threshold which is currently r205 433 per annum and who is contracted through a temporary. Labour brokers claim the constitutional courts longawaited ruling on the socalled deeming provision is practically meaningless and wont change a thing.
Constitutional court ruling on labour brokers a victory. Amended by labour relations act 66 of 1995 from 28 apr 2004. During the period of september 2012 our labour supply embarked on a labour strike and as a result we lost the bulk of our labour within 24 hours. A significant contributing factor is the everincreasing shortage of skilled people who are primarily responsible to ensure continuous economic growth. Numsa opposes assign services application for leave to appeal the labour appeal court judgment. This chapter briefly outlines what the researcher proposes to do in this study. We view this as the first step in ending the labour brokering system in south africa. Labour broking, the way forward by jan du toit since the release of the proposed amendment of the labour relations act in 2010 much debate took place about the future of labour brokers in south africa. Our experience with labour brokers is that they are extremely abusive and expose workers to low wages and. The trade union movement, government and organised business are presently debating the future regulation.
Rules board for labour courts and rules for labour court 160. Amended by intelligence services act 65 of 2002 20 feb 2003. Unit 6 industrial and labour relations challenges in the. Labour broking may also be defined as a form of subcontracting, where definite services are procured from an outside supplier i. Jul 27, 2018 we view this as the first step in ending the labour brokering system in south africa. Pdf the flourishing nature of labour brokerage in south africa. The uncertainty of employment enables labour brokers to appropriate rent and to profit from worker effort in the long run.
The landmark ruling will change the nature of labour broking in sa. The future of labour brokers in south africa is a controversial debate that fluctuates from the total banning to the regulation thereof. Namibia has experimented with, and failed, to place a. Labour broking is a form of outsourcing in which companies contract labour brokers to provide them with casual labour. The impact of changes in labour broking on an integrated. Pdf south africa currently allows labour broking although this area of commerce is problematic. In south africa, the use of labour brokers has increased exponentially, because it provides employers with an opportunity to circumvent the onerous provisions of constitutional, international and statutory law that seek to protect workers. Your guide to labour law in south africa labour guide. Our warehouse is situated in isipingo and during the.
Numsa wins landmark constitutional court decision on. Legal experts weigh in on labour broker ruling fin24. Labour brokers add no value to the south african economy tes companies work to actively reduce unemployment not only with job placement, but also by increasing the longterm employability of workers. Jul 26, 2018 this is a major victory for casual and temporary workers who are abused by labour brokers. Pdf temporary employment services labour brokers in south. In the case of lad brokers pty ltd v mandla 2002 6 sa 43 lac, the court held that the worker was the employee of the labour broker but the labour broker temporary employment service and the client are jointly and severally liable in case of any. Labour brokers and the triangular employment relationship 2005 26.
A leading provider of temporary staffing in south africa. Aquila labour brokers was established in 2005, and are proud to have been a supplier to our industry for the last 12 years. Labour relations act 66 of 1995 south african government. Official site with labour legislation, policy documents, and news. Recent amendments to the labour relations act lra dictate that clients of labour brokers have to hire contractors who earn. New court ruling will change the nature of labour broking.
Labour broking is not a new concept in south africa it dates back to the colonization that has since taken place in 1652 when the settlers arrived at cape of good hope for the first time. The influence of labour brokering practices on employment. Since the release of the proposed amendment of the labour relations act in 2010 much debate took place about the future of labour brokers in south africa this document was indeed sloppy and left most people with more questions than answers regarding the future of labour brokers and the use of fixed term contracts. The namibian supreme court of appeal has held that the banning of labour brokers would not be appropriate, as it would not be permissible to ban labour brokering on the basis of proportionality and rationality. You are in za please select the language you prefer. Labour brokers are different from recruitment agencies in that labour brokers handle almost all aspects of the workers. If youre looking to hire labour brokers in south africa, you can speak to one of our consultants to find out more about how we.
Amended by general intelligence laws amendment act 52 of 2003 from 28 feb 2003. In conclusion, the mentioned ruling does not mean there is no place for labour brokers in the south african labour market, but rather restricts the application of their services to the set parameters determined by the amended labour relations act and by the guidelines given by the constitutional court. Even though the client supervises and controls the worker, the labour broker would remain the employer and be responsible for paying the worker. South africas labour history can be traced back to 1652 and the beginning of colonialism. Jul 16, 2017 this is subject to a number of exceptions, but likely covers a majority of labour broker staff, generally estimated to total between 600 000 and 1 million people in south africa. Assign services supplies labour to krost in the region of 22 to 40 workers at any one time, depending on the projects awarded to krost, to supplement krost s salaried employees. Pdf temporary employment services labour brokers in. Perhaps the most highly contested and difficult question. More recently, south african labour legislation has undergone some changes, specifically to. Concourt ruling deals a blow to labour brokers 26 july 2018 11. Jul 26, 2018 concourt ruling deals a blow to labour brokers 26 july 2018 11. Roleplayers in the south african labour fraternity over the past number of months.
Unfortunately, the new rule could be interpreted in two opposite ways. Temporary employment services labour brokers in south africa and namibia article pdf available june 2017 with 1,180 reads how we measure reads. Temporary employment services labour brokers in south. Labour only contracting is the dominant form of subcontracting in south africa. Namibia has experimented with, and failed, to place a legislative ban on labour broking. He commented that the namibian example namibia had recently abolished labour brokers was not comparable to the situation in south africa, as the namibian economy was much smaller. New court ruling will change the nature of labour broking in sa.
Statements and comments like the above influenced our strategic planing as this. Jul 27, 2018 the case related to the ongoing debate about who should be regarded as the employer of workers placed in jobs by labour brokers under certain legal circumstances. This is subject to a number of exceptions, but likely covers a majority of labour broker staff, generally estimated to total between 600 000 and 1 million people in south africa. This is a major victory for casual and temporary workers who are abused by labour brokers. The study covers the temporary agency work industry known as labour broking in south africa as well as the recruitment and placement of individuals in permanent or temporary employment. Constitutional court determines the fate of labour brokers the deeming provision in s198a3bi of the labour relations act lra provides that an employee of a temporary employment service tes not performing a temporary service for the client is deemed to be the employee of that client and the client is deemed. If youre looking to hire labour brokers in south africa, you can speak to one of our consultants to find out more about how we provide unsurpassed staff solutions. The regulation of terms and conditions of employment for.
In south africa, the use of labour brokers has increased exponentially. Category employment conditions sub category employment agreements document type articles filename the labour broker, the employee art. Concourt ruling on labour broker workers is meaningless. Proceedings of labour court to be carried on in open court 161. There has been a considerable growth of temporary employment services, or labour brokers, as they are more colloquially known, in south africa over the past five years. This includes an introduction of the subject matter, a brief synopsis of labour broking in south africa and the problem areas that are addressed in this research. South africa currently allows labour broking although this area of commerce is problematic. In south africa and namibia, we experience a situation where employers over the years have tried to go around the limitations on shading of labour by making use of labour brokers. In an attempt to remedy the lack of proper regulation of labour brokers, the south african government has amended the labour relations act 66 of 1995, especially s 198.
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