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The future of labour brokers is STILL not decided!
Labour Bulletin | 12 November, 2009 | Hot Topics:
Dear Reader
The buzz around labour brokers hasn’t died down...and we still don’t know what the outcome will be. Will the DoL ban labour brokers outright, or will it amend legislation to provide greater protection to employees hired through labour brokers? More importantly, how big of an issue is this for you in the context of the South African employment market?
Half a million people work in temporary jobs obtained through labour brokers!
The Finance Ministry recently admitted it hasn’t done any research on the implications of the proposed ban. In response to a question in Parliament, Treasury said it would be difficult to conduct such a study because of a lack of information on the actual number of workers put into jobs by labour brokers. Statistics SA indicated that labour brokers employed a mere 37 115 workers, and that was in 2007. This contrasts sharply with widely accepted industry estimates that half a million people work in temporary jobs obtained through labour brokers!
Despite widespread reports that Government wants an outright ban on labour brokers, a report submitted to NEDLAC doesn’t call for a ban but rather for amendments to both the LRA and the BCEA to afford greater protection to employees of labour brokers and employees in ‘non-standard’ employment. For example, it recommends employees of a labour broker should remain employees, even when they’re not working at a client. They should have a written contract and particulars for each placement made, and be protected against unfair dismissal if a client terminates their services.
The EEA may also be amended
It also suggests Government amends the Employment Equity Act to provide a remedy for employees if there’s discrimination in wages or working conditions between employees placed by a labour broker and direct employees. Another recommendation is that labour broker workers should be entitled to organisational and collective bargaining rights in relation to both the labour broker and the client.
But...these are just recommendations and nothing’s set in stone! We’ll continue to monitor developments in this arena and keep you up-to-date.
Until next month...
Susan Stelzner
Editor-in-chief
Labour Law for Managers Practical Handbook
Editors note
SarahJane Bosch
Labour Bulletin Editor
The Labour Bulletin team speaks to subscribers every week on landmark labour events and offer valuable and practical information from the Handbook, from questions and answers and from our experts that subscribers can use now to benefit their business.
