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7 Key changes to labour broker relationships you MUST know

by , 23 November 2015
Labour brokers provide companies with labour and services. And if you use them, then it's vital to know that several changes, under the Basic Conditions of Employment Act and the Labour Relations Act have been made to labour broker relationships.

These have been in effect since April 2015. And so, because of its relatively recent amendments, it's important for you to ensure that you're complying with them.

Here are 7 very important changes which have been made to labour broker relationship.


When a labour broker employs a worker who provides a temporary service to you, that worker is the labour broker's employee – not yours.


The temporary service can ONLY be for a period of 3 months, unless you can provide solid reasons for the period being longer.


If the labour broker provides services for you for longer than 3 months, then the worker will now be considered an employee of yours. This is, of course, dependent on if you can justify why he's not your employee.


Last year, Government implemented over 70 changes to three of SA's most crucial labour Acts.
Among them were:
•             When and how to issue employees with a fixed-term contract.
•             Unfair discrimination and your employees' pay cheque.
•             Steps you MUST take before you recruit a non-South African citizen.
•             Labour brokers and the only time you can use them.
•             And so many more.
How sure are you your HR department's current processes aren't a lawsuit waiting to happen?
How certain are you that one small oversight won't end up costing your company R2.7 million in fines?
How confident are you that you won't land at the CCMA defending a case for following a faulty HR process?
Don't take a chance when you don't have to.
Be compliant with all these changes and more when you claim your 30 day risk-free membership to The Practical Guide to Human Resources Management today.

If the labour-broker employee works for you for longer than 3 months, and you decide to end his employment, this will be seen as a termination of employment which, in essence, constitutes a dismissal.


If a labour broker employee works for you for less than 3 months, or even as a substitute for one of your temporarily absent employees, then she's performing a temporary service for you. In other words, the labour broker is the employer in this situation, not you.


In the above-mentioned situation, whereby a temporary service is provided, the contract must clearly provide for a definite, and limited, period of service. This will prevent temporary workers from working for clients for indefinite and extended periods of time.


The work that labour-broker employees provide is regarded as a 'temporary service'. This is according to collective bargaining agreements which are made in sectoral determinations, bargaining councils or notices from the Minister of Labour. But if there is any contradiction between the 3, then the collective agreements will take precedence.
The above-mentioned changes only apply to employees who earn below the minimum earnings threshold, which is currently set at R205 433,30. 

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