An alternative to hiring workers through a labour broker
Many employers have taken a keen interest in labour brokers. And for obvious reasons. They can provide staff that:
· Are cheaper than ordinary staff;
· Are more specialised in various areas than your ordinary employees; and
· Allow for more flexibility as your employment requirements change.
But with all this hype, a very interesting question regarding labour brokers still comes up. And it goes as follows:
'Is there an alternative to hiring workers directly through a labour broker?'
Keep reading to find out the answer...
Be warned! The Labour Relations Amendment Act changes the way you treat fixed-term and temporary employees!
Is there an alternative to hiring workers through a labour broker?
The answer is yes. You can directly hire a worker without having to go through a labour broker. And the way to do this is by using a fixed-term contract.
But remember that if you hire a worker on a fixed-term contract, and he earns below the earnings threshold, then he'll be considered permanent
if he works for you for more than three months. This is according to the new Labour Relations Amendment Act (LRAA).
However, you can justify a fixed-term contract, which is longer than three months, if you can prove one of the following four reasons:
You're replacing another employee who is temporarily away from work.
If there is an unexpected increase in workload that will not last more than 12 months;
You're hiring a student or recent graduate in order for him to gain work experience; and
You wish to hire a fixed-term employee for a specific project that will last for a specific period of time. In other words, the time of the employment is definite.
*To learn more on how to effectively manage fixed-term contracts, page over to Chapter F 01
in your Practical Guide to Human Resources Management
handbook, or Chapter F 04
in your Labour Law for Managers