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Do you know your legal obligations to employees supplied to you by a labour broker?

by , 05 June 2015
Whenever you use employees from a labour broker, you must know that there are labour laws that apply to you. Pay attention to the fact that your obligations under the Labour Relations Act dictate how much the employee earns and, if he provides a 'temporary service', who his employer is.

Let's see how these obligations affect you:

• Employees who earn more than the minimum earnings threshold are employees of the labour broker. The labour broker is their employer.

The Minister of Labour sets the minimum earnings threshold and it changes from time to time. The current minimum earnings threshold is R205 433.30 per annum.

• We divide employees who earn below the earnings threshold  into two groups. Those who:

• Provide a 'temporary service'  to you. These  are employees of the labour broker and the labour broker is the employer.

• Don't perform a 'temporary service'. These are your employees and you're the employer (Section 198A(3)(b) – the deeming provision).

• Independent contractors aren't employees at all.

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Don't let the new Employment Equity amendments be the reason the DoL comes after you

There are still many employers who don't know exactly what the new 26 amendments are or even how to apply them.

If you employ more than 50 people or if your turnover is over the Employment Equity Act threshold for your industry, you need to comply with each and every one of them.

Click here to find out what you need to do to comply and avoid penalties from the DoL


Now, keep in mind that when you're the employer, the employment contract is indefinite, unless you have a recognised reason for a fixed-term appointment!

This can include the need for the fixed-term to be set out fully in the employee's contract. In this case, you need to make sure you agree with the labour broker to have formal employment contracts with the employees it supplies.

So these contracts must comply with all legal requirements.

Here's what a temporary service means:

• Mustn't be longer than three months;
• Is a substitute for one of your employees who's  absent temporarily; or
• Is in a specific category of work and for a specific period. You'll determine this by a collective agreement a bargaining council concludes, a sectoral determination or a notice the Minister of Labour publishes.

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