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Do you use labour brokers? If so, then this is for you

by , 24 September 2015
Labour laws use the term 'temporary employment services' (TESs) to describe labour brokers.
They are any people who, for reward, procure for, or provide a client with other people who:

· Render services to, or work for, the client; and
· Receive pay from the temporary employment service.

So, are you using labour brokers to get temporary workers? If so, then you need to be aware of these eight obligations, risks and liabilities that come with using them:

1.       Your labour broker mustn't unfairly dismiss an employee or subject them to unfair labour practices. You must report any misconduct the employee commits and ask the labour broker to deal with it.

2.       You must ensure the labour broker doesn't pay below the minimum wages. He must also give the workers minimum conditions of employment. If he doesn't, you'll BOTH be liable.
3.       Sign a contract with the labour broker BEFORE using him. Include a clause in the contract saying the labour broker will carry out his legal duties and that you're indemnified against any harm if he doesn't.
4.       Never tell your labour broker to do anything that will amount to unfair discrimination. If you do, you'll be liable.

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.
5.       If the employees work under your supervision, then you'll need to carry out the same health and safety measures, under the Occupational Health and Safety Act (OHSA), as you do for your own employees.
6.       If one of the employees is hurt because of your negligence, he can claim from you.
7.       You must withhold or deduct the employee's tax from the money paid to the labour broker. Unless he has a valid exemption certificate from the South African Revenue Service (SARS).
8.       Ensure that you know if and when an employee becomes your deemed employee and ensure processes are in place to comply with laws on deemed employees.
So, there are eight obligations, risks and liabilities that come from using labour brokers. Make sure you're aware of them.

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