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Four useful tips when using labour brokers

by , 07 June 2016
Four useful tips when using labour brokersLabour brokers are very beneficial as they can provide you with specialised staff at a cheaper rate than your ordinary employees.

But in order for you to make the most out of labour brokers, you have to know all the fine details on how they operate. And this includes knowing your responsibilities in the business relationship.

So to help you do just that, here are four useful tips you should know when using labour brokers...


Be warned! The Labour Relations Amendment Act changes the way you treat fixed-term and temporary employees!

Click here to learn more...


Four useful tips you should know when using labour brokers...

TIP#1: The employee's work ends or the contract with the labour broker ends

In a situation like this, the employee reverts back to the labour broker, but you don't have to end the worker's employment because you don't employ him.

NOTE: Some labour brokers will ask you to provide severance packages if a worker's position should become redundant at some stage. This is simply a contractual arrangement between you and the labour broker. It won't change the legal position of who exactly the employer is. The labour broker will remain liable to the worker for severance pay.

TIP#2: Employee misconduct

You must report any misconduct, by a worker, to the labour broker as soon as possible, because it's the labour broker's duty, as the worker's employer, to discipline her.

REMEMBER: You must provide evidence of the misconduct.

TIP#3: Employee benefits

Workers here are entitled to all legal employee benefits such as annual leave, sick leave, maternity leave, etc. But it's the labour broker's responsibility to provide these benefits. 

NOTE: This is, of course, unless they're independent contractors.

TIP#4: Employee status

By using a labour broker, you can avoid compliance with some labour legislation that applies to an employer-employee relationship.

HOWEVER: It's very important to note that a worker, from a labour broker, will be considered an employee of yours if you hire her for longer than three months. This is very important for you to remember as the entire relationship between you and the employee will change, and so your responsibilities to her will be based around a standard employer-employee relationship.

*To learn more, page over to Chapter L 10 in your Practical Guide to Human Resources Management handbook.

Or if you don't already have it, click here to order your copy today. 

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