Since the amendments to legislation, the use of labour brokers and temporary staff has been a source of much debate in the Human Resources industry. Business and Trade Unions have held very opposing views on the subject and argued strongly for their positions, but there has been no firm outcome. Until now.
A landmark judgement has finally been made that gives the parties something to work with. This judgement gives clarity to whether, when a client contracts with a labour broker for temporary staff, those temporary staff placed by the labour broker at the client site, will be employees of the labour broker and/or the client.
The relevant judgement is NUMSA vs Assign Services and others, which was handed down on 10 July 2017 by the Labour Appeal Court (LAC).
This ruling finally gives us a definitive interpretation of section 198A(3)(b) of the Labour Relations Act, 66 of 1995 (LRA) which section is also known as the "deeming provision". This is applicable to employees who earn below the prescribed earnings' threshold (aimed at protecting those deemed to be vulnerable employees).
The implication for labour brokers and clients is the following:
Any organisation making use of labour brokers would be well advised to assess the impact of this LAC ruling on their current business practices. If you would like further information or guidance with this, please make contact with us.
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