Tag archives: Labour brokers

Service Provider or Labour Broker? How to tell the difference

In January 2019 the Labour Court decided a contractor,that was appointed in terms of a service level agreement, operated as an independent service provider not as a labour broker. The distinction is critical because the deeming provisions in section 198A of the Labour Relations Act, 1995 (LRA), applies to labour brokers but not to independent service providers. In circumstances where the service is rendered by a labour broker, the employees involved in rendering the service may be deemed to be in the client’s employ if the employees earn less than R205 433.30 a year and rendered services to … Continue Reading

Controversial amendments to the LRA enacted

The controversial Labour Relations Amendment Act was assented to by the President on 17 August 2014.

With the exception of section 198(4F), the amendments will come into effect on a date to be fixed by proclamation.

The Amendment Act places significant restrictions on the use of fixed term contracts and labour brokers, provides for additional organisational rights for minority trade unions and limits participation in pickets.

The Amendment Act has been criticised by business, noting concerns about a loss of flexibility and the failure to enact an effective mechanism to curtail violent strike action.  Some commentators have even suggested that … Continue Reading

Labour broking: the long wait is over

After over two years before Parliament the Labour Relations Amendment Bill was finally adopted by the National Assembly yesterday after having been passed by 248 votes to 81.

The Bill looks somewhat different from the initial Labour Relations Amendment Bill, 2010. Employers should take note of the following most notable modifications:

  • Labour broking has not been banned but is  highly limited; labour brokers may only place their employees at their clients for a period not exceeding three months. If the three month period is exceeded then the employee will be regarded as employed by the client.
  • Employees earning below the
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