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Stricter laws to regulate labour brokers

Mon, 07 Nov 2011 11:23

Peter Le Roux

With the first draft of the controversial labour law amendments expected to be released in the near future, a leading labour lawyer and speaker at this year’s LexisNexis Current Labour Law Seminars foresees the implementation of stricter labour policy that will regulate temporary employment services.

“There is a distinct possibility that no agreement will be reached by all parties concerned before the release of the draft, which means the decision to restrict the function of labour brokers will lie with the Minister of Labour. Even if an agreement is reached, or an ultimatum is presented, I expect that labour brokers will be regulated more strictly, rather than prohibited from operating.”

This is the view of Peter le Roux, Director of Brink Cohen le Roux Incorporated, Honorary Professor at the University of South Africa and speaker at this year’s countrywide LexisNexis Current Labour Law Seminars.

According to le Roux, in seeking to regulate rather than to prohibit labour brokers, concerns expressed by unions will be addressed by the new draft. These include; the terms and conditions of employment utilised by labour brokers on the employment of an individual; and ways and means to protect the job security of employees engaged by labour brokers.

“Some of the possibilities that will be considered are the limitations on the period of time that employees can be placed with a labour broker’s client, the possibility of the client being held jointly and severally liable for the actions of the labour broker, and measures to ensure that employees of labour brokers receive similar terms and conditions of employment to those that the client guarantees its own employees. Given the emphasis on job creation in current government policies, the Minster will undoubtedly also have to consider the potential impact of her proposals on job creation or job retentions,” le Roux added.

The latest Statistics South Africa quarterly labour force survey indicates that official unemployment has mushroomed to 25.7 percent, with 174 000 more individuals added to the list of the unemployed in the last three months. There has been concern from the private sector that the prohibition of labour brokers will not bode well for these numbers.

“The labour market’s failure in respect of jobs has sparked debate about the proposed labour law amendments. Labour brokers have argued persuasively that they play an important role in society as they provide an entrance point into the employment market. If their services are banned, there may be a further loss in jobs and an increase in costs to the employment sector,” le Roux warned.

This and other labour law changes are imminent with the first draft of proposed changes expected to be approved by the National Economic Development and Labour Council (Nedlac) later this month. This has been a hotly contested issue recently, with a stand off being reached between business and Congress of the South African Trade Unions (COSATU) in the drafting of these amendments. COSATU has pushed for labour brokerage to be banned, while government has proposed stricter measures in regulating temporary employment services.

Peter le Roux will cover this topic, the issue of atypical labour (any work other than permanent employment, such as overtime, flexi-time and contractual work), unfair dismissal and labour practices, collective bargaining, industrial action and employment equity at the 22nd LexisNexis Current Labour Law Seminars this month. Other speakers who will tackle these issues head on are Advocate Alec Freund and Adjunct Professor at the Institute of Development and Labour Law at the University of Cape Town, Clive Thompson.

Should the draft be released within the month, the Seminars will be one of the first opportunities to reflect on the consequences for labour practitioners. The LexisNexis Current Labour Law Seminars are an authoritative year-end review of labour law developments that will appeal to and affect HR managers, labour practitioners, lawyers, professional dispute resolvers and business leaders. It is also an opportunity to ascertain what the critical legal and labour issues will be for 2012.

The seminar programme will kick off in Cape Town and end with two sessions in Johannesburg. The dates are as follows:

• 16 November – Durban, Elangeli Hotel;
• 17 November – Port Elizabeth, NMMU Conference Centre;
• 18 November – Cape Town, Crystal Towers;
• 21 November – Johannesburg, Southern Sun Grayston Hotel and
• 22 November – Johannesburg, Gallagher Convention Centre

For more information on this year’s Current Labour Law Seminars, visit LexisNexisor contact the seminars team on (031) 268-3255.