Are labour brokers banned in South Africa?

To simply ban labour brokers to satisfy the calls made by the trade unions represents a conundrum for the government. The amendments did not ban labour brokering, they instead strengthened the regulations to provide greater protection for workers placed in temporary employment services.

How do I become a Labour broker in South Africa?

These requirements include that the agency comply with all labour laws, has a verifiable physical business address, proof that the agency is registered with the Companies and Intellectual Property Commission (CIPC), proof of tax clearance certificate, proof that the agency is registered with a bargaining council, where …

What does a Labour broker do?

Labour brokers are different from recruitment agencies in that labour brokers handle almost all aspects of the worker’s employment (including interviews, recruitment, HR, admin, payroll, transport, etc.), whereas recruitment agencies are only responsible for sourcing candidates for employment. …

What are employment agencies or labour brokers?

Labour brokers often deal with workers who engage in manual, unskilled labour, while recruitment and employment agencies often search for candidates with a very specific set of skills and work experience.

Is a Labour broker an employer?

The contract is only considered to be a contract of employment because section 198(2) of the LRA expressly provides that the labour broker is the employer. The employees immediately become employed on the same terms and conditions of employment as similar employees at the client without any negotiation or agreement.

What is Labour broking South Africa?

Labour broking (also known as Temporary Employment Services/TES) is a practice in South Africa in which companies (the end users) employ a “casual” workforce through labour brokers, which are agencies that provide these workers for a short period of time.

How much do recruitment agencies charge in South Africa?

The business then pays the agency upon hiring one of their candidates. Standard recruitment costs tend to range between 15% and 20% of a candidate’s first annual salary, but this can go as high as 30% for hard to fill positions.

Is a labour broker an employer?

Why does labour unions want these brokers to be banned?

Labour brokering allows employers to evade their obligations as stipulated in the LRA. This is tantamount to outsourcing labour relations to a third party. Workers under labour brokers are unable to enforce their rights against any party that may be identified legally as the employer.

What is a section 198?

Section 198 allows for fixed term contracts longer than three months. A law, sectoral determination or a collective agreement (which does not have to be a bargaining council collective agreement) can also allow for fixed term contracts to be longer than three months.

Do recruitment agencies take a cut of your salary?

Do recruiters take a cut of your salary? Recruiters do not take a cut of your salary. The company the staffing agency places you at however does compensate the recruiter based on a percentage of your first year’s salary if the employer and recruiting agency have a contingency agreement in place.

Is it worth using a recruitment agency?

Recruitment agencies can deliver the candidates that are the best fit for a certain position and role. However, they are much weaker at assessing a cultural fit. In other words, recruitment agencies can help you choose the best candidate for your open position, but not for your company culture and your team.

Where are the labour brokers in South Africa?

Address: 167 Voortrekker St, Kwazulu Natal, 4001, South Africa, Durban. See full address and map. Address: 13 Northgate Pl, Red Hill, Kwazulu Natal, 4051, South Africa, Durban. See full address and map. Address: 1607 Maritime Pl, Esplanade, Kwazulu Natal, 4001, South Africa, Durban. See full address and map.

Do you need to be registered as a labour broker?

The labour broker would also need to be registered as an employer in that industry. Third, where the labour broker and the client are jointly and severally liable for breaches by the labour broker of certain wage regulating measures, the worker may institute proceedings against either the labour broker or the client or against both.

Do you have to register with the Department of Labour?

All labour brokers have to register themselves with the Department of Labour before getting into the business of placing work seekers in the job market. This is according to the new draft regulations on the registration of Private Employment Agencies and Temporary Employment Services.

What are the benefits of using a labour broker?

The difference with using a broker is that they are able to continue to look for work while an employee is completing a temporary contract. This may or may not lead to permanent positions, but it certainly helps the chances of having continued employment, or employment with fewer and shorted gaps between jobs.