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What is a labour broker?

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Labour broker definition

A labour broker (or Temporary Employment Service) is a person or company that provides labourers to client companies on a temporary basis. The workers work at the client company site, but are the employees of the labour broker, not the client.

This means that the labour broker is responsible for all the admin related to the employee, such as payroll, taxes, leave administration etc. For the employer it means greater flexibility, as extra labour can be brought in quickly when necessary, and removed from site when there is less work to do. This can greatly reduce costs and increase efficiency. It also means that any workers who are sick or away from work for any other reason can be quickly replaced so ensure there is always a full complement of staff.

The labour broker usually would do background checks, criminal record checks etc on their pool of labour, and makes sure that their workers are well trained. So instead of bringing in labourers off the street, by using a labour broker you can ensure you are getting hard working, reliable workers.

There is a misconception that labourers who work through labour brokers become the employee of the client company after three months. This is only true in terms of unfair dismissals. A worker employed through a labour broker for the same client company for more than 3 months has the same rights regarding unfair dismissal, and also should not be treated differently to permanent workers. If the worker feels they have been unfairly dismissed, than both the labour broker and the client company can be taken to CCMA and held jointly and severally liable.  However in all other respects, the labourer is still the employee of the labour broker, and the broker will deal with all admin, leave, payroll, etc. It is possible to hire temporary employees through a labour broker for periods longer than 3 months, as long as the duration of the contract can justifiably seen as being for a limited and definite period, or there is another justifiable reason for a fixed term contract. See our post on the new temporary employment laws for more details on this.

Looking for temporary unskilled work?

Are you unskilled or semi-skilled and looking for part time work through a labour broker? Western Star Outsourcing is a major temporary employment provider all over South Africa. If you would like to send us your CV please send it to the relevant branch by fax or email. See here for our branch contact details.

Looking to hire contingent labour?

Western Star can provide all kinds of blue collar labour on a temporary or permanent basis. We also offer white collar recruitment and offshore recruitment services through our other divisions. Contact us for more details.

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Casual workers rights in South Africa

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Casual workers rights in South Africa

 

Please note that there is no definition for ‘casual’ workers in our current legislation. The old Basic Conditions of Employment Act of 1983 used to refer to casual labourers, but the more recent act from 1997 does not mention them. We are using the term ‘casual’ here to mean anyone employed part-time or temporarily.

In South Africa, casual workers’ rights are generally very similar to the rights of permanent employees, as long as they work more than 24 hours a month.

Since 1997, anyone who works more than 24 hours a month is covered by the Basic Conditions of Employment Act. This specifies the basic rights of all employees regarding such things as working times, leave, remuneration, termination, and more. There are a few exceptions to this, the BCEA does not apply to the following:

  • Members of the National Defence Force, the National Intelligence Agency, and the South African Secret Service
  • Unpaid voluntary employees who do work for a charitable organisation
  • Employees who work for an employer for less than 24 hours a month
  • Employees on vessels at sea where the Merchant Shipping Act of 1951 is applicable
  • Certain special provisions apply to companies employing fewer than ten employees.

If you earn more than the ‘threshold’ amount (currently  R205,433.30 per year, or approximately R17,120 p/m), then certain sections of the Act do not apply:

  • section 9: limitations on ordinary hours of work
  • section 10: overtime work and payment
  • section 11: Compressed working week
  • section 12: Averaging of hours of work
  • section 14: provision of meal intervals
  • section 15: daily and weekly rest period
  • section 16: pay for work on Sundays
  • section 17: night work
  • section 18(3): Public holidays (where an employee may work on a public holiday on which he/she would not have ordinarily worked)

Casual labour pay rates

 

There is no specific pay rate for temporary employees as opposed to permanent employees. However, the minimum wage would be determined by a sectoral determination for your industry. Click here for the minimum wages in various sectors.

 

Casual worker holiday pay

 

Casual workers’ rights for holiday pay should be the same as a permanent employee as long as they work more than 24 hours a month. According to the BCEA, this would be a minimum of 1 day’s leave for every 17 days worked. (Or 1 hour of leave for every 17 hours worked).

 

Casual worker sick pay

 

During each sick leave cycle of 3 years, an employee is entitled to an amount of paid sick leave equal to the number of days they would normally work in a 6 week period. However, during the first six months of employment, an employee is entitled to 1-day of sick leave for every 26 days worked, so this is more likely what will be relevant to a temporary worker.

 

Casual worker tax

 

Casual workers’ rights with regard to tax should be the same as permanent employees except if they work less than 22 hours per week. There is a threshold amount for when you start paying tax, which depends on your age. If you earn less than the threshold (which increases slightly each year, then you are not eligible for tax payments. You can find more information about the current tax rates from SARS.

Casual and part-time workers who work less than 22 hours per week are generally taxed at 25% from the first rand that they earn. However, if you work regularly for the same employer and can provide them with a written undertaking that they are your only source of employment, then you can be treated as if you are in standard employment and taxed at the normal weekly or monthly rate as per the tax tables.

Casual Employment Notice Period

 

As long as you work 24 hours in a month or more, the notice period for termination would be the same as that for a permanent employee. This depends on the length of time you have been employed:

6 months or less – 1 weeks notice

6 months to 12 months – 2 weeks notice

More than 12 months – 4 weeks notice

However, farmworkers and domestic workers who have worked for more than 6 months are entitled to 4 weeks’ notice.

A collective agreement could reduce the notice period to a minimum of two weeks for those who have worked for more than 12 months.

An employer is entitled to pay the employee out without requiring any further work.

 

Severance Pay

 

Severance pay applies only in the case of retrenchment. Severance pay must equal at least one week’s pay for every year of continuous service. Previous employment with the same employer, broken up by periods of less than one year would be regarded as continuous (unless there was a previous retrenchment).

An employee who unreasonably refuses an offer of alternative work is not entitled to severance pay. See here for some more information about termination from the CCMA.

 

Looking for work?

 

Measured Ability is a recruitment agency and labour broker offering staffing services to all industries nationwide, as well as throughout Africa and the Middle East. Please take a look through our current jobs or upload your CV to our database if you would like us to contact you when future opportunities come up which are suitable for your experience.

 

Need casual labourers / temporary employees?

 

Measured Ability provides white collar recruitment and blue-collar recruitment and labour broking services to all industries nationwide, as well as throughout Africa and the Middle East. Please contact us to find the right solution for your needs.

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Temporary employment laws in South Africa

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Temporary employment laws in South Africa

 

The 2015 changes

 

As of the 1st January 2015, some major changes were made to the temporary employment laws in South Africa. From that date, any person employed under a temporary employment contract for a period of longer than three months without a justifiable reason (see below) would be ‘deemed’ to be an ‘indefinite period employee’ (ie permanent employee) of the employer, and be protected against unfair dismissal in terms of the Labour Relations Act. (Note that the three months doesn’t mean the current contract period, but rather the total period of employment.)

When employed by a labour broker, they do not become the employee of the client company after three months, but if the employee is dismissed for a reason they believe is unfair, then both the client company and the labour broker can be taken to CCMA and can be held jointly and severally liable.

The above changes to the temporary employment laws only apply to employees who earn less than the Basic Conditions of Employment Act threshold (currently R205,433.30 per year). It is also not applicable to businesses that employ less than 10 people, or for new businesses who employ less than 50 people if it is within the first two years of the business opening (unless the employer conducts more than one business, or this new business was formed by the division or dissolution for whatever reason of another business).

The above will also not apply in cases where a fixed-term contract is permitted by any statute, sectoral determination, or collective agreement. (The Dept. of Labour is expected to publish a document categorising certain forms of work as ‘temporary’.)

IOS Africa Recruitment Agency in Kenya

Justifiable reasons

There are certain times when an employer can employ someone on a temporary contract for longer than three months without the employee being deemed a permanent employee. This would be the case if the employer can satisfactorily prove that the nature of the work is for a limited and definite period, or there is another justifiable reason for temporary employment such as:

  1. Replacing another employee who is sick or absent from work
  2. Employment on account of a temporary increase in the volume of work, which cannot be expected to last longer than 12 months.
  3. A student or recent graduate being employed for the purpose of being trained or gaining work experience.
  4. Employed for a specific project which has a limited or defined duration.
  5. A non-citizen who has been granted a work permit for a specific duration.
  6. Employed to perform seasonal work.
  7. Employed for the purpose of an official public works scheme or similar public job creation scheme.
  8. Employed in a position that is funded by an external source for a limited period
  9. Has reached the normal or agreed retirement age applicable in the employer’s industry.

This is not a closed list of exceptions.

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Equal Treatment

Another change made to the temporary employment laws is that, after three months of employment, a fixed-term employee (even if the reason for the fixed term is justified), cannot be treated less favourably than a permanent employee, unless there is a justifiable reason for the different treatment.

A justifiable reason includes when the different treatment is as a result of the application of a system that takes into account:

  • Seniority, experience, or length of service
  • Merit
  • The quantity or quality of work performed
  • Or other criteria of a similar nature

The above is not applicable if such a reason is prohibited in terms of Section 6(1) of the Employment Equity Act (this refers to human-rights grounds such as race, religion, gender, etc.)

Employers must also provide employees with equal access to opportunities to apply for vacancies, whether they are on permanent or fixed-term contracts.

Need part-time staff?

Measured Ability is a recruitment agency and labour broker for all industries in South Africa and Internationally. We have been in the game for over three decades and always keep up to date with the latest legislative changes. If you need to take on some part-time staff, why not let us handle the recruitment and selection for you?

If you are looking for white-collar temps, please contact our Greys Recruitment division and we will help you find the right candidate.

If you wish to make use of our labour broking services for blue-collar labour, please contact Western Star Outsourcing, and leave all of your payroll, admin, and IR hassles to our expert team.

Looking for work?

If you are looking for part-time work, please take a look at our currently available positions, or upload your CV to our database to be considered for future positions.

 

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Learning About International Jobs and Recruitment

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If you want to work outside of the country that you live in, you will need some help from those working in international jobs and recruitment. They fully understand what it takes to get you into a position in another country. This is important because different countries have different rules and regulations surrounding employment and having someone to help you to navigate this will alleviate many hassles. International jobs and recruitment specialists can connect you to employers and help you to transition into your new job as smoothly as possible.

International Jobs and Recruitment made possible

Common Services with this Type of Recruitment

When you are working with international jobs and recruitment professionals, there are several different services at your disposal. The best service for you will ultimately depend on the type of work you are looking for. The following services are common with this type of agency:

  • Temporary staffing: If you are seeking international employment, but you do not want to immediately commit to a single company, you can consider temporary staffing positions. The lengths and required hours will vary significantly, but you can provide information about the hours that are best for you to accommodate your schedule and lifestyle. This is the most flexible type of employment that international jobs and recruitment specialists can help with.
  • Permanent positions: If you are looking for steady work that you can count on, you will want to look into permanent jobs. These agencies will take your skills and your background and match you with the different job opportunities that are available. It is important to note that different countries have different requirements for different fields. For example, a nurse working in the United States may not qualify for a job as a nurse in South Africa, and vice versa.

Networking Opportunities for Those Seeking Employment

When you visit an international jobs and recruitment specialist, you will be presented with a variety of networking opportunities that you can take advantage of. These are all designed to help you find employment in the right country and in the right field. It gives you the chance to connect with potential employers and to look at the different jobs that are currently available. Common networking services include:

  • The chance to share your resume with partner employers
  • Getting frequent job alerts via email that match your skillset
  • Getting job alerts from the recruiters’ partner offices so that you have access to more opportunities

Working in another country provides you with a wealth of new and exciting opportunities. However, if you have looked into doing this on your own, you know that it is no easy feat. There are so many things that you have to accomplish that the task can be quite daunting. When you get help from an international jobs and recruitment provider, you can rest assured that everything will be done right the first time. This will save you a lot of time and help you to start working much sooner.