Date: August 18, 2009 - 5 pm
Category: Advice, Clients, IT Goods & Services, Labour
In a labour broking scenario, a temporary employment service (labour broker) employs people who then provide services to a client (person for whom the work is being done). For example, ICT Labour Broker employs Joe Soap (a computer programmer), who then provides ICT goods or services to Acme Bank Limited (the client).
Another example is outsourcing – Acme Bank outsources the support of a specific application to an ICT vendor and the ICT vendor then employs Joe Soap to provide those services.
Recently there has been much talk in the press that labour broking is going to be banned or that outsourcing is going to be outlawed. If it happens it would have a major impact on many industries, especially the labour broking industry.
It seems highly unlikely that the Minister will prohibit or ban “clients” from receiving the services of persons employed by labour brokers
This issue is especially important for ICT vendors.
I attended the annual Labour Law Conference held in Johannesburg last week and the Minister of Labour indicated that the Department of Labour intended to align various employment laws and clearly define what is meant by an “employer“. In our example, ICT Labour Broker is generally the employer not Acme Bank.
It seems highly unlikely that the Minister will prohibit or ban “clients” from receiving the services of persons employed by labour brokers, but
- Register - It's quick, easy and FREE to get greater access instantly. [ Register ]
- If you are a client of Michalsons, you get registered user access and complimentary access to client content. Register at [ Register ] and then send us an email requesting access as a client of Michalsons. We will give you access and notify you by email.
Tags: labour broking, Outsourcing
No Comments Yet