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DOL Gives Thumbs Up to Labour Broker Ruling

July 30, 2018

Department of Labour

The labour department has welcomed the recent Constitutional Court judgement on labour brokers.

The Court had ruled on the matter between Assign Service (Pty) Ltd, a temporary employment service agency, and the National Union of Metalworkers of South Africa (Numsa), the CCMA, Commissioner Abdool Osman, Krost Shelving & Racking (Pty) Ltd and the Casual Workers Advice Office (CWAO).

The Court ruled that a worker placed by a labour broker at a company and earning below R205 433,30 per annum, becomes that company’s employee with no contractual ties to the labour broker after a period of three months.

According to a statement, the judgement provides “clarity and certainty to an area that has been a matter for different interpretation of the law since the amendments to the Labour Relations Act (LRA) were promulgated in January 2015.”

The department’s director-general, Thobile Lamati, expressed support for the judgement.

“We feel that the Department has been vindicated in so far as the interpretation of provisions of the Labour Relations Act (LRA), which were inserted in the law to provide a legal framework to protect the most vulnerable workers,” said Lamati.

Meanwhile, the portfolio committee on labour also, in a statement, voiced approval for the ruling.

“The committee is of the view that the ruling is a victory for workers and will improve the conditions of service of the majority of workers.”

The committee also holds the view that the ruling will contribute towards “eliminating the exploitative relationship between workers and labour brokers.”

The committee also promised to factor the court ruling into future engagements.