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In Article Archive, Private by Jan Truter11 Comments

While the proposed amendments to labour legislation have attracted significant media attention, many refinements can still be introduced before the amendments reach the statute book. Even so, employers should be …

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  1. How will the ‘Work of equal value’ be applied on outsourced functions? Will a difference in terms and conditions of employment [especially working hours, leave entitlement and remuneration] between employees of two outsourcers, but for the same client, who perform the same or substantially the same work or work of equal value also fall under this category? And is there any difference in this between the client’s own employees and that of the outsourcer? I ask this because my employees [outsourced in a concern resolution centre] get less than the client’s own guys in the warehouse, packing supplies the whole day.

    1. The EE Amendment Bill seems to envisage only differences in terms and conditions of employment between employees of the same employer who perform the same or substantially the same work or work of equal value. In your case we are dealing with different employers. Even if one considers the extension of joint and several liability (of employers and labour brokers) envisaged in the Labour Relations Amendment Bill and the Employment Services Bill, the EE Amendment Bill deals with certain arbitrary grounds of discrimination and I doubt that it would extend to your situation. However, we shall have to wait and see what the final legislative product looks like before adopting a firm view on the matter. Jan Truter for Labourwise

    1. The proposed amendments are very controversial and we foresee several changes. We don’t know when the amendments will be implemented, but indications are that this may take much longer than initially anticipated.

  2. Smaller employers seem to faithful to legislation, its looks like the big guns are the ones who a in fear of the changes

  3. It is however interesting to note that BUSA withdraw from the NEDLAC process awaiting clarification on Government’s position –
    “At our last meeting ,BUSA MANCO agreed that the four Bills are in essence an attack on the very foundations of management in Business and thus we will not be participating in NEDLAC until such time as Governments position is made clear. This decision was well supported by the MANCO members.”

  4. Is it really difficult to remove the loophole? Why can Labour Brokers not be made responsible for payment facilitation and the actual client company that requests the workers service be held liable for enforcing employment rights/legislation. Qui mandate ipse fecisse vedetur,”he who orders an act to be done does the act most of all”

  5. Jan I agree totally with you. I am an employer who has had trouble in the past with an employee that walked out and I was penalised for that. Now I am very careful about the person I am employing and on what conditions. Because of the ccma i am already concerned about employing somebody and this only makes it worse. Give jobs Zuma and make life miserable.

  6. How will this new proposed legislation affect the employer, enployee, the employment and the unemployment in South Africa

    1. Author

      Our view is as follows: As far as existing employees are concerned, the amendments will increase job security (at least for employees earning below a certain threshold). From an employer’s perspective there are a few positive points (e.g. more clarity on certain aspects; high earning employees can be held accountable without fear of disputes being referred to the CCMA). However, the overall effect of the amendments will be unnecessarily punitive, will increase the cost of doing business and will discourage employers from appointing new staff. All in all, the amendments are likely to impact negatively on employment creation. A detailed analysis can be found in the Regulatory Impact Assessment (referred to as “the RIA”) by the University of Cape Town, dated 9 September 2010.

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