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Thread: Labour Law with regarding contract/temp staff

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    Diamond Member HR Solutions's Avatar
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    Labour Law with regarding contract/temp staff

    Not sure if this has been discussed in the past, but can someone please advise and perhaps point me in the right direction. What does the law now say about temp workers ? i.e. people that are paid by an agency and work for a company. Is there a limited period that they can work this way for and / or is there a law ?
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    Diamond Member Justloadit's Avatar
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    I heard yesterday that the rights of the employee transfer to the person hiring from a labour broker. I am waiting for information to give me more details on this. The new LR legislation is really strong against SMEs and will be affecting the way in which SMEs look at the employment of staff.

    In other words if you get staff to work for you who is in the employ of a labour broker, then that member is effectively the same as any permanent staff member in your company, with all the LRA rights and responsibilities you have as a permanent staff member.

    Only the corporates have the deep pockets to have HRs to handle this new emerging mine field.
    As soon as I have something I will post.
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    Diamond Member HR Solutions's Avatar
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    Thank you Justloadit. I look forward to your reply when you have confirmation. A question - how would it work then if a contract that they might have been working on is completed and they say they don't need that person anymore, but might need them in a month or two ? Surely this cannot be the same as permanent people whereby you would have to pay them off etc. the whole idea is to hire people thro a broker when and where you need them ?
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    Diamond Member Justloadit's Avatar
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    With respect to period based employment, then a contract is signed with the employee, stating the start and end time. You still have to pay leave pay, sick leave, public holidays and bonus, provident fund, UIF and council fees, just as a full time employee.

    I need to confirm this, but there may be a retrenchment package as well, with respect to time worked. Now on short time contracts, the retrenchment is not a huge sum, but if the fixed contract is over a year or two, could mean an extra week or two of pay.

    This is why it is so important that your contract is set up properly from day one, and you explain all the terms and conditions when the you employ, to make sure that the employee understands that it is a fixed term contract, and get a witness to be there with you. I suggest you get a labour practitioner who is versed in the new labour legislation. Let me know if you need one.
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    Platinum Member sterne.law@gmail.com's Avatar
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    A fixed term contract will need a justifiable reason.
    There is 1 week per year of contract on severance.
    Fixed term must be on same terms as permanent, e.g. also medical I'd pension etc.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Platinum Member sterne.law@gmail.com's Avatar
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    There is also a deemed permanent employment, so the employer must now show that the person is nor permanent, unlike the previous onus on employee to show an expectation of renewal.
    I did a blog on the amendments, here on TFSA. It was before actual enactment, but most remains relevant.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    Diamond Member HR Solutions's Avatar
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    So am I correct in assuming that a person has the same rights as a permanent employee at the actual company that they are temping with ?
    And is it ok for a person to temp for an unlimited period of time ?
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    Platinum Member sterne.law@gmail.com's Avatar
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    No, you cannot temp for an I definite point of time.
    A fixed term contract must be justified.
    A number of acceptable reasons have been tabled.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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