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Thread: Ruling on deemed permanant employment and labour brokers

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    Platinum Member sterne.law@gmail.com's Avatar
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    Ruling on deemed permanant employment and labour brokers

    The CCMA has ruled that in terms of amendments that after a 3month fixed term contract a person is deemed to be a permanant employee of the company even where employed through a labour broker.

    The labour broker is therefore off the hook, so to speak
    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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    Site Caretaker Dave A's Avatar
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    Quote Originally Posted by sterne.law@gmail.com View Post
    The labour broker is therefore off the hook, so to speak
    Perhaps not if the employer can still sue the TES for some reason. In the matter I read, one of the points was that the commercial aspects of the contract still remained valid.

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    Platinum Member sterne.law@gmail.com's Avatar
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    Most labour brokers have an indemnity clause.
    I think such a clause could be ruled against public policy and therefore invalid.
    The TES wouldntehn escape the liability, BUT that would probably close their business
    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 Citizen X's Avatar
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    Quote Originally Posted by sterne.law@gmail.com View Post
    Most labour brokers have an indemnity clause.
    I think such a clause could be ruled against public policy and therefore invalid.
    The TES wouldntehn escape the liability, BUT that would probably close their business
    I couldn't agree more, my learned colleague. I'll give you the honours of explaining 'public policy.'
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