WORKING RELATIONS
Constitutional Court set to pass judgment on status of labour brokers
The Constitutional Court will on Thursday hand down its judgment on the status of labour brokers in the employment of contract employees. The section in contestation before the court was a result of amendments to section 198a of the Labour Relations Act (LRA), which sought to regulate temporary employment services amid complaints of exploitation by labour unions. Labour brokers will find out whether they remain employers when contract employees are hired permanently by their clients or whether they will be eliminated from the employment equation completely. If the Constitutional Court finds in favour of the National Union of Metalworkers of SA’s (Numsa’s) argument, the judgment will have an adverse effect on the profitability of temporary employment services. The exclusion, if it passes, would, however, only apply in terms of the LRA. Thursday’s judgment will come after an appeal application brought by Assign Services. The labour brokerage has challenged an earlier judgment by the L...
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