EMPLOYMENT REGULATIONS
Labour broker welcomes court ruling as good for business
A Constitutional Court ruling that a labour broker is no longer legally the employer of the staff it places once that employee has become permanent, could be a boon for the temporary services industry. This is the view of Ronny Katz, CEO of labour services group Workforce Holdings, who said he had been waiting years for confusion to be removed from the industry on how labour brokers, their clients and workers were defined in terms of labour law. There had also been a lack of clarity about the legal relationship between the three groups, he said. Katz, who spoke following the release of financial results for the six months to June, said Workforce would be able to grow more aggressively and structure deals more easily following the ruling. The court ruled in July that labour brokers ceased to be co-employers once the temporary workers they place with clients become permanent after three months with the client company. This applied only for the purposes of the Labour Relations Act. Bro...
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