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The CCMA rules on the deeming provision in respect of labour brokers

Fasken
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Overview

Labour, Employment and Human Rights Bulletin

The CCMA rules on the deeming provision in respect of labour brokers.

Section 198A of the Labour Relations Act, 1995, which came into force on January 2015, provides that were an employee of a temporary employment service performs work for a client for a period longer than three months the employee is, for the purpose of the Labour Relations Act, deemed to be an employee of the client.

The deeming provision has raised the question of whether the employee once he or she is deemed to be an employee of the client is solely employed by the client or is employed by both the client and the temporary employment service.

In the matter between Assign Services (Pty) Ltd and Krost Shelving & Racking (Pty) Ltd, the CCMA was required to deal with this issue. In the award, which was issued on Tuesday, 30 June 2015, the commissioner hearing the matter found that the deeming provision means that the client is, for the purposes of the LRA, the sole employer of the employee.

We understand that Assign is taking the matter on review to the Labour Court, and this is certainly not the last word on the matter.

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For more information or to discuss a particular matter please contact us.

Contact the Author

Author

  • Ludwig Frahm-Arp, Partner | Pensions and Benefits, Johannesburg, +27 11 586 6060, lfrahm-arp@fasken.com

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