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Abstract:
The banning of labour brokers has been debated extensively by Parliament, with the result being the implementation of Section 198A (3) (b) of the Labour Relations Act (LRA), Act 66 of 1995. The legislation has been in place since 2015, however a ruling by the LAC on 10 July 2017 ruled that contract employees of the Temporary Employment Services (TES) become permanent employees of the client company after 3 months. This study explores the perception on the potential effects of the implementation of Section 198A (3) (b) of the LRA on businesses in Durban, South Africa.
The study obtains the perspectives of interviewees on the effects of the implementation of Section 198A (3) (b) of the LRA, and determines its impact on businesses in Durban, it goes on to identify possible strategies to address the effects. An exploratory study, following the qualitative approach was used to gather specific non-numerical data leading to inductive reasoning that is probably true. Theoretical sampling was employed in the study as information was required from a sample of the population that knows the most about the subject. The study revealed through the respondents that the implementation of Labour Relations Amendment Act 66 of 1995 (LRAA) as interpreted by the Labour Appeal Court (LAC) will have a negative impact on business and the TES, employees will derive short term benefit as workers will have access to permanent jobs with benefits, however, the long-term effect on employees is negative, as jobs are expected to be lost. The short-term effects of the LRAA do benefit temporary employees, but business is negatively affected, both in the short and long term.
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