Does the new labour law mean temporary employees are entitled to permanent employment after three months?
HR Pulse explores this question in this article on their website, written by Tebogo Moalusi, IR Executive: Staffing and Outsourcing Cluster at Workforce Holdings Staffing.
In 2018 the Constitutional Court made a ruling regarding the deeming provision referred to in section 198A of the Labour Relations Act (LRA). This ruling stated that the client of a Temporary Employment Services (TES) provider is deemed to be the sole employer of assigned temporary employees earning R 17 119 or less per month, following three months of employment. However, understanding what this ruling actually means for a business can be a daunting task.
Regarding the new law, Moalusi says, “This does not mean that they (temporary employees) must be employed directly by the client, or ‘put on the client’s books’. If temporary employees are employed for a period longer than three months, it does not result in a transfer to a new employment relationship, simply a change in the statutory attribution of who the ‘employer’ is according to the LRA. It also does not mean that they are entitled to permanent employment, because section 198B makes provision for the use of fixed-term contracts of employment exceeding three months, provided the need for such contracts can be justified”.