Temporary Employment Providers - Friend or Foe? Contrary to the fact that legislation states that temporary employees work under a dual relationship between a TES provider and their client, the relationship has been questioned, confusing the situation and muddying the waters.
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media.
Currently, under a dual employment relationship, employees are given the protection of employment benefits under the TES provider and, after a three-month employment period, attain extra protection by being considered under the employment of both the TES provider and their client.
Yet various unions have pushed back against TES providers, citing that 'labour brokers' don't have the best interests of the workers at heart. So, are TES providers truly the enemy — or could they be the solution?
What is a TES provider?
The term 'labour broker' is being bandied about with startling regularity. Surprising, because 'labour brokering' is actually a concept that no longer exists in legal terms, according to Joanette Nagel, Labour Specialist at Hunts Attorneys.
"It's a term associated with 'bakkie brigades', those once comfortable picking up 'piece workers' and exploiting them with little to no consideration for labour laws," Joanette explains. "Today's TES providers are reputable organisations that, with the backing of the law and strict policies, provide a valuable service while ensuring that the rights and wages of temporary employees are in line with permanently employed staff."
Sean Momberg, MD at Workforce Staffing Solutions, agrees: "A dual relationship where the employee is employed by both the TES and the client after three months means that the employee is actually afforded more protection. If, for example, the client falls into circumstances in which they can no longer honour the contract, such as if they go insolvent or a project is cancelled, the TES provider is still bound by contract to the employee and their rights to compensation, among others, are protected."
The role of a TES in business
According to the Global Employment Trends for Youth 2017 study, conducted by the International Labour Organisation, the rapidly changing labour landscape has made the expectation of traditional or permanent employment less realistic than ever before.
"There is a global trend towards temporary employment that is supported by a new trend of flexibility in career choices as well as employment environments. The demand for TES providers to play a more active role in the labour market is higher than we have ever known," affirms Sean.
Organisations will also benefit from this trend, especially as businesses can outsource all non-core related labour requirements, allowing them to focus on their core purpose and not concern themselves with the labour function, or the overheads associated with human resources. "A TES takes on the responsibility of employment, remuneration, legal disputes, strike mitigation, employee wellness, interactions with unions, and many other HR concerns that are extremely resource intensive," says Sean.
A TES ensures economic continuation
"President Cyril Ramaphosa said in his recent YES initiative launch, that even those with further education often struggle to bridge the gap between learning and earning. TES providers help with bridging this gap, offering skills development that guarantees jobs," notes Sean.
"TES providers are here to stay and offer the best of both worlds to organisations and employment seekers alike. Dual relationships continue to protect workers, underpinning and promoting their rights, while helping businesses to cover any skills and employment gaps within their organisations without having to invest in huge HR departments and legal representation to do so."
Spotting a reputable TES provider
- Registered and compliant with the Labour Relations Act (LRA)
- Likewise with the Unemployment Insurance Fund (UIF) and relevant bargaining councils
- Has the necessary insurance and off-balance sheet financial protection in place
- Able to provide proof of regular auditing
- Able to show full legal compliance and holds a letter of good standing.
