Press Statement dated 26 July 2018
The Federation of Unions of South Africa (FEDUSA) has hailed a ruling by the Constitutional Court compelling companies to give a permanent contract to employees who had been recruited through labour brokers after three months in terms of section 198A of the Labour Relations Act as a victory for workers.
The Court ruling pulls the wind out of the hated labour brokerage practice and puts an end to an precarious situation where workers recruited through these third parties found themselves in a dual employment relationship, with the company and the labour broker who salted away up a large portion of their wages at one and the same time. Labour broker workers did not enjoy any social protection such as pension or provident funds or medical aid.
Labour brokers workers will now have a singular employment relationship – with the company only – receive their salaries or wages in full directly from the company and enjoy full social protection and annual leave benefits like any other worker following this landmark ruling by the highest court in the land.
Issued by Frank Nxumalo, Media and Research Officer, Federation of Unions of South Africa (Fedusa)