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Employers warned to take note of labour broker ruling

The court has ruled that a worker placed by a labour broker at a company becomes that company's employee with no contractual ties to the labour broker after three months.

FILE: The Constitutional Court. Picture: Gia Nicolaides/EWN

PRETORIA - Employers have been warned to take note of the Constitutional Court's interpretation of the Labour Relations Act, which means that workers hired from a labour broker become their permanent employees after three months.

The apex court handed down the judgment on Thursday in the matter between a temporary employment service and trade union Numsa.

The court has ruled that a worker placed by a labour broker at a company becomes that company's employee with no contractual ties to the labour broker after three months.

Speaking on Radio 702, labour lawyer Sherisa Rajah says that employers need to be aware of the implications of this ruling.

"The cautionary point for us as labour lawyers is to go to the market to say to employers "this could be a substantial liability for you if you have not budgeted for this cost."

Numsa says it will continue its fight to have labour brokers banned.

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