The DA supports the labour broker’s decision to appeal the Labour Appeals Court’s ruling that ‘brokered’ employees should automatically become employees of the client company after three months.

Da shadow minister of labour Michael Bagraim said the party did not agree with the ruling, and was hoping the Constitutional Court would look at the matter again and reinstate labour brokers.

“The labour broking business is certainly not in any way incongruent with our legislative framework. Labour brokers are employers who are experts at the employment industry and assist companies on a regular basis when they require more staff than is normally required,” Bagraim said.

In contrast to the organised labour union, the DA believes the labour broking industry worldwide is on an enormous growth path and that the ruling takes away workers’ rights, as they now lose the right to take court action against the labour brokers.

“Imagine a situation where a labour broker places an employee at a client for 6 months, and the client goes insolvent. There would be no claim against the labour broker, whereas under the judgement of the lower court that employee would still have equal rights against the labour broker who would not be insolvent,” Bagraim added.

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