Labor brokering has become exclusive to South Africa, as it is banned around the world. Labor brokering has many advantages like fast staff replacement, zero obligations towards worker, and hiring specialized skilled workers or when there is an increase in workload for the employer, and job availability, gained experiences and protection of rights, as well as many disadvantages like training the temporary worker, getting to know the worker and the expense it might take it hire the worker, while disadvantages for the employee might include exploitation, no benefits and unfamiliar environments.
What is labour broking?
According to (SARS, 2016), “A labor broker any natural person who conducts or carriers on any business whereby such person for…show more content… o Expensive
Client fees towards the labor broker might run at a cost while hiring a worker with specialized skills could be very expensive. It is for these reasons that originations should not use temporary workers unless in desperate need of the staff cover.
Advantages to using a labor broker o Rights
TES employees also have rights to fair labor practices and dismissals regardless of a third party. They are to be treated ‘no less favorably’ than any other staff member, as well as the right to claim against the client, the organization, directly. According to the LRA Section 185: Right not to be unfairly dismissed or subjected to unfair labor practice
Every employee has the right not to be
(a) Unfairly dismissed
(b) Subjected to unfair labor practice.
o Experience The labor broker would be able to place employees in positions suited to their skills and capabilities. This is useful among the younger generation looking to gain work knowledge and earn money part time. Because the positions can only be part time, employees are able to gain experience in different fields of…show more content… This is useful to young people looking to gain experience in the work field and students looking for part time work.
Disadvantages to using a labor broker o Unfamiliar Work environment The TES employee has no control over which organizations they are placed with and are continually moving around since the work is only temporary. They constantly have to familiarize with each companies policies and environments. This can create a sense of instability in the worker and could later present itself in commitment problems later to one company. o Exploitation
TES employees are under employment by the labor broker and not the organization. The labor broker is then liable to pay the wages of the employee while the organization has no obligation towards them. This could lead to the labor broker exploiting employees by paying them far less than what they should or by making semi literate people sign blank documents and fill in dates and other information after, albeit illegal. o No