Labour brokering is a South African term for a form

outsourcing Outsourcing is an agreement in which one company hires another company to be responsible for a planned or existing activity which otherwise is or could be carried out internally, i.e. in-house, and sometimes involves transferring employees and ...

practiced (and formerly practiced in

Namibia Namibia (, ), officially the Republic of Namibia, is a country in Southern Africa. Its western border is the Atlantic Ocean. It shares land borders with Zambia and Angola to the north, Botswana to the east and South Africa to the south and ea ...

, where it was known as labour hire) in which companies contract labour brokers to provide them with

casual labour Capitalism is an economic system based on the private ownership of the means of production and their operation for profit. Central characteristics of capitalism include capital accumulation, competitive markets, price system, private pr ...

. Labour brokers are different from recruitment agencies in that labour brokers handle almost all aspects of the worker's employment (including interviews, recruitment, HR, admin, payroll, transport, etc.), whereas recruitment agencies are only responsible for sourcing candidates for employment. In essence, rather than a company hiring a worker, it hires a labour broker who hires the worker in its stead.Umkhonto Labour Holdings. 2010. ''The difference between a Labour Broker and a Recruitment Agency''.
Retrieved 26 March 2012 In other jurisdictions, labour brokering is referred to as

Labour hire Labour hire is a form of employment in which an employer directs their de jure employees ('labour hire employees', or 'agency workers') to perform work at an external workplace, belonging to a client of the legal employer. In a labour hire arrange ...

Permatemp Permatemp is a U.S. term for a Temporary work#Temporary workers, temporary employee who works for an extended period for a single staffing client. The word is a portmanteau of the words ''Permanent employment, permanent'' and ''temporary''. Ther ...

, or

Employment agency An employment agency is an organization which matches employers to employees. In developed countries, there are multiple private businesses which act as employment agencies and a publicly-funded employment agency. Public employment agencies One ...

. The current statutory definition of a labour broker under South African law, as of 1 March 2009, is "any natural person who conducts or carries on any business whereby such person for reward provides a client of such business with other persons to render a service or perform work for such client, or procures such other persons for the client, for which services or work such other persons are remunerated by such person".Dryk Financial Services. 2010. ''The Definition of a Labour Broker''.
Retrieved 26 March 2012

Opposition to labour broking

In 2008, Namibia passed a law banning the practice of "labour hire", the Namibian term for labour brokering.Polity.org.za. 2009. ''Labour brokers under threat''.
Retrieved 26 March 2012 The

Congress of South African Trade Unions The Congress of South African Trade Unions (COSATU) is a trade union A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions ...

(COSATU), South Africa's largest trade union federation, has called for the abolition of labour brokering in South Africa. COSATU argues that labour brokers are responsible for the increasing casualisation of labour in South Africa. Currently about 30% of the South African workforce is casualised. As casual workers receive much lower salaries than permanent employees, and as they have much lower job security, COSATU argues that labour brokering, contrary to the claims of its supporters, does not create meaningful employment and that it, in fact, violates the rights of workers.Congress of South African Trade Unions. 2012. ''COSATU and NACTU memorandum on labour brokering''.
Retrieved 26 March 2012 COSATU called for a national one day general strike against labour brokering and the proposed

Gauteng Gauteng ( ) is one of the nine provinces of South Africa. The name in Sotho-Tswana languages means 'place of gold'. Situated on the Highveld, Gauteng is the smallest province by land area in South Africa. Although Gauteng accounts for only ...

e-toll system for 7 March 2012. On that day, the trade union federation mobilised tens of thousands of people, mostly workers, against labour brokering.Business Day. 2012. ''Thousands on strike as Cosatu lists demands''.
Retrieved 26 March 2012 Nonetheless, the ruling

African National Congress The African National Congress (ANC) is a Social democracy, social-democratic political party in Republic of South Africa, South Africa. A liberation movement known for its opposition to apartheid, it has governed the country since 1994, when ...

(ANC) dug in its heels; with Minister of Labour Affairs Mildred Oliphant stating that labour brokering "is here to stay".Independent Online. 2012. ''Labour broking ‘is here to stay’''.
Retrieved 26 March 2012

References

{{Employment Outsourcing Recruitment

Opposition to labour broking

See also

By country

References