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Labour Law Amendments Are Devastating!

Posted By APSO, Monday, 08 June 2015
Updated: Friday, 29 May 2015

Labour Law Amendments Are Devastating!

Business Brief

The newly amended Labour Relations Act (effective since 1 January2015) are having  devastating impact not only on the national recruitment and staffing industry but also on the national country’s unemployment rate – which the act itself seeks to relive – if they continue to be interpreted by some stakeholders in a narrow light.

Amendments cause uncertainty

The amendments to the act have caused uncertainty in the market and has been highlighted as likely to cost the country 254 000 jobs. The interpretation of and uncertainty surrounding these amendments has already resulted in the folding of a number of small to medium sized recruitment companies – a number of which are Black-owned – and as a result, goes against government’s intention to support and grow Black business.

In compliance with the Labour Relations Amendments Act, No 6 of 2014 (LRAA) -  which aims to streamline the country’s labour environment and protect vulnerable workers – South African businesses are required to adjust the way in which they have traditionally employed and managed staff in their organisations.

Click here to read the full article

Tags:  amendments  APSO  job loss  Labour law  legislation  LRA  recruitment  recruitment agencies  regulation  uncertainty 

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Labour Law Amendments: Devastating for business, the workforce and the SA economy -HR Future.net

Posted By APSO, Thursday, 30 April 2015

Labour Law Amendments: Devastating for business, the workforce and the SA economy - HR Future.net

The newly amended Labour Relations Act (effective 1 January 2015) will have a devastating impact not only on the national and staffing industry but also on the economy and the country's unemployment rate - which the act itself seeks to relieve - if they continue to be interpreted by some stakeholders in a narrow light.

The amendments to the act have caused uncertainty in the market and has been highlighted as likely to cost the country 254 000 jobs in an article published by Business Day on Monday, 30 March.

The interpretation of and uncertainty surrounding these amendments has already resulted in the folding of a number of small to medium sized recruitment companies - a number of which are Black-owned - and as a result goes against government's intention to support and grow Black business.

This major impact to the already strained job market has been revealed in APSO's interaction with it's over 800 members.

 

To read the full article, please click here.

Tags:  apso  HR Future  job loss  labour law  labour law amendments  misinterpretation 

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STAFFING INDUSTRY LEGAL CHALLENGE ON LABOUR RELATIONS ACT “DEEMING” PROVISION

Posted By APSO, Thursday, 26 March 2015

STAFFING INDUSTRY LEGAL CHALLENGE ON LABOUR RELATIONS ACT “DEEMING” PROVISION

Dear Member,

At a recent CAPES meeting APSO, together with several other Industry role players, unanimously decided that the time has arrived to approach the Court to obtain a Declarator on the interpretation of the “deeming” clause in the Labour Relations Amendments Act (applicable from 1 January 2015).

The CCMA and Government appear to interpret the clause to mean that assignees/temps transfer permanently to the client after the 3-month period. We do not believe that this is the correct interpretation. The Industry obtained a number of legal opinions, including senior legal counsel, which support our stance on the deemed provision.  

The question whether or not to go to Court was discussed 8 months ago and a “wait and see” approach was taken. However, due to the current situation facing many members and their clients, and the resulting confusion being created, it has been decided that the time has come to challenge this incorrect interpretation in a co-ordinated manner.

In the event that we lose in the Labour Court, we will then take it to the Labour Appeal Court and eventually, if necessary, to the Constitutional Court.

This is the biggest challenge that we as an Industry have embarked on and will require much effort. It is likely that the case will be vigorously defended from other quarters, especially organised labour.

We therefore call on you our members to stand together and support this cause – financially and in practice, including PR, support services and others – to ensure the survival and longevity of our business models and, indeed, the Staffing Industry.

The Industry, through its advocacy and lobbying arm CAPES, has mandated Jonathan Goldberg to proceed in this matter.  The process of ensuring that this very complicated issue is approached and scoped correctly to ensure the best possible outcome is currently underway. Should there be any queries in this regard, please do not hesitate to contact Jonathan Goldberg on info@capes.org.za.

JOB LOSS BAROMETER

The Labour Relations Amendments Act (applicable from 1 January 2015) has had unintended consequences on the flexible job market. In particular, the numbers of temporary jobs lost due to the "deemed provision".        

As an Industry, we would like to compile data on job losses being experienced due to the related new legislation. The Job Loss Barometer aims to encapsulate those contracts that have been affected in the run up to 1 April 2015, so that this information can be utilised to strengthen our case and highlight the inadvertent consequences of the legislation.

A Job Loss Barometer has been created that provides the consolidated/cumulative number of jobs that have been lost as a direct result of this legislation. To access the Job Loss Barometer, please click here.

To assist, please provide urgently the following information (as a minimum):

·         Contract affected (not necessarily the client’s name although at least the industry/sector) and ideally how long this contract has been in place

·         Number of temporary employees on site (that you manage)

·         Number that have been affected; and nature of the change in employment status;

·         Taken on directly by the client

·         Contracts terminated

·         If appropriate, reasons that the client has made the decision (expressly as a result of the changes, business needs, fear of the uncertainty, etc.)

 

Please note that information will be held in confidence and only shared in a consolidated/cumulative format as part of the Job Loss Barometer.

 Click here to begin the survey. 

 

Tags:  APSO  barometer  Constitutional  court  deeming provision  job  job loss barometer  labour court  labour law  labour law amendments 

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