Labour Brokering : Modern Slavery or Capitalist Necessity

Abstract

There are a great many unacceptable labour practices throughout South Africa, many of them undoubtedly related to the treatment of workers supplied by labour brokers. Labour – broking, in terms of the policy of the Department of Labour, is the provision of casual workers (not service) by a job placement agency to a client in return for a fee. In other words the labour broker acts as a middle man; subject to certain conditions. The labour broker is exempt from paying PAYE, before the money owed is paid to the broker by the company, it supplied with workers. The arrangement involves three parties, the client, labour – broker and the worker. The employer pays the employee’s salary to the broker, who deducts his agreed percentage fee and pays the balance to the employee; the percentage deducted differs from sector to sector; a contract is essential between client and broker, because of several liability issues attached to any labour dispute, between the labour – broker, client and employee; unlike permanent employees, casual workers do not receive medical aid, life insurance cover, pension fund or other benefits associated with permanent employment.