Temporary Employment on the rise.

Since the onset of the economic downturn there has been a drastic change in the employment situation both locally and abroad as there is an increasing trend for hiring people on a temporary basis.

With so much uncertainty regarding in the employment market, employers are reluctant to hire new employees on a permanent basis and are leaning more towards hiring staff on a casual or temporary basis to fill those roles that previously might have been considered a permanent post. Employers are more comfortable taking short-term risks under the current situation.

Gillian Meier, CEO of Jobs.co.za says: “In recent discussions with a number of recruitment agencies we have discovered that many employment agencies who previously only placed permanent staff are now forced into having to do temporary placements to ensure that they continue to drive revenue in their businesses, while maintaining an existing relationship with their clients by being flexible towards their current needs, whether that be to fill permanent or temporary posts”.

The term ‘flexible staffing’ therefore holds true to recruiters, employers and Job Seekers in that everyone has to become more flexible under the current times.

For those who might be new to the world of Temporary Employment, here are some basic guidelines to Temporary Employment in South Africa:

The Skills Development Act stipulates that temporary employment agencies must be registered with the Department of Labour. Basic Guide to Private Employment Agencies.

Workers whose services are provided to a client by an employment agency are employed by the agency. The agency is the employer of the worker. The employee is then under a Temporary Contract of Employment with the employment agency (who is the temporary employer) and the Client, who is a third party, will typically enter into a ‘Contract of Work’ with the agency.

The employment agency hires out the services of the temporary employee to the client. The client pays the employment agency and the agency is therefore responsible for paying the temporary employee the agreed upon salary. The employment agency charges a far higher rate (salary) to the client than hat it has to pay the temporary employee, this being how the employment agency makes its money.

Upon completion of the assignment the Temporary Contract of Employment is automatically terminated and the Employment agency and Temporary employee then enter into a new Temporary Contract of Employment for each new assignment.

Although there is no direct employment relationship between the employee and the client, except for the ‘implied’ contract of work, both the employment agency and client (Company) are jointly responsible to stick to the Basic Conditions of Employment Act.

Occasionally a temporary employee may be employed directly by the Company thereby bypassing an employment agency entirely.

Whether employed through an employment agency (or labour broker) or by the Company directly, under the Basic Conditions of Employment Act a temporary employee must receive annual paid leave, sick leave and so on and is entitled to family responsibility leave, sick leave and overtime as with any other employee.  Furthermore, temporary employees are also entitled to be paid for public holidays that arise during the tenure of employment.

The termination of a Temporary Contract of Employment does not necessarily specify a terminate date, it usually details the termination of the contract being upon the occurrence of a particular event. For instance, the contract will terminate when the employee who is being filled in for returns from maternity leave, or sick leave etc. Or the contract is terminated upon completion of a particular task.

A worker who is an independent contractor is not an employee of a temporary employment service.  Visit the South African Labour Guide for more information on the understanding the differences between a contractor and a temporary employee in regards to the Employee’s Status.

Related Links

The department of labour provides specific Temporary Employment conditions in the following areas:

• Basic Guide to Temporary Employment Services (Wholesale and Retail);
• Basic Guide to Temporary Employment Services (Domestic Workers)
• Basic Guide to Temporary Employment Services (Farm Workers)

Wednesday, May 13th, 2009 at 11:19 am and is filed under JoBlog's Workplace, Recruiter's Sphere, The Employment Times, Top Tips for Job Seekers, Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.