Labour Minister Membathisi Mdladlana on Tuesday confirmed that the "problem" of labour broking will be addressed in legislation this year.

Speaking in the National Assembly during debate on his budget vote, he said that since 2004, a lot of research into the labour market had been conducted.

This was to better understand and increasingly appreciate evolving labour market trends in the country.

"In the year of action, more research is not required. We have listened, and in the year of action, we must act on issues raised by our people. This is the year of action," he said.

"Yes we shall address the problem [of] labour broking - the problem shall exist no more.

"Yes we shall prohibit the abusive practices. Yes we shall introduce provisions in the law to facilitate unionisation of workers," Mdladlana said.

The review of labour law was a result of the unintended consequences of law. Section 198 of the Labour Relations Act (LRA) had created alot confusion.

"Our labour legislation has not impeded the growth of the temporary employment agencies.

"Bargaining councils have tried to regulate this terrible tendency of abusing and exploiting workers without success. The rules that exist thus far and the 2002 amendments have not assisted either," he said.

The coming amendments would provide clarity in dealing with who the employer should be so as to effectively remove the difficulty of identifying the correct or the real employer.

The amendments would make it easy for the Commission for Conciliation, Mediation and Arbitration (CCMA) to determine whether a dismissal had taken place.

The Constitution gave every worker the right to form and join a trade union and also the right to strike.

"This right is for everyone and every worker whether temporary, permanent and on contract. We are on course - the bills will be in Cabinet in due course," Mdladlana said.

As part of the efforts to improve the status of vulnerable workers, the department was also investigating the possibility of establishing provident funds in a sectoral determination for farm and domestic workers in 2011.

Discussions with service providers and affected parties were already under way to develop specifications for the funds, he said.

Inkatha Freedom Party (IFP) MP Velaphi Ndlovu expressed support for plans to end abusive labour broking practices.

"We task the minister to take the necessary steps in order to bring these abusive practices to an end. Legislation or prohibition must be enacted which will create a standard code of practice within this industry.

Andre Louw from the Democratic Alliance said it was clear that an outcry over a mooted ban on labour broking, and evidence showing that government departments used brokers, had forced Mdladlana to back down and opt for regulation instead.

"(He) has been forced by the weight of evidence to rethink on his promise to ban labour brokers."

Louw said he suspected the minister had been trying to appease labour federation Cosatu in the run-up to last year's general elections with promises of a ban.

"The empty rhetoric and rabid threats by the Honourable Mdladlana have now been exposed for precisely what they are - a cheap trick to shore up support with Congress of South African Trade Unions members ahead of the 2009 national election even while knowing that his threats would never materialise."