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The Labour Relations Amendment Act, in terms of which temporary employees must receive the same benefits as permanent employees after three months, could severely hamper employment, trade union Solidarity said today. This legislation comes into effect today.

According to Johan Kruger, Deputy General Secretary of Solidarity, the new legislation could result in fewer people finding work at all and the contracts of temporary employees not being renewed after three months. Kruger said that although the legislation applies to employees who earn less than R205 433,30 per year, it will have an impact on a significant number of workers.

“We have already received several enquiries from members who are concerned about the impact of the new legislation and how it will affect their careers. We are of the opinion that the amendment to the Act could result in companies increasingly subcontracting services or scaling down certain activities instead of employing temporary workers,” according to Kruger.

Kruger added that the government wants to force employers by means of the new legislation to employ temporary workers permanently. “The amendment of section 198 could have the opposite effect, in that it might discourage employers from employing temporary workers,” he said.

Issued by Solidarity