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FACTBOX-A look at S.Africa's proposed labour laws

Published 01/25/2011, 07:36 AM
Updated 01/25/2011, 07:40 AM

JOHANNESBURG, Jan 25 (Reuters) - South Africa is proposing sweeping chages to labour law.

The following is a look at the four bills

EMPLOYMENT SERVICES BILL

Aims:

* Set up a government employment agency. Private firms would be required to register job openings with the agency.

* Employment services would be free to the public and the agency will coordinate public and private sector jobs.

* Finds jobs for youth, disabled and disadvantaged. Criticism:

* Adds new layer of bureaucracy on employers, making hiring more difficult

* Would likely not function efficiently, given poor track record of state-owned enterprises and government agencies. This makes it more difficult for unemployed to find jobs

BASIC CONDITIONS OF EMPLOYMENT AMENDMENT BILL

Aims:

* Increase the benefits provided to contract workers to get them as close to possible to those of full-time employees.

* Remove "certain exploitative practises by employers" and increase penalties found violating the law."

* Says "employers must contribute benefits of similar or equal value to employees employed on a fixed term contract as the benefits afforded to permanent employees."

* Sets minimum prison sentence of 12 months for those who do not provide equal benefits to contract workers and a minimum of six years for those who violate child employment laws.

Criticism:

* Increasing benefits given to temporary workers would greatly increase the cost of hiring them.

* A clause that prohibits temporary employment services will fundamentally alter ways employers can hire short-term workers.

* Could lead employers to slash temporary jobs

LABOUR RELATIONS AMENDMENT BILL

Aims:

* Calls on employers to justify hiring temporary workers

* "Align the employment laws to ensure decent work by regulating sub-contracting, contract work and outsourcing".

* Says "an employee must be employed permanently unless the employer can establish a justification for employment on a fixed term."

Criticism:

* Makes it more difficult for employers to hire seasonal workers, while giving employers fewer options for staffing.

* Makes temporary employment less viable.

* Increases job insecurity for temporary and part-time workers.

EMPLOYMENT EQUITY AMENDMENT BILL

Aims:

* Provide legal measures to ensure equal pay for equal work.

* Calls for employers to provide data on work, pay and remuneration.

Criticism:

* Adds new layer of bureaucracy and adds costs to employers (Reporting by Jon Herskovitz; Editing by Giles Elgood)

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