#BizTrends2019: Five reasons to be optimistic about youth unemployment in 2019

With regards to point 3 of this article; Mr Willis is very poorly informed about the recent constitutional court ruling.Firstly, there is no provision in law that states that staff become permanent after a period of 3 months, regardless of the earnings threshold. What it does state, is that for the purposes of the LRA (and solely the LRA) the client of the Labour Broker is "deemed" to be the employee of the client. Its states very clearly in paragraph 74 of the judgement that this is NOT a transfer of employment, but rather extension of liability. The Labour Broker is still liable for the BCEA, SDL, WCA etc and therefore still remains within the employment relationship. I challenge Mr Willis to point out anywhere in the judgement where the word "permanent" appears. Secondly, Mr. Willis' headline of "less labour brokers, more formal employment" creates the impression that labour brokers are not a formal form of employment. The LRA and BCEA prescribed the same laws, whether an employee is employed directly by a client, or by the Labour Broker. Labour Broker employees enjoy the same rights as employees employed directly by their clients.Lastly, the perception this article creates that Labour Brokers do not contribute to meaningful, permanent employment is disingenuous. Labour Brokers are often the first step young job seekers get to enter the employment market. In addition, Labour Broking as a sector of employment is also the largest contributor of SDL and often expense more in training and upskilling of employees than direct employers.- Phillip Meyer