The implementation of the new Labour Relations Amendment Bill is likely to have little impact on the ICT industry and could even be seen as a positive move by some, says Paracon CEO Mark Jurgens.
Jurgens says there are many benefits for clients to use contractors in the industry and many ICT professionals prefer being contractors for a number of reasons. The Bill effectively only offers additional protection to low-earning workers, meaning the influence on the ICT industry will be minimal.
The labour broker Bill seeks to regulate labour broking by making it unlawful for labour brokers to employ labour for an unidentified period of time. While the ANC initially demanded a complete ban on labour brokers, it retreated from this demand last week, instead opting for a maximum three-month temporary employment period.
The Parliamentary Portfolio Committee on Labour finally adopted the Labour Relations Amendment Bill this week, which includes a three-month period in which the terms and conditions of employment of those placed in temporary work by labour brokers could differ from other workers.
After the three-month period, the temporary worker could be deemed to be the employee of the client. However, this proposed amendment does not apply to persons earning more than R183 000 per annum.
Taking into account the income threshold, the amendment is unlikely to have much of an impact on the ICT industry, says Jurgens. "In a company like Paracon, about 98% of our contractors earn more than the R183 000 per annum and will, therefore, not be impacted at all."
Jurgens also notes that all forms of independent contracting are excluded from the new labour legislation, as they are included in the existing legislation. "As the overwhelming majority of Paracon's consultants are skilled professionals who provide services as independent contractors in accordance with the Information Technology Association standard agreement, it will be business as usual for these individuals and our clients," says Jurgens.
The Bill will now proceed to the National Assembly for debate before being sent to the National Council of Provinces for further deliberations.
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