Temporary Employment Services (TES), commonly referred to as labour brokers, play a pivotal role in the South African employment landscape. A TES, as defined by South African labour law, refers to an entity that provides employees to a client for a temporary period. These employees are employed by the TES but work under the supervision and control of the client. The TES assumes all the responsibilities of an employer, such as paying salaries and ensuring compliance with employment laws, while the client benefits from the services of the workers.
Why Temporary Employment Services Are Important
In South Africa, the economy is often in flux due to factors such as global market conditions, political shifts, and industry-specific challenges. TES agencies provide flexibility, allowing businesses to scale their workforce up or down in response to market demands without the long-term commitments of permanent hiring. They are especially crucial for sectors like retail, manufacturing, and hospitality, which experience seasonal fluctuations in labour needs.
Benefits of Temporary Employment Services
- Flexibility for Employers: Companies can hire employees for specific projects or during peak periods without the long-term obligations of permanent employment.
- Cost-Effectiveness: By using TES, businesses save on recruitment, training, and administrative costs, as the TES handles these responsibilities.
- Compliance and Risk Management: TES agencies are bound by labour laws and regulations, reducing the compliance burden on companies. They ensure that employees are covered by the Basic Conditions of Employment Act (BCEA) and other relevant legislation.
- Opportunities for Workers: TES often provides opportunities for individuals to gain work experience and potentially secure permanent roles through their client companies.
Application Process for TES Registration
For a business to operate as a TES in South Africa, it must register with the Department of Employment and Labour. The registration process is conducted online through the State Information Technology Agency (SITA) portal at www.eservices.gov.za. Below is a step-by-step guide to the application process:
Step 1: User Registration
First, applicants must register as users on the SITA platform. This involves providing an email address, which will serve as the username for all future activities on e-Services. It is essential to use Google Chrome for optimal platform performance.
Step 2: Login and Profile Setup
Once registered, log in to the SITA portal. If any issues arise, such as forgotten passwords, applicants should reset the password rather than creating a new account. Upon successful login, navigate to the “Private Employment Agency” option in the “eServices” section.
Step 3: Complete the Application Form
On the application profile page, select “Apply” to access the form. The application types include “Register” for new or expired registrations, “Renew” for registrations that will expire soon, or “Registration” for changes in ownership or other significant details.
Applicants are required to fill out the form carefully and attach all necessary documents, which are detailed in the User Information section. Once the form is submitted, an application reference number is generated. This number is crucial for tracking the application status.
Step 4: Verification and Inspection Process
After submission, the application moves through several stages, including:
- Verification: Officials verify the completeness of the application. If there are any errors or missing documents, the application will be returned for corrections.
- Inspection: Once the verification is complete, a site inspection will be conducted by the Department’s Inspection and Enforcement Services (IES) team. Inspectors will check for compliance with the BCEA, Occupational Health and Safety (OHS) regulations, and Unemployment Insurance Fund (UIF) contributions. It’s important to note that inspectors do not determine whether an application is successful; they only assess compliance.
Step 5: Adjudication and Outcome
Following the inspection, the application, along with inspection reports, is reviewed by the Adjudication Committee. They make the final decision on whether to approve or reject the application. If approved, a certificate of registration is issued electronically. If declined, the applicant will receive a letter explaining the reasons for the refusal.
Applicants are advised to apply well in advance of the expiry of their current certificate, as the process can take up to 60 days. No confirmation letters are issued before the final decision is made.