The amendment to the LRA intends to create a balance between the need to protect vulnerable employees against the potential for abuse and the need to permit short-term flexibility. The amendment was passed in August 2013 and is with the President for signing into law; effective date of 1 April 2014. The substantive amendments protect three categories of non-standard employees earning under the earnings threshold (R193 805, 00 per annum):
- Temporary employment services
- Individuals under fixed term contracts and
- Part-time employees.
Should your organisation not have aligned to the changes in the LRA, it may lead to the above categories of employees deemed to be permanent staff. This will happen without having followed the normal Human Resources recruitment processes impacting on an organisation’s head count targets, equity targets and other requirements like testing and vetting. Another expected consequence is a high number of CCMA and labour court interventions.
· Are you aware of these changes in the LRA and how significant could it become for your organisation?
· Did your risk management process help you to identify this and other risks external to your company?