In a bid to raise productivity, reduce unemployment and ensure training for unskilled or marginally-skilled workers, the South African government recently introduced the Employment Services Act (ESA) 4 of 2004, says Gareth Cremen, partner at Ramsay Webber Attorneys.
The Employment Services Act 4 of 2004 will regulate the registration of private employment agencies with the inclusion of labour brokers. The enforcement of the Act will be through a Public Employment Service which will be established and managed by the State.
The purpose of this is to assist the unemployed to find appropriate jobs, through matching registered employers’ requirements with registered job seekers’ abilities and trainability.
Licensing required in some sectors
In certain industries, employers will be required to pay a license fee in order to aid the funding of the Service. The employers will also have to at least interview the nominees who are forwarded by the Service for prospective job openings. The Service will have to comply with the Protection of Personal Information Act and non-compliance may well have a knock-on effect which may prove detrimental to employers registered with the Service.
A glance at the potential for setbacks for employers show that there are several areas for concern with regard to compliance: The process of interviewing prospects sent by the State-run Public Employment Service may be a long one; and employers run the risk of non-compliance should the employ candidates without interviewing those recommended for that post.
The employment of foreign nationals is also subject to the Act, in terms of which the Minister of Labour can enact regulations with a view to protecting and promoting the employment prospects of South African citizens and permanent residents from competition from foreign nationals. The latter cannot be employed without a valid work permit.
The Act also encompasses support for persons with disabilities to enter formal and self –employment.
Implementation of the Act may not be smooth sailing, and companies should look carefully at how to work within the parameters of the law while still maintaining productivity and filling vacant posts.
For assistance with understanding the Act and all its ramifications for your business, contact Ramsay Webber on +27 11 778 0600 or e-mail us on admin@ramweb.co.za.