Recruitment agencies appear to be very similar to labour brokers. They both place individuals into employment positions within companies and handle everything, from sourcing candidates to conducting interviews and selecting a finalist. In the very challenging economic climate we find ourselves in today, both service providers supply extremely valuable assistance both to individuals seeking employment, and large companies seeking suitable candidates for vacancies they may have. Understanding the difference between a labour broker and a recruitment agency is an important element in seeing the benefit of using the one rather than the other. Here are some marked differences.
While both handle every part of the hiring process, a labour broker goes further than that. A recruitment agent will usually only get involved up until the placement has been made unless it is a temporary vacancy. A labour broker will handle the hiring, the payroll, the admin and every aspect of managing the employee, including HR and discipline. This frees up the company to simply continue with their work, and the labour brokers handle everything else.
A labour broker basically acts as an external HR department for a company, minimising the paperwork and the risk involved in hiring and firing staff.
Recruitment agent sources possible candidates using a database of contacts that are saved. Each time a vacancy appears, the database is screened for suitable persons. A candidate is then selected and the recruitment agents job is done.
A labour broker will source fresh candidates for each vacancy that arises and handle each part of the hiring job. This means that the HR company is responsible for any legal implications in the hiring or firing of staff. If a disgruntled employee decides to approach the CCMA or the labour courts with a complaint, the company the employee works for is in no way liable or guilty, it is all on the labour broker's shoulders.
Many people feel that because an employee is appointed and managed by an outside entity, they should only be entitled to the agreed package and no company benefits. After all, they are not really employed by the company but employed by the labour broker who simply hired their services to the company.
It was recently ruled by the High Court that candidates who are employed for longer than three months must receive company benefits. They should be hired permanently by the client company, and therefore must receive any benefits a permanent employee would receive.
“The significance is that those employees are treated equally to the employees of the client and their rights are intact, as being equal to other employees,” said Bagraim, a labour lawyer fighting for the rights of labour broker employees within the client company.
If you are seeking the services of a labour broker, know that you are protected, both as an employee and has the employer. The labour broker can act as a wonderful intermediary. Find a wealth of labour brokers in your area, listed right here on Snupit. Snupit is your one-stop shop online directory, supplying you with listings from all industries.
Filed under : Labour Brokers