The Misconception of Labour Broking and Outsourcing

Short-term VS long-term Employment

The concepts of labour broking and outsourcing are often misinterpreted and are used interchangeably; however, there are a number of differences between the two. The key difference is the type of employment generated.

Labour broking is more inclined towards temporary or casual employment. Outsourcing creates fixed-term or permanent employment, and employees are entitled to the benefits and full protection under the Labour Relations Act.

Key takeouts from this report.

The outsourcing space has emerged as a sustainable stimulator in the creation of jobs for our youth. 48% of employed outsourced staff are aged between 26-30 and 43% are aged between 18-25. This is imperative especially for a country which is facing high unemployment rates amongst graduates and first time job seekers. A distinction must therefore be made between outsourcing and labour broking.

What our experts say:

‘Outsourcing promotes the eradication of youth unemployment in SA as 48% of outsourced staff are aged between 26-30, while 43% are aged between 18-25 years old.’ Sandile Gwala: Business Process Solutions Managing Partner.

How can Deloitte help?

Negative connotations have been associated with outsourcing and labour broking, the issue is not the nature of this type of employment but rather the abuse which some organisations place their staff under. In fact these two improve the employability prospects for youth in a sustainable manner, if proper labour practices are in place.  60% of our youth are unemployed and these employment practices should be taken seriously in order to provide a sustainable employment solution for our youth.

To discover more about how outsourcing has emerged as a sustainable stimulator in job creation for our youth, download our report.

Labour Broking and outsourcing
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