EMPLOYEES VS INDEPENDENT CONTRACTORS
Recent amendments have been passed changing some of key aspects of
Labour Legislation in South Africa. This
legislation is the output of discussions that have taken place with the
major stakeholders and attempts to address the various constituent needs
in a practical and balanced way.
Employees vs Independent Contractors:
Employee, and not Independent Contractors, are covered by the Labour Relations Act and the Basic Conditions of Employment Act. Since Independent Contractors are excluded from the Basic Conditions of Employment Act and the Labour Relations Act they would not be entitled to:
Section 200A of LRA and Section 83A of the Basic Conditions of Employment Act creates a series of rebuttable presumptions as to who is an employee, which applies to all workers earning below R89 455.00 per year. (Please note that the earnings ceiling is changed from time to time. Contact the Department of Labour for the latest applicable figure. Their contact details are available on their website http://www.labour.gov.za/contact/center_offices_display.jsp )
Unless the contrary is proved,
a person who works for or renders services to any other person is
presumed, regardless of the form of the contract, to be an employee if
any one or more of the following factors are present -
Should a dispute exist over the nature of any proposed or existing work arrangement, the CCMA should be approached for an advisory arbitration award.
Information provided on this page is based on the document “Labour Law Amendments 2002” found on the Department of Labour’s website.
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|National Assistance: 0860 LABOUR/ 0860 522687