Regulating the temporary employment sector: The impact of amendments to the Labour Relations Act

by Aalia Cassim

The amendments to the Labour Relations Act (LRA) came into effect on 1 January 2015 and essentially made the conditions around hiring and firing temporary employees more stringent and less flexible. The legislation made the cost of hiring through an intermediary more expensive than hiring workers directly. We examine transitions between temporary and non-temporary employment as well as the impact of the amendments on employment, contract lengths, output per worker (productivity), and the wage bill. This study will contribute to the literature on employment protection legislation in South Africa, in the context of a high unemployment rate.