Labour Bill passed, labour hire banned

LABOUR hire companies are outlawed by a new labour law passed by the National Assembly yesterday.

Apart from the labour hire issue, the legislation is generally set to have a major impact on the labour market and the economy. At the last minute, a clause on regulating labour hire companies was amended to such an effect, that these companies will become illegal from the moment the new legislation is published in the Government Gazette.Among others, it stipulates that “no person may, for reward, employ any person with a view to making that person available to a third party to perform work for the third party”.Anyone found contravening this section of the new labour law will have to pay N$80 000 or go to prison for five years or both.The clause does not affect job agencies, because they offer a service to match job seekers with employers without the agency becoming “a party to the employment relationship that may arise” from the matchmaking.”In plain layman’s language Clause 128 prohibits the trading of human beings to a third party.It will stop a person or company from hiring or trading people and sending them to a third party for employment.Such practices will be prohibited with the new law,” said Labour Minister Alfeus Naruseb.The new law also provides for more leave days for employees as well as compassionate leave.A major change is also the provision to solve labour disputes through arbitration.The labour movement reacted positively to the passing of the new labour law.”Arbitration will help to resolve labour disputes quicker,” said Evilastus Kaaronda, Secretary General of the National Union of Namibian Workers (NUNW).”With regard to the criminalising of labour hire companies, I say that our voices have been heard.Parliamentarians of both the opposition and the ruling party in an unwavering manner supported the efforts to abolish human trade,” Kaaronda told The Namibian, when approached for comment.The Namibian Employers Federation (NEF) expressed a different view.”Outlawing labour hire firms totally is a regrettable infringement on the rights of those companies who are in compliance with decent labour practices,” said NEF Secretary General Tim Parkhouse.”This unfortunate step has been brought about by the actions of a number of labour hire companies which are not NEF members and who are guilty of unfair labour practices.”Total prohibition of labour hire did not address the situation in a satisfactory way, the NEF statement noted.”The question needs to be asked why labour hire became part of certain labour market dispensations.The main reasons are the over-regulation and inflexibility of the labour market, obliging employers to make use of alternative methods of staffing their businesses in order to remain competitive,” Parkhouse said in the NEF statement.”The inefficiency of the Namibian labour regulatory authority to resolve labour disputes is a further contributing factor which encourages the use of labour hire companies,” he noted.At the last minute, a clause on regulating labour hire companies was amended to such an effect, that these companies will become illegal from the moment the new legislation is published in the Government Gazette.Among others, it stipulates that “no person may, for reward, employ any person with a view to making that person available to a third party to perform work for the third party”.Anyone found contravening this section of the new labour law will have to pay N$80 000 or go to prison for five years or both.The clause does not affect job agencies, because they offer a service to match job seekers with employers without the agency becoming “a party to the employment relationship that may arise” from the matchmaking. “In plain layman’s language Clause 128 prohibits the trading of human beings to a third party.It will stop a person or company from hiring or trading people and sending them to a third party for employment.Such practices will be prohibited with the new law,” said Labour Minister Alfeus Naruseb.The new law also provides for more leave days for employees as well as compassionate leave.A major change is also the provision to solve labour disputes through arbitration.The labour movement reacted positively to the passing of the new labour law.”Arbitration will help to resolve labour disputes quicker,” said Evilastus Kaaronda, Secretary General of the National Union of Namibian Workers (NUNW).”With regard to the criminalising of labour hire companies, I say that our voices have been heard.Parliamentarians of both the opposition and the ruling party in an unwavering manner supported the efforts to abolish human trade,” Kaaronda told The Namibian, when approached for comment.The Namibian Employers Federation (NEF) expressed a different view.”Outlawing labour hire firms totally is a regrettable infringement on the rights of those companies who are in compliance with decent labour practices,” said NEF Secretary General Tim Parkhouse.”This unfortunate step has been brought about by the actions of a number of labour hire companies which are not NEF members and who are guilty of unfair labour practices.”Total prohibition of labour hire did not address the situation in a satisfactory way, the NEF statement noted.”The question needs to be asked why labour hire became part of certain labour market dispensations.The main reasons are the over-regulation and inflexibility of the labour market, obliging employers to make use of alternative methods of staffing their businesses in order to remain competitive,” Parkhouse said in the NEF statement.”The inefficiency of the Namibian labour regulatory authority to resolve labour disputes is a further contributing factor which encourages the use of labour hire companies,” he noted.