EMPLOYMENT SERVICES ACT (ACT NO.4 OF 2014)
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1 EMPLOYMENT SERVICES ACT (ACT NO.4 OF 2014) 1
2 1. Context and Policy Mandate - Vision & Mission - Legislative, Policy mandate - Labour Market challenges 2. Employment Services Act - Chapter Schedules Implementation of the Act 4. Conclusion Presentation Outline 2
3 1. Our Vision The Department of Labour will strive for a labour market which is conducive to investment, economic growth, employment creation and decent work 3
4 1.1. Our mission Regulate the south African labour market for a sustainable economy through : appropriate legislation and regulations Inspections,compliance monitoring and enforcement Protection of human rights Provision of employment services Promoting equity Social and income protection Social dialogue 4
5 1.2. Constitutional Mandate The DOL s legislative framework is informed by the South African Constitution, Chapter 2 & Bill of Rights: Section 9, ensure equal access to opportunities Section 10, promotion of labour standards & fundamental rights at work Section 18, Freedom of association Section 23, to ensure sound Labour relations Section 24, to ensure an environment that is not harmful to the health & will being of those in the workplace Section 27, to provide adequate social security nets to protect vulnerable workers Section 28, to ensure that children are protected from exploitative labour practices & not required or permitted to perform work or services that are inappropriate for a person of that child s age or their well being, education, physical or mental health or spiritual, moral or social development is placed at risk Section 34, access to courts & access to fair and speedy labour jusctice 5
6 1.3. Legislative and other Policy Mandates The South African Constitution and related policies and prescripts, and learning from the various ILO Conventions and International Labour Standards, the Department of Labour administers the following labour legislation: Labour Relations Act 66 of 1995 (LRA); The Basic Conditions of Employment Act 75 of 1997 (BCEA); The Employment Equity Act 55 of 1998 (EEA); The Unemployment Insurance Act 30 of 1996 (UIA); The Occupational Health and Safety Act 85 of 1993 (OHSA); The Compensation for Occupational Injuries and Diseases Act 130 of 1993 (COIDA); and National Economic Development and Labour Council (NEDLAC) Act, 35 of Employment Services Act (Act No. 4 of 2014) 6
7 1.4. Challenges that DOL face in the Labour Market Unemployment and under employment Changing nature of work Inequalities and unfair discrimination Domestic and cross border labour migration Inadequate instruments for constant performance, monitoring and evaluation of labour market and programmes to determine their impact on the economy 7
8 2. Overall objective of the ES Act 1. To provide for public employment services that will play an active role in employment promotion in order to tackle our high levels of unemployment. 2. To provide for the establishment of schemes to promote the employment of young work seekers and other vulnerable persons; 3. To provide for schemes to assist employees in distressed companies to retain employment; 4. To facilitate the employment of foreign nationals in a manner that is consistent with the objects of this Act and the Immigration Act, 2002; 5. To provide for the registration and regulation of private employment agencies; 8
9 2.1. Overall objective of the ES Act 6. To provide for the establishment of the Employment Services Board; 7. To provide for the establishment of Productivity South Africa; 8. To provide for the establishment of Supported Employment Enterprises; 9. To provide for transitional provisions; and 10. To provide for matters connected therewith. 9
10 2.2. Strategic thrust To contribute to the government s objective of More Jobs, decent work and sustainable livelihoods. The Act repositions public employment services to play a major role in employment promotion and employment preservation and will also assist employers and workers to adapt to changing labour market conditions; The Act also seeks to, amongst others, contribute towards: Reducing unemployment, poverty and inequality; Reducing work seekers reliance on UIF, Social Security Grants or reliance on Compensation Fund; Accelerating employment creation; and Promoting employment growth and productivity; 10
11 2.3. Clause by clause analysis CHAPTER 1: DEFINITIONS, PURPOSE, INTERPRETATION AND ADMINISTRATION OF THE ACT CHAPTER 2: PUBLIC EMPLOYMENT SERVICES (PES) Outlines functions that PES must provide free of charge. These functions include; matching work seekers with available work opportunities, registering work seekers, registering job vacancies and other work opportunities, facilitating the placing of work seekers with employers or in other work opportunities, advising workers on access to social security benefits, providing specialized services to assist vulnerable work seekers including youth, new entrants into the labour market, disabled persons and members of rural communities, facilitating the exchange of information among labour market participants including employers and work seekers, careers counselling, assessment of work seekers to determine suitability and other related life skills necessary to secure employment. 11
12 CHAPTER 3: PRIVATE EMPLOYMENT AGENCIES Clause 13-19: Provides for the registration of private employment Agencies in accordance with the criteria and regulations recommended to the Minister by the Employment Services Board. Including: Prohibited acts for Private Employment Agencies and the applicable fines. Information that private employment agencies are required to keep and safeguard. Powers and conditions under which the registrar can cancel a private employment agency s registration and also provides for a review process in case of dissatisfaction with the registrar s decision. 12
13 CHAPTER 4: EMPLOYMENT SERVICES BOARD (ESB) Clauses 20-30: Provide for the establishment of the Employment Services Board, its composition and function including: The ES Board constitution, disqualification from membership of ES Board, resignation and removal from board administration support to the ES Board remuneration of Board members not employed by State Funding of Board activities Reporting obligations 13
14 CHAPTER 5: PRODUCTIVITY SOUTH AFRICA Clause 31 41: Provide for the establishment anew, of Productivity South Africa, which was originally established under the Skills Development Act to promote employment, growth and productivity. Including: Functions, composition & constitution of Productivity SA Board Disqualification from membership of the Board, resignation & removal from office of members remuneration of members. appointment of a Chief Executive Officer The Minister s powers to dissolve the Board, procedures for dissolution & appointment of an administrator. 14
15 CHAPTER 6: PROMOTION OF SUPPORTED WORK FOR PERSONS WITH DISABILITIES Clauses 42-47: Provides for the promotion of employment for persons with disabilities through the establishment of the Supported Employment Enterprises Persons who have long term physical, mental, intellectual or sensory impairment which in interaction with various barriers may hinder their full & effective participation in society on an equal basis with others Sheltered Employment Factories established in 1948 are re-constituted as the Supported Employment Enterprises, under the PFMA. The sections provides to promote: New functions that include on-the-job training for people with disabilities & promote their access to formal and self-employment including: appointment of the head of the entity powers and functions of the Minister & the head of entity, staff & finances 15
16 CHAPTER 7: GENERAL PROVISIONS Clause 48-54: Provides for the: jurisdiction of the Labour Court in respect of matters (other than criminal prosecutions) arising from the Act, monitoring and enforcement of the provisions of the Act in accordance with Chapter 10 and Schedule II of the Basic Conditions of Employment Act, offences and penalties for contravention of certain provisions of the Act, Ministerial procedures for delegating functions to Director General, regulations that the Minister may make to achieve the purpose of the Act, the repeal of laws, transitional provisions & short title and commencement. 16
17 SCHEDULES SCHEDULE 1: provides for repeal of certain sections of the Skills Development Act that relate to employment services functions that remained with the Department of Labour when Skills Development was transferred to DHET during SCHEDULE 2: provides transitional provisions relating to the regulation of private employment agencies, Productivity South Africa and the Supported Employment Enterprises. SCHEDULE 3: sets out contraventions of the Act in respect of which fines may be imposed by the Labour Court. 17
18 OFFENCES WHICH A FINE CAN BE IMPOSED Failing to display a certificate of registration in a conspicuous place on the premises (section 13(8) Contravening section 14(a) to (d) Charging a fee to any individual work seeker for employment services (section (15 (1), except in accordance with section 15(2) Deducting any amount form an employee s remuneration in respect of the placing of that employee in employment (section 15(4) Requiring or permitting an employee to pay any amount in respect of the placement of that employee (section 15(4) Failing to keep up to date records (section 16) Compromising the confidentiality of information (section 17) 18
19 IMPLEMENTATION OF THE ES ACT Process initiated for the President to promulgate the Act to come into force before end of August 2014 DOL has 126 Labour centres, 8 Mobile Units, Employment Counsellors & Employment Services Practitioners (ESP) that are to be used to expand the services The Minister has initiated a process to establish the Employment Services Board Discussions are also underway with National Treasury, UIF & CF & the EU to fund certain components The department is also working closely with the Department of Home Affairs re Corporate & Individual work visas, Inspectorate & Enforcement & the Department of Justice 19
20 CONCLUSIONS The ES Act provides the policy framework within which the Public & Private Employment Agencies (PEA) / Temporary Employment Agencies (TEA) can work together to facilitate entry into employment whilst at the same time providing the necessary protection to vulnerable workers 20
21 THANK YOU SAM MOROTOBA DIRECTOR-GENERAL: LABOUR (ACTING)
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