Labour outsourcing at its most basic level is about effectively matching the available workforce to the demanded workload. It offers a flexible, legally compliant program requiring a relatively low level of human resource input from clients, thus enabling clients to concentrate on their core business, meet variances in demand productively, and allow the maintenance of a competitive and cost-effective stance by clients being able to closely monitor demand for workers at specific times.
A good example of this variation in demand would be through the term of a construction project, during which the demand grows from zero at the project start, to a peak requirement, and then drops back to zero at the completion of the project. A further example would be during seasonal operations, such as the fruit harvesting season, or during peak holiday times, such as December, when many more waiters, barmen and allied staff are required by holiday resorts than during off-peak times.
A competent labour outsourcing company should:
- Be fully compliant in respect of all relevant registrations;
- Be fully legally compliant with all relevant legislation and regulations;
- Be able to pay workers, to calculate and pay legislated deductions such as Income Tax, and to calculate and pay any other required deductions, correctly and timeously;
- Have staff with an extensive knowledge of labour law;
- Have staff competent to deal with any Human Resources and Industrial Relations problems and issues as they arise, including assuming responsibility for matters carried through to the CCMA and Labour Courts;
- Have staff competent to supply workers with the necessary skill-sets to clients as required and to supply training as required;
- Maintain a strong relationship with local communities on issues of mutual interest;
- Ensure that the company itself obeys completely the law of the land and calculates and pays items such as Skills Development Levies, Bargaining Council Levies, VAT and suchlike correctly and timeously.