What Is A Labour Broker

What Is a Labour Broker?

A labour broker, also known as an employment agency or staffing agency, is a third-party company that matches job seekers with potential employers. They serve as middlemen between employers looking to fill job vacancies and individuals seeking employment. Labour brokers are commonly used in industries where temporary or seasonal work is common, or where there is a high turnover of employees.

How Do Labour Brokers Work?

Labour brokers work by sourcing and recruiting candidates for job openings on behalf of their client companies. They typically have a database of potential candidates and match them to job vacancies based on the specific requirements of the employer. Labour brokers handle the recruitment process, including screening resumes, conducting interviews, and checking references. Once a suitable candidate is found, the labour broker will facilitate the hiring process and assist with any necessary paperwork.

Benefits of Using a Labour Broker

There are several benefits to using a labour broker for both employers and job seekers. For employers, labour brokers can save time and resources by handling the recruitment process on their behalf. Labour brokers also have access to a larger pool of candidates, allowing employers to find the best talent for their job vacancies. For job seekers, labour brokers can help them find employment opportunities that match their skills and experience, as well as provide support and guidance throughout the job search process.

What Is A Labour Broker

Regulations for Labour Brokers in South Africa

In South Africa, labour brokers are governed by the Labour Relations Act, which regulates the relationship between employers, employees, and labour brokers. The act requires labour brokers to comply with certain regulations, including providing job seekers with written contracts outlining the terms and conditions of their employment, as well as ensuring that workers receive fair wages and benefits. Labour brokers are also required to register with the Department of Labour and abide by the Code of Good Practice for Temporary Employment Agencies.

Challenges Faced by Labour Brokers

Despite the benefits of using a labour broker, there are also challenges and criticisms associated with their services. Some critics argue that labour brokers contribute to the exploitation of workers by providing temporary or insecure employment with low wages and minimal benefits. This has led to calls for greater regulation and oversight of the labour broker industry to protect the rights and welfare of workers.


Labour brokers play a vital role in the South African labour market by connecting job seekers with employment opportunities and helping employers fill job vacancies. While there are benefits to using a labour broker, it is important to be aware of the regulations and challenges that exist within the industry. By understanding the role of labour brokers and the regulations that govern their operations, both employers and job seekers can make informed decisions about utilizing their services.