oa De Rebus - Section 197



Practitioners will be aware that, in COSAWU v Zikhethele Trade (Pry) Ltd and Another (2005) 26 ILJ 1056 (LC), the Labour Court held that the concept of 'second generation contracting-out' applies in our law. Second generation contracting-out can be explained as follows: Client A out sources a portion of its business to service provider X. When the contract between A and X terminates, and A awards the contract to service provider Z, the business originally outsourced to X returns to A and is re-allocated to Z.


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