COSATU Submission on the Employment Tax Incentive

Economic Context Triple challenges and apartheid legacy; Increasing unemployment; Global climate; Domestic jobless and low growth; Youth employment; SARS administrative efficiency; and DTI economic institutions.

Consultations 2013 consultations; 2016 consultations; COSATU proposals; Engagement; and Discussion Paper on Retirement Reforms.

Labour Broking and Outsourcing Rise of labour broking and outsourcing; Permanent vs. casual work; Call to ban labour broking and outsourcing; LRA amendments; ETI labour broker claims; Tax confidentiality; Bar labour brokers and outsourcing from ETI claims.

Displacements Identified displacements; Government interventions and sanctions; and DOL Labour Inspectors.

Further Questions Relation to pending National Minimum Wage? Long term plan? 2019 cessation impact? Goldman Sachs millions of ETI jobs plans?

COSATU Proposals Amend Part II of the Act by inserting temporary service providers (labour brokers) and outsourced contractors from eligibility to claim the ETI. Require jobs to be new, permanent and directly employed by the host employer to be eligible to access the ETI.

COSATU Proposals Continued Act, fine and bar companies who have been identified displacing older workers. Fill DOL labour inspector vacancies. Capacitate SARS to gather accurate comprehensive information on ETI claimants.

Conclusion Engagements; Proposals; Labour broking; Outsourcing; New permanent directly employed jobs; Enforcement; Sanctions; and SARS.