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Compliance · IR

Section 198 without the panic

Deemed employment is the clause everyone cites and few read. What the three-month rule actually changes, and how a properly structured TES engagement lives with it.

RiseUp Workforce Practice · 20 May 2026 · 7 min read

Toolbox talk before the shift starts on site

Section 198A of the Labour Relations Act is often presented as the end of temporary employment services in South Africa. It isn't — it's a definition of where the risk sits and a test of whether your provider has structured for it.

What actually changes at three months

For workers earning below the earnings threshold, an assignment that stops being genuinely temporary can result in the client being deemed the employer for LRA purposes, with equal-treatment obligations attached. The operative questions are the nature of the work, the duration, and whether the arrangement matches one of the lawful categories of temporary service.

What a defensible engagement looks like

  • The engagement category is named up front: genuine peak, project with an end date, substitute cover, or a structure designed for the deeming consequence rather than in denial of it.
  • Rates and conditions are set with equal-treatment obligations in view, so a deeming event changes paperwork, not economics.
  • Documentation — contracts, assignments, time records — is maintained to evidence the category claimed.
  • The provider tells you where the line is, in writing, before you're near it.
PPE compliance check at the site entrance
The question to ask a TES provider isn't "how do you avoid section 198?" It's "show me how your engagement stands up when section 198 applies."

This briefing is general commentary, not legal advice. Structure specific engagements with advice on your facts — and expect your workforce partner to participate in that conversation with documents, not reassurances.

Talking about this internally?

Bring the conversation to us — a scoping call turns the general problem into your numbers, your sites and a model recommendation you can defend.