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Read the following scenario before answer the question
Vatiswa works for Tseba Taba Tsago Professionals (TTP). TTP employs people whose services it
avails to its own clients in exchange for an agreed fixed amount. Vatiswa receives her salary payments
from TTP and TTP is responsible for paying her UIF contributions and deducting her employee taxes.
For the last six months, Vatiswa has worked as a filing clerk on behalf of her TTP’s client,
McDonald-Kentucky Corporation (MKC), in Mthatha. Recently, Vatiswa discovered that she earns
less money than other filing clerks directly employed by MKC and did not receive an annual bonus
which the MKC employees were entitled to despite doing the same work as them. Vatiswa decides to
use a Large language model (so-called “Al” model) in order to obtain legal advice for her legal
predicament.
Below is the answer provided by the ChatGPT AI:
Vatiswa's situation raises several important legal considerations under South African labor law,
particularly concerning the principle of equal pay for equal work and the nature of her employment
through Tseba Taba Tsago Professionals (TTP).
1. Equal Pay for Equal Work: Vatiswa has discovered that she earns less money than other filing
clerks directly employed by McDonald-Kentucky Corporation (MKC), despite performing the same
duties. This situation potentially violates the principle of equal pay for equal work as enshrined in
South African labor laws, particularly in terms of the Employment Equity Act, No. 55 of 1998. This
act prohibits unfair discrimination, including unfair discrimination in terms of remuneration.
2. Legal Nature of Employment (TTP's Role): Vatiswa is employed by TTP, not directly by MKC.
TTP assigns her to work for MKC under what seems to be a form of labor broking or temporary
employment service arrangement. In such arrangements, TTP remains her legal employer, responsible
for paying her salary, deducting taxes, and ensuring compliance with UIF contributions. However, this
does not absolve MKC from its responsibilities regarding fair treatment and equal pay.
3. Remedies and Legal Consequences: Equal Pay Claim: Vatiswa may have grounds to lodge a claim
against MKC for equal pay for equal work. Despite being employed by TTP, MKC cannot unfairly
discriminate against her in terms of her remuneration compared to its own employees doing the same
work.
Breach of Rights: If Vatiswa's terms of employment with TTP do not explicitly waive her rights to
equal pay compared to MKC employees, then MKC may be in breach of her rights under the law.
Legal Action: Vatiswa could potentially pursue a claim through the Commission for Conciliation,
Mediation and Arbitration (CCMA) or the Labour Court for unfair discrimination and/or unpaid
bonuses, seeking compensation or rectification of the discriminatory practices.
