Shifting from controversy to compliance

The long-running debate over Temporary Employment Services (TES) in Namibia appears to be reaching a turning point, with growing calls to shift the focus from whether the model should exist to how it should be regulated.

Concerns about labour hire remain widespread, driven by fears of unfair treatment, low wages and job insecurity. These concerns are often amplified when companies operate outside the law, contributing to a lack of trust in the sector.

However, industry stakeholders argue that when properly regulated, TES can play a constructive role in the labour market by offering flexibility to employers while creating formal employment opportunities for jobseekers. It can also support skills development and provide work experience that may lead to longer-term employment.

There is, they say, an opportunity for Namibia to develop a stronger regulatory framework that ensures compliance, reinvests in local skills and strengthens capacity across key sectors of the economy.

History and structural gaps

Public mistrust of temporary staffing is rooted in historical and structural factors. Namibia’s labour landscape remains shaped by the legacy of contract labour systems during the colonial era, while ongoing abuses by some operators continue to reinforce negative perceptions.

Unlike neighbouring South Africa, Namibia does not have sector-wide bargaining councils to set industry wage and working condition standards. This places greater responsibility on individual employers, staffing firms and regulators to ensure compliance.

“Namibia has a real opportunity to develop the necessary regulatory frameworks, ministerial determinations and enforcement mechanisms,” said Natashia Moosa, commercial manager for Workforce Staffing Africa & Middle East. “It can learn from neighbouring models, identify shortcomings and build a robust, tailored system that balances flexibility with protection.”

Exploitation versus legitimate TES

Stakeholders say it is important to distinguish clearly between legitimate staffing services and exploitative practices.

Under Namibia’s Labour Act, charging workers recruitment fees is prohibited.

“Let’s be clear: charging workers a fee to get a job or deducting from wages is exploitation,” said Julien Karambua, country manager for Workforce Staffing Namibia. “Ethical staffing providers act as employers. Accessing work through a legitimate provider should always be free for the employee.”

He added that confusion sometimes arises in policy discussions about the role of TES providers. Recent comments by the labour minister suggested that staffing firms should withdraw from the employment relationship once a worker is placed.

“That describes a recruitment agency model, not temporary employment services,” Karambua said. “In project-based or seasonal work, the TES remains the employer, managing payroll, HR and industrial relations throughout the assignment.”

Shared accountability and enforcement

Industry representatives say a sustainable TES system depends on clear, shared responsibility between staffing providers and host employers. A recurring concern among unions is that some companies use labour hire arrangements to avoid employment obligations.

“A legitimate TES will never work with a client trying to bypass labour laws or minimum wage requirements,” said Moosa. “It creates serious reputational and legal risks. But accountability is shared: because the TES does not control the workplace, the host employer must take full responsibility for occupational health and safety.”

She added that enforcement must be strengthened to ensure compliance.

“Labour protections only work if enforcement is visible and well resourced. Inspectors must be empowered to carry out unannounced inspections to ensure compliance with the Labour Act, contracts and wage protections.”

A sector at a crossroads

Stakeholders say Namibia now has an opportunity to redefine temporary employment as a structured and regulated part of the labour market.

“The aim is to position temporary employment as a credible pathway within the workforce, supporting localisation, skills transfer and investment in local capacity,” said Karambua.

Across emerging markets, regulated TES systems have been shown to improve formal employment and compliance when properly enforced.

The question, industry players say, is no longer whether TES should exist in Namibia, but whether the country can build and enforce a framework that ensures fairness, protection and economic value for all parties involved.