Sale of business – employee claims

Sale of business – employee claims

Picture the scenario: you’ve negotiated to buy a business as a going concern. You’ve taken over the staff in addition to all the stock, customers and equipment. Next thing you find yourself on the receiving end of a labour claim by the seller’s ex-employees. This is what happened in Kunyuza v Ace Wholesalers. Ace Wholesalers entered into an agreement for the sale of business to Temba Big Save CC. The sale included the transfer of employees, which meant that Section 197 LRA applied to the transaction. Before the sale was concluded, Ace...

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Q: I run a small manufacturing plant, Our operations director has suggested that we change our factory staff over from a five-day working week to a four-day working week. Can we just do this?

I run a small manufacturing plant. With the rough economy lately we’ve been battling with our sales. We’ve managed to avoid retrenchments in our admin office because a few of our staff have left us and we just haven’t replaced them. And we’ve also managed to put a stop to overtime, which hasn’t been required because we’ve easily filled orders during normal working hours. It’s now gotten to the stage where we need to cut our salary bill even further. Our operations director has suggested that we change our factory staff over from...

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Pointing out the Dangers

South Africa is indeed a beautiful and bountiful land of contrasts. We are blessed with vast oceans, raging rapids, diverse wildlife, blistering desert environs, impenetrable forests, towering mountain ranges. The sun bakes us in summer, the snow freezes us in winter. The South African people are equally diverse, but we all have one thing in common: we love our country. And we love to take advantage of all the outdoor activities that this gorgeous landscape has to offer. But there are risks involved with outdoor activities. Sadly it is only...

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Q: I own a couple of properties that I rent out, What must I do about my leases?

I own a couple of properties that I rent out. I’ve heard that there’ve been changes to the law that have impacted on Lease Agreements. What must I do about my leases? A: The Rental Housing Act, together with the recently enacted Rental Housing Amendment Act, provide that Lease Agreements must be in writing. It’s the Landlord’s obligation to provide this written lease agreement, so it’s advisable for landowners to have their template lease agreements in place, and also ensure that they comply with the new statutory...

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Must a Lease Agreement be in writing?

Up until now there have been two ways of entering into a Lease Agreement: verbally or in writing. Verbal lease agreements are recognised in our common law. They are effectively month-to-month leases, and have been upheld as valid by our courts. Written lease agreements are, of course, the norm. It’s far more difficult to argue a he-said-she-said when everything he and she said is in writing! Things are about to change, however, in form of the Rental Housing Amendment Act* 2014. Section 5 of this Act requires all lease agreements to be in...

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