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Labour Law
When a company faces insurmountable financial challenges, liquidation may become the only viable option to resolve its debts.
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For South African employers, understanding the Employment Equity Act (EEA) is critical for promoting fair treatment and equal opportunity in the workplace.
In South Africa, the Labour Relations Act provides a framework for resignation under such circumstances, commonly referred to as constructive dismissal. Constructive dismissal occurs when an employee resigns because their employer's conduct has made continued employment intolerable.
Constructive dismissal claims hinge on a trifecta of essential elements that the employee must convincingly prove for a claim to be valid. These elements form the backbone of the legal framework governing constructive dismissal and are critical in understanding both the nature of these claims and the burden of proof required from the employee.
In the context of South African law, blacklisting is a notation on an individual's or company's credit report that indicates a history of non-payment or defaulting on debt. This mark can severely impact a person's or entity's ability to borrow money, obtain contracts, or even secure employment.
The employment relationship is one based on trust and where the conduct of either parties amounts to a violation of this virtue, it may result in the other party feeling discouraged to play their part in a way that achieves the goals of the arrangement.
It is widely accepted that the main objective of law is to ensure that justice prevails. In the administration of justice, there is a notion that requires that justice ought not only to be done, but it must be seen to be done.
Sections 189 and 189A of the Labour Relations Act 66 of 1995 provide for dismissals based on the operational requirements of the employer, or in short, retrenchment. This is why a retrenchment is often described as a dismissal that is due to no fault on the part of the employee.
It can be presumed that an employee who voluntarily resigns from their job would have put in place contingency measures to survive until they secure other employment, what of an employee who is summarily dismissed or retrenched?
The amended Employment Equity Act introduces several noteworthy changes that demand attention. These revisions, which come into effect on 1 September 2023, will reshape the landscape of employment practices in South Africa.
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