Tag: going concern
Transfer from one contractor to another
Where an undertaking (or part thereof or a service) of any kind is transferred by one employer to another as a going concern section 197 of the Labour Relations Act (LRA) comes into effect. This forces the new entity to take over all the employees of the old undertaking.
Are ACSA Board directors liable under the Companies Act 2011?
Airports Company South Africa (ACSA) directors should reread the personal liability sections in S45 in the Companies Act 2008 (the Act) before extending any further largesse to SA Express Airways (SAX).
JUDGEMENT | Automatic transfer of employees?
Do employees automatically transfer from an old service provider to a new service provider when the client replaces the one with the other? The Labour Appeal Court (LAC) recently engaged low gear to provide proper traction on the automatic transfer of employees.
Can a restraint of trade agreement survive a going concern transfer?
Are restraint of trade agreements transferred in terms of a section 197 transfer of business as a going concern? A restraint of trade agreement or undertaking is only transferred in terms of section 197 of the Labour Relations Act if it constitutes a term of a transferring contract of employment.
Review applications & post-transfer realities
When contemplating the purchase of a business as a going concern, it is necessary to carry out the appropriate due diligence of the respective business.
