Discover the world with our lifehacks

What is Section 197 South Africa?

What is Section 197 South Africa?

Section 197 of the Labour Relations Act (LRA) places heavy responsibilities on the employer who takes over the business (or part thereof) of another employer as a going concern. This section forces the new employer to take over all the labour related obligations of the old employer.

What happens to employees when a company is sold South Africa?

All rights of the employees of the old employer are protected when the business is transferred to the new employer. Thus, all rights and obligations that applied between the old employer and an employee shall remain in force between the new employer and the employee.

What is a second generation transfer?

Second generation outsourcing transfers are typically when a contract for rendering services between a client and a contracted service provider is transferred to the new employer as part of the transfer of a business as a going concern.

What is a Section 14 transfer South Africa?

A Section 14 transfer is the transfer of retirement fund benefits from one retirement fund to another in terms of Section 14 of the Pension Funds Act. Section 14 transfers will either follow the Section 14.1 or 14.8 process.

How long is Section 197?

These provisions provide that for a period of 12 months after the transfer the old employer is jointly and severally liable with the new employer to any employee who is due to receive payment in regard to severance, leave pay or amounts owing in regard to a dismissal related to operational requirements, unless the …

Can an employee be forced to transfer?

Transferring an employee from one place to another is not by itself unlawful. It is within the inherent right of an employer to transfer or assign an employee in the pursuit of its legitimate business interests. However, this right is not absolute.

What is a 197 transfer?

In terms of section 197 a ‘business’ includes the whole or a part of any business, trade, undertaking or service; and ‘transfer’ means the transfer of a business by one employer (‘the old employer’) to another employer (‘the new employer’) as a going concern.

How long is Section 197 valid for?

What is a Section 37 transfer?

Answer: Mandla, Section 37 of the Long Term Insurance Act provides for transfers of living annuities from one insurer to another. Directive 135 provides for transfers from one living annuity either to another living annuity or to a conventional (guaranteed) type annuity.

What is a directive 135 transfer?

A Directive 135 transfer is a transfer of a member owned living annuity from one company to another in terms of Section 37(2) of the Long Term Insurance Act, subject to the provisions of FSB Directive 135 of 2001.

Can an employee refuse transfer?

[11] An employee who refuses to be transferred, when such transfer is valid, is guilty of insubordination or willful disobedience of a lawful order of an employer under Article 282 of the Labor Code.

What are the reasons for transfer?

The following list defines some of the most common reasons for requesting a transfer.

  • Advancement opportunities. Some facilities perform better than others.
  • Life changes.
  • Job security.
  • Better fit.
  • New challenges.
  • Shift transfer.
  • Versatility transfer.
  • Replacement transfer.