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Applications for new positions during a retrenchment – selection criteria or a measure to avoid retrenchment?
24 June 2019 Employment

Applications for new positions during a retrenchment – selection criteria or a measure to avoid retrenchment?

The latest case in determining fair and objective methods of selecting employees for dismissal during a retrenchment process has struck fear in the hearts of employers who plan on embarking on retrenchment processes. In Mweli and Nakedi v MTN Group Management Services (Pty) Ltd, the respondent dismissed two applicants following a restructuring process of its Group Business Risk Management division.

SARS issues binding class ruling regarding unbundling transaction
21 June 2019 Tax & Exchange Control

SARS issues binding class ruling regarding unbundling transaction

Section 46 of the Income Tax Act, No 58 of 1962 (Act) provides tax relief where a company (Unbundling Co) wishes to unbundle its shareholding in a subsidiary (Unbundled Co), to the company’s own shareholders. The Unbundling Co’s shareholders’ indirect shareholding in the Unbundled Co is converted to a direct shareholding, in proportion to their shareholding in the Unbundling Co.

The proposed gambling tax draft legislation
21 June 2019 Tax & Exchange Control

The proposed gambling tax draft legislation

Louis Botha, Associate and Louise Kotze, Candidate Attorney in the Tax & Exchange Control practice, joined Classic FM to discuss the proposed gambling tax draft legislation that will be introduced during 2019, as announced in the 2019 Budget.

When are the winds of change justified? Determining dismissals where employees refuse an employer's proposal
20 June 2019 Employment

When are the winds of change justified? Determining dismissals where employees refuse an employer's proposal

With the recent amendments to the Labour Relations Act, No. 66 of 1995 (LRA) there has been much anticipation as to how the application of the newly amended sections would ultimately be interpreted and implemented by the courts. In the case of National Union of Metalworkers of South Africa (NUMSA) obo members and Aveng Trident Steel (A division of Aveng Africa (Pty) Ltd) (2019) (Aveng) the courts were tasked with determining the application of the amended provision of s187(1)(c) of the LRA, setting precedential headway on whether an organisational restructure, culminating in amendments to terms and conditions of employment, will always be automatically unfair if dismissals ultimately ensue.

Karoo lamb, rooibos tea, Bapsfontein… What’s in a name?
20 June 2019 Agricultural

Karoo lamb, rooibos tea, Bapsfontein… What’s in a name?

On 22 March 2019, the Minister of Agriculture, Forestry and Fisheries published regulations to the Agricultural Product Standards Act (1990) relating to the registration and protection of geographical indicators (GIs) used in respect of agricultural products intended for sale in South Africa.

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A cautionary tale of the man who cried “admin action”
5 June 2019 Dispute Resolution

A cautionary tale of the man who cried “admin action”

On 17 May 2019, the Supreme Court of Appeal (SCA) delivered its judgment in the case of Motala v The Master of the North Gauteng High Court, Pretoria (92/2018) [2019] ZASCA 60 (17 May 2019). The matter concerned an administrative review application of the Master’s decisions to remove Mr Motala as the joint provisional liquidator of seven companies forming the Pamodzi Group, as well as her decision to remove him from the panel of liquidators. The review application was dismissed in the Pretoria High Court and the matter was taken on appeal to the SCA.

REIT regime – now extended to new exchanges
5 June 2019 Corporate & Commercial

REIT regime – now extended to new exchanges

The South African Real Estate Investment Trust (REIT) structure is a listed property investment vehicle, similar to internationally recognised REIT structures, where a tax dispensation ensures a flow through of net property income to investors. A REIT is essentially a company that owns and operates income-producing immovable property.

Escape route: “Resignation with immediate effect”
3 June 2019 Employment

Escape route: “Resignation with immediate effect”

The latest case in the ‘disciplining employees who have resigned with immediate effect’ saga has brought about more uncertainty as to whether an employee who resigns with immediate effect shortly before a disciplinary hearing can avoid disciplinary action and subsequent dismissal. In Naidoo and Another vs Standard Bank SA Ltd and SBG Securities (Pty) Ltd (Case No: J1177/190 [Delivered 24 May 2019], the Labour Court ruled that an employer has no power to discipline employees who have been charged with acts of misconduct and dishonesty but who have resigned with immediate effect before the date of their disciplinary hearings. The correct way to proceed, according to the court, is to hold the employee to his or her contract by seeking an order for specific performance.

South Africa’s rising unemployment tide: An alternative model
3 June 2019 Employment

South Africa’s rising unemployment tide: An alternative model

According to the most recent figures released by Stats SA, the unemployment rate rose to 27.6% in the first quarter of 2019, up from 27.1% in the previous period. This is the highest jobless rate recorded since Q3 2017, as the number of unemployed went up by 62,000, to 6.2 million, and the number of jobs fell by 237,000 to 16.29 million. These distressing statistics are indicative of the inadequacies of the current labour model in combatting the ever-present battle against unemployment.

Surety by a spouse married in community of property –  Do I have to consent?
29 May 2019 Dispute Resolution

Surety by a spouse married in community of property – Do I have to consent?

Under the Roman Dutch common law, marriages were ordinarily in community of property and the husband was vested with the marital power. This caused the husband to deal with all the assets of the joint estate to the exclusion and without the consent of his wife. The marital power of a husband was abolished by the Matrimonial Property Act, No 88 of 1984 (Matrimonial Act

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Ensure your agents are compliant
31 May 2016 Finance & Banking

Ensure your agents are compliant

While banks doing business across Africa have to be careful with regard to their compliance with SA's Financial Intelligence Centre Act (Fica), they also have to be watchful to ensure that the other banks or agents with whom they engage are also complying with at least the same level of "knowing your customer" (KYC) as FICA requires of South African banks.

Labour Appeal Court finds against Amcu in long-running labour battle, but this is unlikely to be the last word on the matter
5 April 2016 Employment

Labour Appeal Court finds against Amcu in long-running labour battle, but this is unlikely to be the last word on the matter

An important decision by the Labour Appeal Court was made just last week to finally determine the long-running dispute between the Association of Mineworkers and Construction Union (Amcu), the Chamber of Mines and major gold producers. In finding against the appellant Amcu, the court supported the primacy of majority unions who engage in collective bargaining at the workplace.

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