
Fraud unravels all, including contracts of employment
The insidious effect of fraud permeates the entire legal system. This is because it renders contracts voidable at the instance of the innocent party; is a crime; excludes the effects of an ouster clause in legislation; and nullifies a contractual exemption clause which purports to exclude a party from the consequences of fraudulent conduct. Its effects are therefore far-reaching. This was recently illustrated in Umgeni Water v Naidoo and Another (11489/2017P) [2022] ZAKZPHC 80 (15 December 2022), in the context of employment relationships.