28 October 2009

Employment Alert

A landmark judgement given in the Labour Appeal Court fundamentally changes the law relating to the employment consequences of outsourced services when a business is transferred to a new entity.

In its decision on AUSA obo Barnes & others / South African Airways
(Pty) Limited
, the Labour Appeal Court ruled in favour of "second
generation" outsourcing. It found that Section 197 of the Labour
Relations Act (LRA) contemplates not only first generation outsourcing
- where the business is transferred by the old employer to the new
employer - but also so-called second generation outsourcing.

The information and material published on this website is provided for general purposes only and does not constitute legal advice.

We make every effort to ensure that the content is updated regularly and to offer the most current and accurate information. Please consult one of our lawyers on any specific legal problem or matter.

We accept no responsibility for any loss or damage, whether direct or consequential, which may arise from reliance on the information contained in these pages.

Please refer to the full terms and conditions on the website.

Copyright © 2021 Cliffe Dekker Hofmeyr. All rights reserved. For permission to reproduce an article or publication, please contact us cliffedekkerhofmeyr@cdhlegal.com

You may also be interested in