When debt disables: Evaluating financial distress as incapacity or defence in employment law
When debt disables: Evaluating financial distress as incapacity or defence in employment law
Podcast
When debt disables: Evaluating financial distress as incapacity or defence in employment law
Podcast
Malesela explains that many employees are financially overstretched, which negatively impacts productivity, attendance, and overall workplace performance. This growing issue is linked to rising living costs, inflation, and wage pressures.
From a legal perspective, Malesela adds that employment law considers how such financial stress affects workplace behaviour. While not the sole cause of poor performance, over-indebtedness has become a key factor.
Malesela explains that although the Labour Courts haven’t ruled directly on this issue as a valid defense, Malesela notes it could fall under incapacity, particularly where financial stress leads to psychological distress or ill health.
Click here to listen to the interview.
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