oa De Rebus - Transfer of a business, trade or undertaking

Volume 1999, Issue 380
  • ISSN : 0250-0329



Section 197 of the Labour Relations Act 66 of 1995 provides that where a business, trade or undertaking is transferred as a going concern certain consequences must be attached to that transfer - in particular that contracts of employment transfer from the old to the new employer (see subs 197(1)(a). In terms of subs 197(2)(a), unless otherwise agreed, all the rights and obligations between the old employer and each employee at the time of the transfer continue in force as if they were rights and obligations between the new employer and each employee.

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