n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - The legal obligation to provide for employee-related contingent liabilities when an enterprise is sold as a going concern

Volume 26, Issue 2
  • ISSN : 1015-0099
  • E-ISSN: 1996-2185



When a business or enterprise is disposed of as a going concern in South Africa, various issues arise in labour law. But a related tax issue is the deductibility of employee-related contingent liabilities for the purposes of income tax under sections 197 and 197A of the Labour Relations Act (LRA). In terms of section 197, employers must provide for and pay employee-related contingent liabilities when transferring a business as a going concern.

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