Labour Law Section 197
Ensure that you make an appointment to meet with an experienced labour law attorney such as those in the caf labour law department prior to exercising any of the aforementioned provisions.
Labour law section 197. Transfer means the transfer of a business by one employer the old employer to another employer the new employer as a going. This article will also discuss the treatment of various types of employees during a section 197 transfer of business namely standard employees employees employed in terms of an outsourcing agreement and fixed term employees. Section 197 of the lra states that the contracts of employment of the existing employees are automatically transferred to the new employer subject to the provisions of the section.
Accordingly the applicant alleged that the agreement between the respondent and the new contractor constituted a transfer of a business as a going concern in terms of s 197 of the labour relations act 66 of 1995. In terms of section 197 of the labour relations act the lra the sale of a business as a going concern takes place subject to the provisions of the lra. 66 of 1995 as amended the act on employees and employers rights and obligations during the transfer of a business as a going concern.
Business to include the whole or part of any business trade undertaking or service. Section 197 of the labour relations act deals with the transfer of a business and the rights of employees affected by such a transaction. This section forces the new employer to take over all the labour related obligations of the old employer.
The applicant then applied to the labour court for an urgent declaratory order declaring that in terms of section 197 of the lra as amended. To what extent if any can employees be transferred from one employer to another in circumstances where an outsourcing arrangement is terminated with one service provider and another outsourcing arrangement for the provision of the same services is entered into with a new service provider. And transfer means the transfer of a business by one employer the old employer to another employer the new employer as a going concern.
Business to include the whole or part of any business trade undertaking or service. Section 197 of the labour relations act 1995 the lra was enacted to regulate the employment consequences where the whole or a part of a business or service is transferred as a going concern. The act in section 197 thereof deals with the transfer of a contract of employment and defines.
In terms of section 197 a business includes the whole or a part of any business trade undertaking or service. The respondent had become the employer of the employees previously employed in its emergency services department. Section 197 of the lra deals with complex and stringent provisions.