The transfer of enterprises and the protection of employment benefits in South and Southern Africa

21 Aug 2013

Introduction:The era of globalisation has brought sweeping change to the workplace. Transfers, mergers, outsourcing and an erosion of employment security have been among the consequences. In a country with an inadequate social security network, such as South Africa, many employees are cru~ dally dependent on employment-related benefits such as retirement funds and medical aid. If they lose their Jobs, they lose their benefits as well. This article deals with some of the Implications, from an employee's point of view, of the transfer of the transfer of a business. The Labour Relations Act," following European precedent,; provides for [he transfer of employees' contractual and other employment rights from the old to the new employer if a business is transferred as a "going concern". In addi• lion, the Constitution4 provides for the horizontal application of funda~ mental rights,~ thus creating scope for the enforcement of socio~economic rights as between employer and employee Employment benefits, it will be argued, fall into this category. Particular attention is given to retirement