The application of section 197 of the labour relations act 66 of 1995 on termination of service-level agreements

Abstract

Striking a balance between the rights of employees to fair labour practices, the primary objective of the Labour Relations Act1 to advance economic development which essentially entails ensuring job security versus employers’ rights to fair labour practices has caused a significant hurdle in the employment and industrial law arena. In an endeavour to bridge this gap, section 197 of the LRA was legislated to ensure the job security of the employees during the transfer of businesses by one employer to another, whilst also ensuring smooth transfer and stability of businesses during such transfers. Section 197 of the LRA suggests that employees are automatically transferred to a new employer in the event of a business being transferred as a going concern in accordance with section 197 of the LRA.2 1 66Thesis (LLM) -- Faculty of Law, School of Mercantile Law, 202