The interpretation and effect of section 197 of the Labour Relations Act 66 of 1995

[摘要] ENGLISH ABSTRACT:Section 197 of the Labour Relations Act 66 of 1995 ensures the transfer of a contract ofemployment from an old employer to a new employer on the transfer of a business as agomg concern.Although section 197 is mostly based on European and British statutes and regulations,one should not rely on foreign provisions when interpreting section 197 without carefulconsideration. It is only when we understand the inherent limitations of applying theseprovisions, that they can be of any help to formulate definitions for the terms transfer,business and going concern.The two most important effects that section 197 has, is that it ensures the transfer of thecontract of employment and that it protects the terms and conditions of employmentwhen such a transfer takes place. Unfortunately, this section does not regulatedismissal on the transfer of a business. Section 197 also does not deal satisfactorilywith the transfer of contracts of employment on the transfer of an insolvent business.As a result of the above-mentioned and other shortcomings of the current section 197, itwas decided to amend the Act. The Labour Relations Amendment Bill 2000 reliesheavily on precedents from foreign law, but unfortunately it does not adequately addressall the current problems.

[发布机构] Stellenbosch University