Today's Labour News

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saa thumb medium95 76Moneyweb reports that the court battle between trade unions and the business rescue practitioners (BRPs) tasked with turning SA Airways (SAA) around could have serious implications for future business rescue proceedings generally.  

This after the Labour Court ruled that employees could not be laid off in the absence of a rescue plan.  The ruling is, however, being challenged.  In their submission for leave to appeal the ruling, BRPs Les Matuson and Siviwe Dongwana argue that the court’s interpretation of Section 136 of the Companies Act related to the responsibilities that BRPs have to employees during a business rescue is wrong.  The pair contend that the court in fact provided employees with more rights than is legally permissible, and in turn undermined the rights of the employer, in this case SAA.  “Prior to business rescue, the employees of a company were at risk of a fair dismissal for operational requirements.  Under the interpretation of Section 136 provided by the judgment, the employees are better off than before business rescue commenced,” the BRPs indicated in court papers submitted to the Labour Appeals Court on 15 May.  In their argument for leave to appeal, the BRPs state that preventing a financially-distressed company from reorganising the business pending the finalisation of a rescue plan will have “unintended deleterious consequences for business rescue which are disproportionate to the temporary protection of employees.”

  • Read the full original of the report in the above regard by Tebogo Tshwane at Moneyweb


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