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Articles Published by Eversheds


The Money or the Box – Getting Competition Rules Straight – South Africa

The rules that your business needs to know about promotional competitions in terms of the Consumer Protection Act 68 of 2008 (the Act). There are lots of ways for businesses, both big and small, to market and promote their enterprises. Advertising, free giveaways and competitions promoting new and/or existing products are among the more popular methods of putting a business name on the map.

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The Doctrine of Subrogation and Medical Aid Schemes - South Africa

The English doctrine of subrogation has been imported into the South African common law. The doctrine has, over the years, become a well-entrenched principle of insurance law, yet its applicability to areas of law other than that of insurance law has received little judicial attention. This article seeks to determine whether the doctrine of subrogation, which finds its application in specific circumstances, is applicable to medical aid schemes.

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Easing Exchange Controls - South Africa

The Current Process of Gradual Relaxation - It is stated policy of National Treasury and the South African Reserve Bank that exchange control should not be abolished overnight but that gradual relaxation should attend to any pent up demand over a period. Gradual relaxation, accordingly, means that a limit is firstly introduced and then gradually increased until it is possible to consider the abolishment of exchange control altogether.

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Employers’ Rocky Road to Justice - South Africa

In most cases employment contracts are breached by employers giving rise to litigation by employees. In response to such breaches of contract, employees will seek a remedy of reinstatement or compensation. The quantum of damages claimed for by an employee is easy to determine as it will usually be based on the employee's salary. But can the employer sue the employee for damages resulting from breach of contract by the employee?

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The Labor Amendment Bills – South Africa

During March 2012 Cabinet approved amendment bills for the Labor Relations Act (LRA) and the Basic Conditions of Employment Act (BCEA). These draft bills have already given rise to much debate in the media.

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Sometimes Being an Expert Doesn’t Help – South Africa

Rule 36 of the Supreme Court Act 59 of 1959 makes provision for the calling of a witness to give evidence as an expert within a particular field. Such a person may only give evidence as an expert witness, if notice of the intention to do so is given within 15 days before the hearing. A summary of such expert's opinion and his/her reason therefore must be delivered not less than 10 days before the trial.

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Not Just a Walk in the Park – South Africa

"Lion Attack!" is just one headline in the recent months that has hit newspaper stands. Remember the 28-year-old man and his wife who were at the Lion Park, just north of Johannesburg for their anniversary, when a lioness grabbed hold of his car seat and proceeded to claw her way into their vehicle? The lioness bit the man on his right forearm before he managed to wrestle her out of the vehicle. Apparently his car window was open at the time.

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“Strictly” Speaking – South Africa

To be held "strictly liable", what exactly does this mean? The legal definition is "liability incurred for causing damage to life, limb or property by a hazardous activity or defective product, without having to prove that the defendant was negligent or directly at fault". Now for the follow up question, how is this relevant in the world of product liability?

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The NCA and “Large” Agreements – South Africa

In the matter of Silver Falcon Trading 333 (Proprietary) Limited v Nedbank Limited 2011 SACLR 44 (KZP), the court ruled on the application of the National Credit Act (34 of 2005) to large agreements concluded with consumers who are juristic persons.

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Keeping State Secrets - South Africa

In President of the Republic of South Africa and Others v M & G Media Ltd 2012 (2) BCLR 181 (CC) the Constitutional Court set out the circumstances under which courts should invoke s80 of the Promotion of Access to Information Act to take a “judicial peek” at state records.

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Nationalization v Beneficiation - South Africa

The boxing gloves are off in the mining industry and everyone is singing the nationalization versus beneficiation song, but what does all this mean to the ordinary business person? South Africa is rich in natural resources as it possesses nearly 90% of the platinum metals, 80% of the manganese, 73% of the chrome, 45% of the vanadium and 41% of the gold on earth.

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To Subpoena or Not to Subpoena an Expert? - South Africa

The use of expert testimony in litigation has become commonplace in our courts today. The question that was posed recently to us is whether or not expert witnesses should be subpoenaed to testify. In order to answer this question, we firstly have to examine the definition of an expert witness. The expert witness is a witness who qualifies himself as an expert in a clearly defined field.

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Labor Brokers Escape the Axe - South Africa

In December 2010, the Minister of Labor, Mildred Nelisiwe Oliphant, published the proposed amendment bills to the Labor Relations Act (LRA) and the Basic Conditions of Employment Act (BCEA) for public comment. The department received comments from several individuals and organizations, mainly focusing on the issue of the proposed ban of labor brokers.

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Keen Debate on Mooted Changes to Labor Laws – South Africa

On 17 December 2010, Minister of Labor Mildred Nelisiwe Oliphant published the proposed amendment bills to the Labor Relations Act and the Basic Conditions of Employment Act for public comment. The department received comments from several individuals and organizations, mainly focusing on the issue of the proposed ban of labor brokers.

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The CPA and Business Name Registration - South Africa

Individuals and corporations have always traded freely under a variety of Trading As names. But under the new Consumer Protection Act, you will now be forced to register all trading names as business names as well. In the future you will only be able to operate using:

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Compensation Possible for Unfair Dismissal

The Labor Relations Act sets out limitations to the amount of compensation an employee can receive for being unfairly dismissed or for being the victim of an unfair labor practice. The compensation limits for a dismissal will depend on whether the dismissal is classified as being "automatically unfair" or not.

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SA Opt-out, EU Opt-in

On 10 October 2011, the European Union (EU) tightened its policies protecting consumer rights. In terms of the new EU Consumer Rights Directive, consumers' rights have been strengthened in all 27 EU countries by including a provision banning pre-ticked boxes on websites.

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Food Law Know-how - Part 6: Spam and the CPA

South African laws in the past have always been less strict on direct emailing than those of the US and Europe. Prior to the implementation of the Consumer Protection Act 68 of 2008 (CPA) in South Africa, it was legal to send unsolicited emails provided that:

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Funds, Serious Funds

Subsequent to the amendments of the Road Accident Fund Act (56 of 1996) the judiciary is slowly making headway into the interpretation and application of the Regulations, specifically those pertaining to general damages, as governed by s17(1A). There are already crucial implications for the Fund and for practitioners.

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Do Refugees have a Right to Healthcare?

Chapter 2 of the Constitution contains the Bill of Rights. Included in this chapter is the right to healthcare. Yet refugees in South Africa are often being refused medical care and services by government clinics and hospitals. The question that needs to be answered is whether this is lawful under our Constitution and the resulting legislation.

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Bringing the Hammer Down on Bidding Requirements

Breaking stories in the news over the past week have placed the auctioning business under a spotlight. In the past there weren’t many laws directly governing auctioning and it was a substantially unregulated industry in South Africa. However, with the advent of the Consumer Protection Act 68 of 2008, which became effective on 1 March 2011, the auction business was squarely brought within the ambit of the legislature.

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Do Not Contact Me!! Spam and the Consumer Protection Act

In the past, South African laws have always been less strict on direct emailing than those of the US and Europe. Prior to the implementation of the Consumer Protection Act 68 of 2008 (CPA), it was legal to send unsolicited emails provided that:

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To Combat Over Indebtedness

The Credit Industry Code of Conduct arose out of discussions of the National Debt Review Task Team and is aimed at improving the debt review process to combat over-indebtedness. All persons currently registered and those which wish to register with the NCR as credit providers will have to acknowledge and comply with the Code as an integral part of the conduct by it of its business.

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Overbooking: Your Legal Rights

Accommodation booked, your itinerary perfectly planned, bags are packed and you are ready to go. You rush to the airport and the assistant behind the counter says to you in the most polite manner, "I am sorry, but the flight is full". You begin to argue, however, to no avail as there is "unfortunately, nothing that can be done". Sound familiar? For most of us, we or someone we know, has been the victim of a scenario similar to the one played out above.

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Business as Usual for Close Corporations

One of the main objectives of the new Companies Act is to promote the development of the South African economy by simplifying the formation and maintenance of a company, and by doing so, facilitating the formation of a small private company comparable to a close corporation. For this reason, since 1 May 2011, the formation of new close corporations is no longer possible.

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Know Your Rights about UIF

The purpose of the Unemployment Insurance Act 63 of 2001 is to provide financial assistance to employees who find themselves jobless. The act also provides for financial assistance to unemployed persons due to illness, maternity and adoption. An employee must be a contributor, able to prove to the unemployment insurance commissioner that he and his employer have contributed to the IF on a monthly basis.

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When is a Worker a Deserter?

Employers must prove employee’s intention to abscond. The Labor Court has recognized that the employee's general duty is to render a service to the employer, and that failure to discharge that duty could potentially lead to disciplinary action. If an employee is absent for several days from work without communicating his or her absence to the employer, the assumption is often made by the employer that the employee has absconded.

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Liability of a Surety

The implementation of Chapter 6 of the Companies Act (71 of 2008) has been challenging to say the least. One of the vexed and difficult questions to answer is the extent of liability of a surety for the debts of the company in business rescue and how this ought to be dealt with in business rescue plans.

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Resolutions of Directors

Historically it has been commonplace for board resolutions, produced for the purposes of ordinary transactions or for litigation, to signed only by the company secretary or by the chairperson of a company. In terms of s66 of the Companies Act (71 of 2008), the business and affairs of the company must be managed by and under the direction of its board.

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Avoiding the Sesquipedalian Trap

Over the past few years, even prior to the implementation of the Consumer Protection Act (68 of 2008) (CPA) coming into force, there has been a steady move away from the more formal use of language in the commercial legal environment towards the more "fashionable" use of simpler, colloquial language.

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Private Arbitration Removes Choice in the Court’s Review Test

Alternate dispute resolution has long been established in employment law. The Ministerial Legal Task Team which highlighted the main innovations in the present Labor Relations Act, 1995 also placed great emphasis on alternate dispute resolution. While the vast majority of employment disputes continue to be resolved by way of compulsory statutory arbitration, this form of arbitration often gives way to consensual private arbitration.

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Liquidators and the Voetstoots Principle

A voetstoets clause in a sale agreement effectively declares to the purchaser of goods that the goods are to be sold "as is" and without any undertaking of quality. The voetstoets clause will protect a seller who knows of a latent defect in the merx but does not disclose it, unless he concealed it with the intention of defrauding the buyer (Van der Merwe v Meades 1991 (2) SA 1).

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Expert Evidence

It has been argued that there are issues which simply cannot be decided without expert guidance. Expert opinion evidence is therefore readily received on issues relating to, inter alia, ballistics, engineering, chemistry, medicine, accounting and psychiatry. The question that, however, poses itself is whether expert evidence is in all circumstances necessary.

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Food Law Know-how - Part 5: Standard Terms and Conditions

The Consumer Protection Act is predominantly focused on affording consumers the right to fair, just and reasonable terms and conditions (e.g. fair contract terms) and the right to fair value, good quality and safety (e.g. product liability).

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Do Not Contact Me!

South African laws in the past have always been less strict on direct emailing than those of the US and Europe. Prior to the implementation of the Consumer Protection Act 68 of 2008 (CPA) in South Africa, it was legal to send unsolicited emails provided that:

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To Bequeath or Not

Intention is the Key - In the case ITC 1835 the Tax Court in Kimberley deliberated on whether a debt due to a deceased estate had been discharged for no financial consideration and was therefore subject to Capital Gains Tax (CGT) on the full value of the claim in terms of paragraph 12(5) of the Eighth Schedule to the Income Tax Act.

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The Evil Triplets and the Mining Industry

In a speech delivered on 2 August, Minister of Mineral Resources, Susan Shabangu, gave a stern warning to the mining industry when she indicated that the Department of Mineral Resources (DMR) is serious about the implementation of measures to address the “evil triplets of poverty, inequality and unemployment” faced within the communities where mining operations are conducted.

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The House Shouldn’t Always Win

The National Lottery Board (NLB) holds in trust approximately R6 billion which it has accumulated over the last three years. Given that the NLB is now declining applications from charitable institutions based on "budgetary constraints", the duties of the NLB and their fulfillment need to be examined.

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Consequences of Liberating the Limitation

When the Constitutional Court declared that sections 18(1)(a)(i), 18(1)(b) and 18(2) of the Road Accident Fund Act 56 of 1996 (the old Act) were unconstitutional (Mvumvu and Others v Minister of Transport and Another 2011 (5) BCLR 488 (CC)), they suspended the order for a period of 18 months to enable Parliament to cure the defect.

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Ranking of Administration Costs of and Claims against a Company in Liquidation Post Business Rescue

It is inevitable that a significant number of business rescue proceedings will fail and that the company under business rescue will be placed in liquidation. It is important for all affected parties, and in particular all classes of creditors, to know where they stand in regard to the recovery of their claims against the company if it is placed under busiess rescue, and if business rescue fails, if (or rather when) the company is thereafter placed in liquidation.

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South African Courts – The Continuing Trend in Business Rescue Judgments

In a previous article, I commented on the trend in South African courts that the judges are saying that there must be a detailed, proposed business rescue plan before any application for business rescue will be granted. This trend was reinforced by a judgment in the Western Cape High Court, Cape Town under case number 24850/2011. The judgment was delivered on 9 December 2011 by the Honorable Mr. Justice Binns-Ward.

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South African Courts – Establishing a Trend in Business Rescue Judgments

The first case relating to Chapter 6 of Act 71 of 2008 (the Act), being the business rescue chapter, was decided by the Honorable Makgoba J in the North Gauteng High Court (case 26597/2001 – Riaan Swart as applicant and Beagles Run Investments 25 (Pty) Ltd and others as respondents). In paragraph 16 of the judgment Makgoba J quoted the preamble to the Act as follows: "to provide for efficient rescue of financially distressed companies."

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Can a Creditor's Ranking in Terms of the Insolvency Act be Negatively Affected by a Business Rescue Plan?

In this article the author considers whether the creditors of a company, which is placed under business rescue, can lose the ranking status bestowed on them in terms of sections 95 to 103 of the Insolvency Act 24 of 1936 (the Insolvency Act).

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Suretyships and Business Rescue

When a company is placed under business rescue, the question arises as to the enforceability of a suretyship given for the debts of or by the company. As far as the company itself is concerned, the question is easily answered. Section 133(2) of the Companies Act 71 of 2008 (the Act) provides that:

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Expert Evidence

It has been argued that there are issues which simply cannot be decided without expert guidance. Expert opinion evidence is therefore readily received on issues relating to, inter alia, ballistics, engineering, chemistry, medicine, accounting and psychiatry. The question that, however, poses itself is whether expert evidence is in all circumstances necessary.

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Usury Law in South Africa: Financial Institutions can Breathe a Sigh of Relief

People have been borrowing money from credit institutions for decades and in turn the law regulating the claiming of interest has been around for decades. The lender has sought to create a business whereby it can make money on the interest owed to it, which in turn could mean the exploitation of millions.

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Creditors’ Rights with Regards to Prescription

There are two kinds of prescription namely acquisitive and extinctive prescription. In terms of the Prescription Act 68 of 1969 acquisitive prescription is the acquisition of ownership by the possession of another person's movable or immovable property continuously for thirty years. Extinctive prescription is the rendering unenforceable of a right by the lapse of time. The article will focus on extinctive prescription.

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Application of Voetstoets Principle and the CPA to Sale of Assets by Liquidators

This article considers the application of the voetstoets principle under the law of insolvency, particularly in the light of the Consumer Protection Act 68 of 2008 (CPA).

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Business Rescue and Thresholds for Small Businesses

Regulation 127(1)(b) promulgated under the Companies Act 71 of 2008 (the Act) states that companies which are undergoing business rescue proceedings are classified into three groups, namely, large, medium and small companies.

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The Variety of Skills Required of a Good Business Rescue Practitioner

The Companies Act 71 of 2008 (the Companies Act) has brought about a unique change in business methods. One of the innovations is the introduction of the concept of business rescue and the appointment of a business rescue practitioner (the practitioner).

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That "Scorro-corro" could Cause More Harm than You Thought

So, you are running late for work and the only taxi that stops for you is one that has had its steering wheel replaced with a spanner. Or the exhaust of that bus falls off right as you watch the doors closing behind you. Sounds like a horror movie? Well, often having to take public transport can be, and yet some 63% of the South African population takes part in this reality on a daily basis.

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To Sue in Contract or in Delict?

There has been a longstanding debate in South African law on whether to sue in contract or delict when dealing with professional negligence matters. The line of division on whether to sue in contract or delict is not always easily drawn. This principle will be discussed in relation to the recent case of Chibage v Ndawana (2010) JOL 26225 (ZH).

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General Damages ….in General

General damages is the broad term given to non-pecuniary loss such as pain and suffering, loss of amenities, emotional harm, etc and is awarded to a plaintiff as part of a compensatory damages to cover all those losses which are not easily quantified as opposed to pecuniary damages, i.e. damages for harm to one's personality and physical integrity.

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Private or Public Hospitals - Who Cares?

The general perception among members of the public is that private hospitals provide better care. This assumption is premised on the comfort provided in private hospitals, their cleanliness, and the costs associated with the treatment offered at such institutions. Private hospitals promote this perception with clever marketing and public relations campaigns, where they advertise their newly bought equipment and high standards of care

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Unions Carry Liability over Behavior of Strikers

Any strike action that members of a trade union embark on has to comply with statutory requirements as set out in the Labor Relations Act.

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It is Not Compulsory for an Employer to Pay a 13th Check to its Employees

As the year comes to an end, many employees will be expecting payment of a 13th check or Christmas bonus from their employer.

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Duty to Protect?

An employee has a right not to be subjected to racial discrimination in the workplace. Failure by an employer to eliminate racist conduct in the workplace is unlawful.

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Power Play and Strikes

Can a union or employer resort to power play to resolve a wage dispute after negotiations have broken down?

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Best Practices for Your Marketing

Know your customers’ rights, and protect your business…

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REFIT – Gone With the Wind?

South Africa's electricity supply industry is still heavily reliant on coal-fired electricity production. Currently 88% of the country’s supply of electricity is generated by coal-fired power stations. In terms of the Department of Energy's Integrated Resource Plan 2010 – 2030, the coal-fired generation capacity is to be reduced to 48% of the total production capacity by 2030.

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Reviewing the Debt Review Process

During 2010 the National Credit Regulator together with various stakeholders in the credit industry, appointed a task team particularly to investigate the debt review process and to consider and formulate proposals to address problems identified in the debt counseling process pursuant to that investigation.

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Read This Before Becoming a Company Director - South Africa

The duties of directors are primarily determined by common law, the new Companies Act (71 of 2008, the shareholders agreement and the memorandum of incorporation of the company, service agreements (specifically concluded between the director and the company) and resolutions passed at members’ or directors’ meetings.

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Property Lease Agreements – Are They or Aren’t They? - South Africa

The Consumer Protection Act (68 of 2008) has introduced a new era of substantially improved consumer rights for those doing business in South Africa.

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Alcoholism – Misconduct or Incapacity? - South Africa

The Labor Court in March 2011 in an as yet, unreported judgement of Transnet Freight Rail v Transnet Bargaining Council & Others, set out some extremely useful guidelines in determining whether to treat alcoholism as misconduct or as incapacity particularly in light of Schedule 8.

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Unmask the Ugly Face of Racism in the Workplace - South Africa

Does an employer have a duty to protect its employees against racial discrimination in the workplace?

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Benefits to Creditors of Business Rescue - South Africa

The express intention of the legislature and policy makers in introducing the business rescue legislation is to make the insolvency regime friendlier to debtors. Nevertheless, if one looks more closely, there are a number of elements to the new legislation which suggest that the new business rescue regime may be more friendly to creditors than the present liquidation paradigm.

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Business Rescue Plan – How Best It Should Be Structured - South Africa

The business rescue plan (the plan) must be published by the business rescue practitioner (BRP) within 25 business days after the date on which the BRP was appointed or such longer time as may be allowed by the court on application.

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Food Law Know-how: How Fixed Is a Fixed Term Consumer Agreement - South Africa

The Consumer Protection 68 of 2008 (the Act) regulates, among other things, the fixed term agreement. A fixed term agreement is an agreement that is stipulated to endure for a particular amount of time. Common examples are cell phone contracts, gym contracts and many other subscription type agreements.

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Employers Can Act over after Hours Misconduct - South Africa

Can an employee be dismissed for misconduct committed after hours and away from the workplace?

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Ramifications of Section 129(7) of the Companies Act 71 of 2008 - South Africa

The board of a company may resolve that the company begins business rescue proceedings and places the company under supervision (section 129(1)). In order to do this, the board must have reasonable grounds to believe that the company is financially distressed and there appears to be a reasonable prospect of rescuing the company.

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Notification of Business Rescue Proceedings to Affected Parties under the New Companies Act 71 of 2008 - South Africa

The philosophy behind the business rescue provisions in Chapter 6 of the new Companies Act is to give the distressed company “a breathing space” while affected parties (creditors, shareholders and labor) work towards a rescue plan for the distressed company. This article examines who the affected parties are and how they must be notified.

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Business Rescue vs the Deregistration of Companies - South Africa

In terms of the new Companies Act 71 of 2008, business rescue is defined as the proceedings to facilitate the rehabilitation of a company that is financially distressed.

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Benefits of Insolvency Inquiries and How to Convene Them - South Africa

Insolvency inquiries are beneficial to the general body of creditors of a company. It is by conducting such inquiries that liquidators are able to determine what the assets and who the creditors and contributories of a company are. It also allows them to properly investigate doubtful claims against outsiders as well as claims against the company and/or its directors before or while pursuing them.

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Pitfalls of Insolvency Inquiries into the Affairs of Close Corporations - South Africa

A close corporation may be wound up either by means of a voluntary winding up by written resolution of its members, or a compulsory winding up by an order of court.

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Remedies for Deregistrations: Old and New Companies Act - South Africa

The effect of the deregistration of a company is that the company ceases to exist. Section 83 of the new Companies Act states that a company is dissolved as of the date its name is removed from the companies’ register. With the commencement of the new Companies Act, the old Companies Act has been repealed. Can a company that was deregistered in terms of the old Act be reinstated in terms of the new Act?

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Interpretation of Business Rescue Provisions - South Africa

The provisions of Chapter 6 of Act 71 of 2008, being the business rescue provisions, are both interesting and controversial. The question is, how will our courts deal with the provisions of the Act? The first written judgment to hand involves the matter of a company by the name of Beagles Run Investments 25 (Pty) Ltd (Beagles Run).

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Controlling Administration Fees - South Africa

Trustees of pension funds have been in the news of late for the wrong reasons – investments gone awry. One of the ways in which trustees can reduce the risk of this happening is by the appointment of expert investment administrators. But if they do so, how much should administrators charge for the services they render?

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Chaos - South Africa

In The Star’s Business Report of Monday 11 July 2011, financial journalist Ann Crotty reported on the chaos that is being experienced with the registration and deregistration of companies and close corporations at the office of the newly established Companies and Intellectual Property Commission (CIPC). Unfortunately the early indications are that the CIPC is treading the same path as its predecessor, the Companies and Intellectual Property Registration Office (CIPRO).

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Don’t Slate Your Boss on Facebook - South Africa

Can an employee criticize his employer on Facebook and get away with it?

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Is It the End of the Road for Labor Brokers? - South Africa

The government has proposed amendments to the labor laws of the country. The proposed amendments are in respect of the Labor Relations Act 66 of 1995 (LRA), the Basic Conditions of Employment Act 75 of 1997 (BCEA) and the Employment Equity Act 55 of 1998 (EEA). In addition, there is the proposed introduction of the Employment Services Bill.

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Tenants’ Rights - South Africa

As our common law stands, transfer of ownership of immovable property automatically transfers an existing lease of the property concluded with the previous owner, to the new owner as landlord. The tenant is not entitled to resile from the lease agreement when his previous landlord is substituted by the new owner. The tenant may, however, have legitimate reasons to object to the application of this common law rule, on the basis of the protection afforded by our Constitution.

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Combatting Over Indebtedness - South Africa

The Credit Industry Code of Conduct (the Code) is aimed at improving the debt review process in line with the commitment of the National Credit Regulator (NCR) to combat over indebtedness. It came into effect on 1 January 2011 and arose out of discussions of the National Debt Review Task Team. All those currently registered and those who wish to register with the NCR as credit providers will have to acknowledge and comply with the Code.

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Interpreting Law; Not Making It - South Africa

This article explores the interpretation of statutes primarily in light of the recent SCA decision of South African Airways (Pty) Ltd v Aviation Union of South Africa & Others (2011) 32 ILJ 87 (SCA). While the matter concerns an employment-related issue the lessons to be drawn from the judgment are equally applicable to other disciplines.

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Think Before You Text - South Africa

In this era of technology in which we live, it is common for communications between employers and employees to take different, non-traditional forms. However, until recently it was generally accepted that, when an employee resigned, the resignation had to be done using more traditional methods of communication, such as a letter. But recent case law has established that a valid resignation can occur via SMS.

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Some Commission Tactics Viewed with Distaste by the Bench - South Africa

Various recent decisions of the Competition Tribunal, Competition Appeal Court (CAC) and Supreme Court of Appeal (SCA) have sparked both criticism and favorable comment from practitioners and the competition authorities alike. In all of these decisions, complaints referred to the Tribunal by the Competition Commission (the Commission) were dismissed because of the Commission's non-compliance with the formal requirements of the Competition Act.

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Food Law Know-how - Part 3: The Product Liability Chain - South Africa

The Consumer Protection Act 68 of 2008 (CPA) sees the introduction of new legislation which consolidates the rights of consumers and attempts to promote a fair, accessible and sustainable market place for consumer goods and services.

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Termination of Employment - South Africa

It is common and regularly encountered, in commerce, that parties terminate the employment relationship by agreement. Prudent employers always conclude written agreements, in such circumstances.

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Resignation by an SMS is Legally Acceptable - South Africa

In this era of technology, it is common for communications between employers and employees to take different non-traditional forms.

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Discovery in the Digital Age - South Africa

With the introduction of digital media, discovery has become a much more complex process. Have the South African legal system and South African litigants adjusted and are they making proper discovery in the digital age?

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Combating Identity Fraud - South Africa

For many years, South Africans have been victim to fraudulent identity document scams. Why are these so prevalent in our society and how do so many people get away with such fraudulent behavior with seemingly relative ease?

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What’s in the Name a Business Trades by? - South Africa

Two years after it was signed by former President Kgalema Motlanthe, the new Consumer Protection Act is taking effect this April. The act will radically transform the way business is done and companies will have to make sure they adhere to this complex system of protections, which includes trading under registered names only.

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Food Law Know-how - Part 2: Package Your Product - South Africa

In the first part of this series we discussed the legislation as it applies to labeling and advertising. In Part 2 we are looking at things to consider when packaging products in South Africa.

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Food Law Know-how - Part 1: Labeling and Advertising - South Africa

In this two part series we will examine the legislation that regulates the manufacture and supply of foodstuffs as well as product registration, labeling, composition of foodstuffs and the restrictions on certain nutrients in foodstuffs in South Africa.

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Law Could Mean the End of Labor Brokers in 3 Years - South Africa

The government has proposed amendments to the labor laws of the country. The proposed amendments are in respect of the Labor Relations Act 66 of 1995 (LRA), the Basic Conditions of Employment Act 75 of 1997 (BCEA) and the Employment Equity Act 55 of 1998 (EEA).

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Making the State Pay for Its Misdeeds - South Africa

S3 of the State Liability Act 20 of 1957 was declared unconstitutional in Nyathi v Member of the Executive Council for the Department of Health Gauteng and Another 2008 (5) SA 94 (CC). The issue arose when Nyathi challenged s3 of the Act, which prohibited the attachment of state property in order to satisfy a judgment debt.

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Before You Sign That Contract - South Africa

Which contractual oversights most often lead to serious problems down the line for franchisees?

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Implementation of the Consumer Protection Act - South Africa

The transitional provisions are set out in Schedule 2 to the CPA. These provisions are designed to bring the CPA into law in an incremental process specifically designed to allow all those affected by the CPA to ensure that they are fully compliant with its provisions at the point at which it becomes entirely applicable.

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Damaging Character References Damages! - South Africa

It is not unusual for job advertisements to request the prospective job applicants to provide character references. It is also common practice for CVs to include the names and contact details of people who may be contacted to discuss the good qualities of the job applicant. Often prospective employers will contact the former employer of the job applicant to obtain a character reference. The problem arises where the former employer provides a negative or damaging character reference.

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Ambiguity over Employee Transfers - South Africa

There are instances in the workplace when certain operations undertaken by the business of the employer become commercially unprofitable or difficult to manage.

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South African Law Protects Those with HIV

December 1 is the date chosen to mark World Aids Day. The day encourages people to deal with prejudice and to create awareness about HIV.

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When Your Offer of Employment Is Revoked before You Start the Job - South Africa

For the majority of people, once they’ve received an offer of employment and have accepted it, the next step is to start work with their new employer. Occasionally, however, individuals will find themselves in the unfortunate position where an offer of employment is revoked before they even report for their first day of work.

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Recent Amendments to South African Exchange Control Limits and Policy

As a result of the further steps in the liberalization of South African Exchange Controls announced by the Minister of Finance in the 2010 Medium Term Budget Policy Statement, the Financial Surveillance Department implemented the following amendments to exchange control limits and policy:

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Fixing Price Fixing - South Africa

The Competition Commission in South Africa has been investigating allegations of price collusion in the food industry for several years, with specific focus on the wheat and maize milling industry and the bread and milk production industries.

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Voetsak to Voetstoots - South Africa

The advent of the Consumer Protection Act (the Act) will have a material impact on those common clauses found in property sales agreements and/or other sale agreements commonly known as a “voetstoots” clause.

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A Section 58 Consent to Judgment Can Be Enforced - South Africa

The National Credit Act 34 of 2005 (NCA) has found application in all spheres of legal practice and in court procedure.

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Dismissals Based on Operational Requirements - South Africa

Section 189 of the Labor Relations Act 66 of 1995 provides for dismissals based on operational requirements. It requires an employer to consult with any person where a collective agreement exists. If there is no collective agreement, the employer must consult with a workplace forum and any registered trade union whose members are likely to be affected.

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Thin Capitalization - South Africa

In the Taxation Laws Amendment Bill 2010, tabled before Parliament, section 31 of the principal Act will be wholly replaced. This new section will come into operation on 1 October 2011.

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Employee Share Schemes - South Africa

The provisions of section 8C, that stipulates which equity instruments acquired by an employee will be subject to income tax, have been expanded to cover any "restricted equity instrument" acquired by that employee or director from the company or an associated institution, or any person employed by or that is a director of that company.

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Staff Can Sue Bosses for False Testimonials

It is not unusual for job advertisements to request the prospective job applicants to provide character references. It is also common practice for CVs to include the names and contact details of people who may be contacted to discuss the good qualities of the job applicant.

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Exchange Control Voluntary Disclosure Programme

In the Budget Speech of 17 February 2010, the Minister of Finance announced a Voluntary Disclosure Programme, that will exist for a period of 12 months as from 1 November 2010 and which is aimed at encouraging tax payers to come forward to disclose possible tax defaults and to regularise their tax affairs.

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High Fines in Money Laundering - South Africa

The South African anti-money laundering laws are contained in the Prevention of Organised Crime Act (POCA), the Financial Intelligence Centre Act (FICA), and the Prevention and Combating of Corrupt Activities Act (PACCA).

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The Product Liability Chain - South Africa

The Consumer Protection Act (the Act) is particularly far reaching, extending to almost all areas of supply of goods and services in South Africa. Suppliers must accordingly endeavour to familiarise themselves with the provisions of the Act so that they are aware of the extent of their potential liability as well as the nature and extent of compliance required by the particular supplier.

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South Africa: Suspicious Transaction Reports in the Context of Money Laundering

The South African anti-money laundering laws are contained in a number of statutes, more specifically: • The Prevention of Organized Crime Act which came into operation on 21 January 1999. • The Financial Intelligence Center Act which came into operation in February 2002. • The Prevention and Combating of Corrupt Activities Act which came into operation in April 2004.

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Insurance Coverage Relating to Product Liability in South Africa

During October 2010 the South African Consumer Protection Act will come into force and effect. The act will have a dramatic change on the current position in South Africa relating to product liability, as consumers will be able to exercise their rights under the no-fault product liability provisions.

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Act Enforces Right to Fair Labor Practices - South Africa

The Basic Conditions of Employment Act (BCEA) sets out to regulate the right to fair labor practices in terms of section 28 of the Constitution.

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Liability of the Supplier in Terms of the Consumer Protection Act - South Africa

The Consumer Protection Act (the act) is particularly far reaching, extending to almost all areas of supply of goods and services in South Africa. Suppliers must accordingly endeavor to familiarize themselves with the provisions of the Act so that they are aware of the extent of their potential liability as well as the nature and extent of compliance required by the particular supplier.

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Imprisoned Employee Can Be Dismissed - South Africa

Before the Labor Appeal Court decision of Samancor Tubatse Ferrochrome v MEIBC, an employer could not dismiss an employee, who was imprisoned for non-work related reasons, on the basis of incapacity.

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Chapter 6 of the South African Companies Act 71 of 2008 Reviewed

South African Law has been based on a "creditor friendly approach". Inevitably, in terms of the creditor friendly approach the prospect of corporate rescue thinking does not exist and the emphasis is on liquidation and protection of the rights of creditors.

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Sexual Harassment by a Non-employee - South Africa

Section 3 of the Code of Good Practice on the Handling of Sexual Harassment Cases defines sexual harassment as the “unwanted conduct of a sexual nature”.

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Whose Water Is It Anyway? - South Africa

Egypt, Sudan and South Africa have adopted a dangerous approach of ignoring the rights of their downstream neighbors. Water represents a serious constraint to economic growth in southern Africa unless the Department of Water Affairs allocates and manages duty – at the cost of its neighbors.

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New Tack Needed for Water Woes - South Africa

The freshwater resources of a nation are a valuable commodity and are a critical input for economic development.

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In South Africa - What’s Yours is Mine ... or Is It?

Is there any law which regulates living with your partner out of wedlock? Currently a domestic partnership bill has been published for comment; however, it has not come into force yet. This bill makes provision for a partner in a "domestic partnership" to be able to claim maintenance as well as a portion of the movable and immovable assets of the other partner upon the termination of the partnership.

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Don’t Hide Material Facts About your Past From your New Boss

Often an employee, who has been charged with misconduct and was found guilty and subsequently dismissed, will wittingly or unwittingly fail to inform their new employer that their services were terminated due to misconduct.

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Various Options Available over Harassment - South Africa

The Employment Equity Act, 1998, places a high responsibility on an employer when an employee is sexually harassed by another employee. There is no obligation placed on the employer where the harasser is not an employee.

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Exercising Rights without Fear - South Africa

An employment relationship entails two distinct primary obligations for parties involved. The employee’s primary obligation is to place services at the employer’s disposal, while the employer’s obligation is to remunerate the employee for services rendered. However, it cannot be denied that the bargaining power between an employer and an employee is by its nature unequal.

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Does an Employee Have a Legitimate Expectation of a Promotion? - South Africa

The question relating to the promotion of an employee often arises in the workplace, but there is not much understanding of the legal implications surrounding an employer's decision to promote or not to promote an employee.

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Withdrawing a Matter from the Labor Court - South Africa

In cases where an applicant has initiated application proceedings in the Labor Court and, after the respondent has entered a notice of intention to oppose as well as an answering affidavit to the founding affidavit, does not file a replying affidavit or have the matter set down for hearing, the respondent may apply to have the matter dismissed.

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When Will a Medical Certificate Suffice? - South Africa

Most employers' human resources policies make provision for employees to produce medical certificates when they have been absent from work due to ill health.

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Sex Workers Should Be Treated with Dignity - South Africa

Sex workers occupy a precarious position in South African society regarding their legal rights. The Sexual Offenses Act 23 of 1957 criminalizes brothel keeping and carnal (sexual) intercourse for reward.

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African Soil: Indian Footprints - A Review of Indian Programs, Projects and Partnerships across Africa

The perception of doing business in Africa as “risky business” is fast diminishing as India looks to Africa as a favorable destination for trade. The link between South Africa and India can be traced back to the days of Mahatma Gandhi who had his roots both in India and in South Africa.

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When Is It Just and Equitable to Wind-up Companies? - South Africa

Section 344(h) of the Companies Act 61 of 1973 provides that a company may be wound up by the court if it appears to the court that it is just and equitable to do so. The word "may be wound up" grants to the court discretionary powers to decide whether to wind up irrespective of the grounds for winding up.

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Warning! Transaction Authority Affected by New Companies Act - South Africa

The Companies Act, 2008, (the New Act) will change the way in which the internal procedures of South African companies are regulated, through the introduction of the Memorandum of Incorporation (MOI), which document will replace the Memorandum and Articles of Association (Memorandum and Articles) under the Companies Act, 1973 (the Old Act).

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Earning Capacity Versus Actual Loss - South Africa

Loss of earning capacity is a person’s loss of the ability to earn income. However, does such loss translate to an actual loss of earnings?

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Accident Support Crumbles

The Road Accident Fund Amendment Act 19 of 2005 (the Amendment Act) has been a highly debated topic across South Africa since it came into effect on 1 August 2008. Of particular interest are the amendments that will preclude high income earners and their financial dependants from claiming their full loss of income or loss of support from the Road Accident Fund (RAF).

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Suspicion of Child Abuse by a Parent or Family Member - South Africa

What is child abuse? According to the Children's Act 38 of 2005 "abuse" means any form of harm or ill-treatment deliberately inflicted on a child. Child abuse occurs in all types of families, rich and poor. The abuser can be anyone and is not limited to the mother, father, sibling or family member of the child. A person who allows abuse to occur without reporting it within a reasonable time is also guilty of child abuse.

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Contact With and Care of Children

What is "contact"? Contact (previously known as "access") is what is awarded to the parent with whom the child is not residing ("the non-resident parent") and entitles that parent to visit, speak or write to the child. Theoretically this is the right of the child; however, non-resident parents cannot be forced to have contact with their child.

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Section 129 “to Give or to Receive” - South Africa

The recent judgment by the North Gauteng High Court in the case of First Rand Bank Limited vs. Msawenkosi Arthur Dhlamini (GNP) (unreported case no 50146/09, 17-3-2010) (Murphy J) is a passed judgment on the controversial topic of “delivery” of a s129 letter of demand.

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When Harassed by a Non-employee - South Africa

There’s a way to deal with harassment by a non-employee. Section 3 of the Code of Good Practice on the Handling of Sexual Harassment Cases defines sexual harassment as the “unwanted conduct of a sexual nature”.

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A Consumer’s Constitution - South Africa

The Consumer Protection Act (No 68 of 2008) was promulgated on 24 April 2009. The act lays the foundation for introducing a single comprehensive legal framework for protecting consumer rights in South Africa. It sets out the entitlement of consumers and responsibility of suppliers of goods and services.

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Labor Brokers – Real Remedies? - South Africa

The debate regarding the existence of labor brokers in the South African economy was, prior to the 2009 general election (and possibly still continues to be), a political hot-potato. Amendments to the legislation dealing with labor brokers should have been promulgated in early 2010 but the discussions around the issue continue. Amendments to legislation are anticipated in the latter part of 2010.

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Car Accident Claims in Limbo - South Africa

The Road Accident Fund Amendment Act of 2005 (the Amendment Act) has been highly debated in SA since it came into effect on 1 August 2008. Of particular interest are the amendments that will preclude high-income earners and their financial dependants from claiming their full loss of income or loss of support from the Road Accident Fund (the RAF).

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What is Maintenance? - South Africa

Maintenance is a periodic payment made to the caregiver of a child under the age of 18 years for basic amenities such as food, shelter, clothing, education and medical care. According to S15 of the Children's Act 38 of 2005, a maintenance order is directed at a child's parents in order to enforce the duty of parents to support their child.

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In search of Certainty - South Africa

Where an applicant has initiated application proceedings in the Labor Court but, after the respondent has entered a notice of intention to oppose as well as an answering affidavit to the founding affidavit, does not file a replying affidavit or have the matter set down for hearing, can the respondent apply to have the matter dismissed?

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South Africa Budget 2010/2011 – Amnesty Announced

As part of the tax proposals for the 2010/2011 fiscal year that are introduced by the Minister of Finance's in his Budget Speech, a “voluntary disclosure program” was announced, which will operate from 1 November 2010 to 31 October 2011.

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The Sick Note

Most employers' human resources policies make provision for employees to produce medical certificates when they have been absent from work due to ill health. The reason for doing so is to avoid the abuse of sick leave by employees who are not genuinely sick when they absent themselves from work.

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Brazil 2014 – Are you ready?

As construction for the 2010 Soccer World Cup in South Africa draws to a close, all eyes in the construction industry move to Brazil.

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Resolving Residency Implications in South Africa

An individual is considered to be a tax resident in South Africa either if he is “ordinarily resident” in South Africa or if he passes the physical presence test.

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When a Fixed-term Contract Is Stopped

In terms of section 29(1)(m) of the Basic Conditions of Employment Act 75 of 1997, when an employee commences employment, an employer must supply the employee with written particulars of his employment.

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All Eyes on Brazil 2014

As construction for the 2010 Soccer World Cup in South Africa draws to a close, all eyes in the construction industry move to Brazil. In this article, we briefly consider the advantages of using either the Féderation Internationale des Ingéneurs-Conseils (FIDIC) Red Book, and the New Engineering Contract (NEC3) Engineering and Construction Contract.

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Divorce and Children - South Africa

It’s tough when a couple decides to split up, specifically if there are minor children involved. Questions need to be asked about who gets to live with whom – and the children’s opinions should also be taken into consideration. Luckily South African law provides some guidance.

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Every Employee is Entitled to Annual Leave - South Africa

The primary objective of the Basic Conditions of Employment Act 75 of 1997 (BCEA) is to set out and enforce minimum conditions of employment so as to protect workers from exploitation.

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Validity of Medical Notes - South Africa

Most employers' human resources policies make provision for employees to produce medical certificates when they have been absent from work due to ill health. The reason for doing so is to avoid the abuse of sick leave by employees who are not genuinely sick when they are absent from work.

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Firms Face Defamation Danger in South Africa

Employees have a right to a hearing before any disciplinary sanction is imposed upon them, but there is uncertainty whether an employer can be sued for defamation by an employee for comments made during an investigation conducted before an internal disciplinary enquiry.

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Disclosure Remains Protected - South Africa

For the first time the Supreme Court of Appeal has been called upon to adjudicate a protected disclosures dispute. The broader effect of the case, City of Tshwane Metropolitan Municipality v Engineering Council of South Africa and another, is to develop further South Africa’s jurisprudence on whistleblower protection.

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Medical Certificates Are to Prevent Abuse of Sick Leave - South Africa

Most employers' human resources policies make provision for employees to produce medical certificates when they have been absent from work due to ill health. The reason for doing so is to avoid the abuse of sick leave by employees who are not genuinely sick when they absent themselves from work.

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Of Wills and Loved Ones - South Africa

One should not underestimate the value of composing a last will and testament in order to provide for one’s loved ones when you die. You don’t want them, in their time of sorrow, to deal with the troubles attached to a beloved’s passing “intestate”, that is, without a valid will.

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The Right to Privacy - South Africa

Direct marketing can be described as a multi-faceted set of business practices designed to promote and present an organization's products or services in ways that build effective customer relationships. Database usage is intrinsic to the ability and success of a direct marketer and its initiatives (utilizes personal information of and involves personal contact with the consumer).

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New Smoking Legislation - South Africa

The Tobacco Products Control Amendment Act 23 of 2007 and the Tobacco Products Control Amendment Act No of 2008 came into operation on 21 August 2009. The intention of the original act (Tobacco Products Control Act 83 of 1993) was to limit the amount of smoking in public places. The amendment acts have not deviated from this intention and have, in fact, strengthened the government's position against smoking in public.

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Dos and Don’ts of World Cup Branding - South Africa

The 2010 World Cup is widely seen as an unparalleled marketing opportunity for South Africa and its business community, and it is only natural for South African businesses to attempt to exploit this opportunity to its utmost, by using the event to promote their products and services.

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Blowing the Whistle - South Africa

For the first time the Supreme Court of Appeal has been called upon to adjudicate a protected disclosures dispute. The broader effect of the case - City of Tshwane Metropolitan Municipality v Engineering Council of South Africa and another - is to develop further South Africa’s jurisprudence on “whistleblower” protection.

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Mechanisms for Late Referral of Disputes - South Africa

Most working people are aware that in the event of an employment related dispute various forums such as the Commission for Conciliation, Medication and Arbitration (CCMA), bargaining councils and the Labor Court can be approached for assistance, including relief.

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Promotion Is the Boss’s Call - South Africa

The issue regarding the promotion of an employee often arises in the workplace, but there is not much understanding of the legal implications surrounding an employer's decision to promote or not to promote an employee.

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Employees Have a Right to Fair Labor Practices - South Africa

An employment relationship entails two distinct primary obligations for parties involved. The employee’s primary obligation is to place services at the employer’s disposal, while the employer’s obligation is to remunerate the employee for services rendered. However, it cannot be denied that the bargaining power between an employer and an employee is by its nature unequal.

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Condonation may Restore CCMA Case - South Africa

Most working people are aware that in the event of an employment-related dispute, various forums such as the CCMA, bargaining councils and the Labor Court can be approached for assistance.

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Domestic Violence - South Africa

All too often, individuals co-habiting in domestic relationships endure every day with ongoing abuse on some or other level. In 1998, South African (SA) legislature sought to eradicate the occurrence of domestic abuse with the promulgation of the Domestic Violence Act, 116 of 1998 (the Act).

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Should Child Support Grants Be Deducted from a Claim for Loss of Support?

The law and procedure governing child support grants is set out in Social Assistance Act 13 of 2004 (the Act).

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Dispute Resolution - South Africa

Construction dispute resolution techniques are no longer confined to grim court or arbitration battles. Far more appropriate techniques have emerged; techniques which seek to preserve commercial relationships and minimize disruption to the progress of the works.

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Is Promotion at Work a Right? - South Africa

Does an employee have a legitimate expectation to a promotion?

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Claiming for Staff Injury or Death - South Africa

Court ruling answers a critical questions relating to employees of labor brokers.

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The Constitutional Fate of ICASA in a Converged Sector

The Constitution specifically requires the independent regulation of broadcasting. Section 192 provides: National legislation must establish an independent authority to regulate broadcasting in the public interest, and to ensure fairness and a diversity of views broadly representing South African society.

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Adoption Law in South Africa

Infertility is on the increase. The inability of potential parents to conceive a child of their own often leaves couples disheartened and discouraged, especially when artificial fertilization is not a viable option for them. As in last issue's segment, we explore another option available to prospective parents who are not able to conceive or choose not to, and that is adoption.

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Know your Rights at Work - South Africa

Section 23 of our Constitution provides that everyone has the right to fair labour practices. In order to give effect to this right in the employment law context, the Basic Conditions of Employment Act 75 of 1997 (the BCEA) was passed to regulate the basic conditions of employment.

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Incapacity! Dealing with Ill Health or Injury - South Africa

Incapacity is the failure or inability of an employee to work according to the required standard of the job; it encompasses poor work performance. Incapacity due to ill health or injury differs from poor work performance, because no fault can be attributed to the employee for the incapacity or the poor performance.

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Secret Profits

The question which arises with the introduction of the new Companies Act 71 of 2008, is having regard to the provisions of section 75 of the new Act, what is happening to the rule on corporate opportunities as has developed in the common law?

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Amendments to South Africa’s CFC Legislation and the Foreign Business Establishment Exemption

This article sets out the amendments to the "foreign business establishment" exemption contained in South Africa's "controlled foreign company" (CFC) legislation, as introduced in the Taxation Laws Amendment Act of 2009.

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Going Green Pays Off

SA has recognised the risk of climate change in its "National Climate Change Response Policy" that was launched at the National Climate Change Summit in March

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Take a Break – You’ve Earned it - South Africa

The purpose of the Basic Conditions of Employment Act 75 of 1997 is to establish minimum terms and conditions of employment for employees. Among the important provisions of the act is the granting of annual leave on full remuneration.

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Artificial Fertilisation & the Incidence of Multiple Births

According to the latest South African census, conducted in 2001, fertility in South Africa has been decreasing for almost four decades. The national level of fertility has been estimated at below three children per female in the country.

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Children with Disabilities and the Law

Clause 11 of the Children's Act 38 of 2005 defines the state's obligations to ensure the care, development and protection of children living with a disability or chronic illness.

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Workers or Their Dependants May Claim for Accidents or Death - South Africa

When an employee is injured or killed during the course of their employment, they or their dependants may claim compensation within 12 months of the accident or date of death from the workmen's compensation commissioner. They can claim from the Workmen’s Compensation commissioner.

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How Law Protects Leave Pay - South Africa

The Basic Conditions of Employment Act 75 of 1997 is designed to establish minimum terms and conditions of employment for employees. Among the important provisions of the act is the granting of annual leave on full remuneration.

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Retrenchment – The Duty to Consult

The current economic climate has resulted in many retrenchments worldwide and South African employers are now asking questions about their obligations to employees in a retrenchment process.

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Constructive Dismissal

It is generally accepted that when an employee submits a letter of resignation, that letter brings the employment relationship to an end and the employee has no further claim against the employer.

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What is a Strike?

In the recent Supreme Court of Appeal (SCA) judgment of Sasria Limited v Slabbert Burger Transport (Pty) Ltd, 2008 (5) SA 270 (SCA), the SCA had to interpret the word "strike" in a so-called coupon policy issued by Sasria to the respondent.

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Transport and the Environment in South Africa

Transport operations and their associated infrastructure give rise to large environmental impacts. New projects mostly require environmental authorisation and developers must therefore walk the gangplank of the environmental impact assessment (EIA) process.

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Is it a Tenant’s Market or a Landlord’s? (South Africa)

Like many other sectors, the market for rented retail property has not escaped the fall-out from the worldwide economic slowdown. Just how big the impact has been and how it has affected the process of negotiating a retail lease is worth considering.

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When Resignation Becomes Dismissal

It is generally accepted that when an employee hands in a letter of resignation, that letter brings the employment relationship to an end and the employee has no further claim against the employer.

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You Have a Right to Fair Labor Practices - South Africa

Section 186(2) of the Labor Relations Act defines an unfair labor practice as an unfair act or omission that arises between an employer and an employee

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Intoxication as a Multiple Defence in South African Criminal Law

Crime statistics show that alcohol and drug consumption has in many cases a direct and substantial influence on criminal conduct. It is, therefore, alarming that people who become voluntarily drunk stand a good chance of being acquitted in the South African courts if the evidence reveals that, at the time of the act, the accused happened to fall in the grey area between ‘slightly drunk’ and ‘very drunk’.

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CCMA Conciliations

When an employee refers an unfair dismissal or unfair labour practice dispute to the CCMA, the CCMA is required to appoint a commissioner to firstly attempt to resolve the dispute through conciliation.

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South Africa Repossession of Goods in the Context of the National Credit Act

The current economic climate has resulted in a proliferation of "cash strapped" consumers. Accordingly the purchase of a vehicle is very rarely a cash transaction. The obvious alternative is an installment sale agreement, whereby the vehicle is paid off over a period of time.

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Keeping Control of Exchanges - China

Those who bend the rules stand accused of money laundering and may face action

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Key Role of the Disciplinary Chair - South Africa

Labour court rules on whether an employer can overturn the sanction imposed by a disciplinary inquiry

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Probation Must Be Done Reasonably - South Africa

Very often people are employed on probation for an agreed period of time subject to their employment being confirmed or discontinued due to unsatisfactory performance. This is regulated by item 8 of schedule 8 of the Labor Relations Act 66 of 1995.

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All in Favour of Striking a Balance - South Africa

The National Credit Act is a piece of legislation heavily geared towards consumer protection. The restrictions and limitations it imposes on credit providers in the name of consumer protection are numerous and since its implementation have definitely impacted on the conduct and profitability of the businesses of credit providers across the board.

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The Greening of Construction - South Africa

South Africa has recognised the risk of climate change in its "National Climate Change Response Policy" launched at the National Climate Change Summit in March 2009. It has been estimated that commercial buildings account for approximately 20% of greenhouse gas emissions, both during the construction phase and the ultimate use of the building.

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Act Swiftly on Office Impropriety Issues

Sexual harassment is defined as unwanted conduct of a sexual nature. SA’s labour law places a duty on employers to ensure that complaints of sexual harassment are properly dealt with. Failure to do so may lead to the employer being held vicariously liable for the acts of sexual harassment committed towards its employees.

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Be Careful What Powers You Accord a Disciplinary Hearing - South Africa

An employee pleads guilty to committing fraud amounting to hundreds of thousands of rands. The chairperson of the disciplinary inquiry decides to impose a sanction of a final written warning. The employer is not happy with the sanction, believing that it cannot trust the employee anymore and that by retaining the employee, it might create a precedent among employees - that if they committed fraud, they would get away with a final written warning.

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To Join or not to Join?

The Supreme Court of Appeal recently, in the unreported judgment of Gordon v Department of Health (unreported case no 2007/337, 17-9-2008) had opportunity to again deal with the principles relating to joinder.

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Bosses cannot Discriminate against Workers in South Africa

The Constitution of the Republic of South Africa guarantees the right of an employee not to be subjected to unfair discrimination.

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Act Aims to Take Consumer Protection to the Next Level - South Africa

It is important that all players are aware of whether they are bound by the new law. The Consumer Protection Act is a piece of legislation to create and promote an economic environment that supports and strengthens the culture of consumer rights and responsibilities.

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Credit Provider Firmly in the Driving Seat - South Africa

The current economic climate has resulted in a proliferation of "cash strapped" consumers. Therefore, the purchase of a vehicle is very rarely a cash transaction. The obvious alternative is an instalment sale agreement, whereby the vehicle is paid off over a period of time.

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Mind if I Bring in My Lawyer? - South Africa

In labor law legal representation is not permitted in arbitration proceedings where a party is dismissed for misconduct and incapacity. However, legal representation can be permitted during arbitration with the consent of the parties and the arbitrator. The reasoning for not affording parties the right to legal representation in arbitration proceedings is meant to facilitate an effective process which should expedite the finalization of an arbitration.

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Capacity Requirements Need a Comprehensive Planning Regime

It is just over one year ago that South Africa experienced severe electricity shortages. Energy planning is therefore something which is or ought to be dear to all South Africans. It also has significant environmental impacts – especially with respect to the energy diversification or mix of energy sources that are pursued.

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Employer Has Duty to Act Against Sexual Harassment

Sexual harassment is defined as unwanted conduct of a sexual nature. Our labour legislation places a duty on employers to ensure that complaints of sexual harassment are properly dealt with. Failure to do so may lead to the employer being held vicariously liable for the acts of sexual harassment committed towards its employee/s.

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Steps to Take When You Are Suspended from Work - South Africa

An employee may be suspended from his work pending a disciplinary hearing or as a form of sanction. Where an employee is suspended pending a disciplinary enquiry, the employer is in most cases obliged to continue to pay the employee's salary.

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Future Foundations - South Africa

It is just over a year since South Africa experienced severe electricity shortages. Energy planning should, therefore, be clear to all South Africans. It also has significant environmental impacts, especially with respect to the energy "diversification" or the "mix" of energy sources pursued.

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Is this What the Legislature Intended? - South Africa

The current economic climate has resulted in a proliferation of "cash strapped" consumers. The purchase of a vehicle has indeed rarely been a cash transaction. The obvious alternative is an instalment sale agreement, whereby the vehicle is paid off over a period of time.

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Emails: How Private is Private? - South Africa

Many employers today would for various reasons like to monitor their employees’ emails and Internet use. Such monitoring must be handled carefully in order to ensure that employers do not violate their employees’ constitutionally protected right to privacy.

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Legal Right to Pregnancy - South Africa

Section 26 of the Basic Conditions of Employment Act 75 of 1997 sets basic standards for the safety and health of pregnant employees. In terms of section 87(1)(b) of the Act, the Minister of Labour has issued a Code of Good Practice on the Protection of Employees during pregnancy and after childbirth.

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Employers must Guard against Constructive Dismissal Claims

It is generally accepted that, when an employee submits a letter of resignation, the letter brings the employment relationship to an end and the employee has no further claim against the employer.

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Employee must Disclose Past Misconduct - South Africa

Is there a duty on a prospective employee to disclose misconduct which he or she has committed or is suspected of having committed, if not specifically asked during an interview for employment?

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Working with Crisis

There is no shortage of infrastructure projects on the African continent but the landscape changed dramatically in 2009. The turmoil in global commodity and financial markets over recent months has probably changed banking forever.

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Employers Must Discuss Retrenchments with Workers - South Africa

The current economic climate has resulted in many retrenchments worldwide and employees are now asking questions about employers’ obligations to employees in a retrenchment process.

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Retrenchments are a Process, not a Decision - South Africa

The present economic climate has resulted in many retrenchments worldwide and South African employers are now questioning their obligations to employees in a retrenchment process.

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Venture Capital Company Regime - South Africa

About two years ago there was a lot of media coverage about South Africa adopting something similar to what the Canadian tax regime has namely, a form of flow-through company. The idea behind this company was to assist the development of junior mining companies, by passing the tax breaks which a mining company is eligible for to its shareholders in the period before the mining company generates sufficient taxable income from production to utilise the costs generated by its mining activities.

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Breach of Notice Period – Employers Hit Back

There are various reasons why employees fail to give notice to employers on termination. Whatever the reasons, this phenomenon is not only common but also appears to be on the increase in the South African workplace. The good news for employers is that there are legal remedies.

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Pitfalls in Dismissal Procedure - South Africa

The credit crisis has forced a number of South African employers to reorganise their businesses and this will no doubt continue next year. This article briefly explores our law relating to reorganising a business as it applies to employees and employers.

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Coastal Conservation Boosted in South Africa

In South Africa, the sea and the sea-shore were previously regulated by the Sea-Shore Act. In order to align the regulation of this sensitive environmental zone in line with the Constitution and environmental-specific legislation such as the National Environmental Management Act 107 of 1998 (NEMA), a new Act has been enacted.

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Coastal Zone to Get Better Protection in South Africa

In SA the sea and the seashore were previously regulated by the Sea-Shore Act of 1935. In order to align the regulation of this sensitive environmental zone in line with the constitution and environmental specific legislation such as the National Environmental Management Act of 1998, the National Environmental Management Integrated Coastal Management Bill (“the Coastal Management Act”) has been enacted.

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Landowner, Rights Holder in Gems Battle - Mining in South Africa

Few activities are more environmentally destructive than mining. But SA’s economy was built on mining. We also have an environmental right in our constitution that has been described by our courts as “majestic” as it offers unlimited protection for the environment.

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To Dig or not to Dig – Surface Owners’ Rights Versus the Right to Mine - South Africa

Few activities are more environmentally destructive than mining. South Africa's economy, however, was built on mining. We also have an environmental right in our Constitution that has been described by our courts as "majestic" as it offers unlimited protection for the environment.

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The Demotion of Workers must be Procedural - South Africa

The Labour Relations Act makes provision for the demotion of an employee in the right circumstances. Demotion is defined as a reduction of dignity, importance, responsibility, power or status of an employee even if his or her salary and attendant benefits and rank are retained.

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Sponsors Brace for a Bumpy Ride - South Africa

In the last three to five years, Africa has seen the increasing use of public private partnerships for infrastructure development. This private sector involvement has been dependent on the commercial viability of projects with revenue streams covering more than the capital and running costs involved, ensuring an appropriate return.

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Stronger Sanctions for Road Users in South Africa

The Administrative Adjudication of Road Traffic Offenses Act of 1996 provides for a new road traffic offenses system to be implemented in South Africa. The act is expected to come into operation throughout South Africa during the course of this year.

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Lifting the Ownership Veil - South Africa

For decades South Africans have utilised nominee shareholders to hold their shares in companies in order to ensure that their shareholdings remain ”off the radar”. At common law it is quite permissible for the registered holder of a share(s) to do so as an agent (or nominee) for the owner or beneficial shareholder of those shares.

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CCMA is There to Resolve Conflicts in the Workplace - South Africa

Only certain unfair acts or omissions on the part of an employer constitute an "unfair labor practice”.

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The Application of Section 6quat of the Income Tax Act - South Africa

Double tax relief is a term associated with cross border transactions and refers interchangeably to any of the relief methods which may exist in domestic tax law or treaty law.

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Executive Suspensions - What are the Rules?

A company may be faced with a situation where it has to suspend a member of its executive management pending an investigation into allegations of serious misconduct or the holding of a disciplinary enquiry. Does a different set of rules apply for suspensions of a member of executive management than to junior employees?

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Penalty Clauses – Don’t be too Harsh! - South Africa

Penalty clauses are a common and often essential provision in commercial contracts. The enforceability of these clauses is, however, not always straight forward and the prudent businessman is well advised to acquaint himself with the general legal principles around them.

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Does Double Jeopardy Apply to Labor Cases in South Africa?

It is the prerogative of an employer to discipline its employees. An employee who has been charged with misconduct or poor performance is entitled to be given the opportunity to be heard before he can be sanctioned. Arising from the convening of a disciplinary enquiry, the employer may impose a sanction it considers appropriate, provided the sanction is fair.

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Previous Misconduct is a Fireable Offense in South Africa

Is there a duty on a prospective employee to disclose misconduct which he or she has committed or is suspected of having committed, if not specifically asked during an interview for employment?

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Executive Suspensions - South African Labor Law

A company may be faced with a situation where it has to suspend a member of its executive management pending an investigation into allegations of serious misconduct or the holding of a disciplinary enquiry. Does a different set of rules apply for suspensions of a member of executive management than to junior employees?

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Protecting Consumers in South Africa

When the Consumer Protection Bill comes into effect next year, small business owners will need to be aware of all the implications.

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Are South Africa's Environmental Policies and Laws on the Right Track?

This is a question which I found myself asking after reading the July issue of Newsweek. The publication is largely dedicated to environmental issues and contains a summary of a recent environmental performance study conducted by Yale and Columbia Universities.

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Environmental Expenditure – not a Debate any Longer - South Africa

The need to protect and preserve the environment is no longer a debate. Governments around the world, including South Africa, have recognised the need to put certain legislative measures in place to ensure that the environment is, to some extent, preserved at the expense of business.

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What You Need to Know about Fixed-term Franchise Agreements

Fixed-term franchise agreements run for a specific time period at the end of which they terminate automatically if not renewed or extended. The agreements can be terminated by either the franchisor or franchisee.

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Venture Capital Company Regime

About two years ago there was a lot of media coverage about South Africa adopting something similar to what the Canadian tax regime has namely, a form of flow-through company. The idea behind this company was to assist the development of junior mining companies, by passing the tax breaks which a mining company is eligible for to its shareholders in the period before the mining company generates sufficient taxable income from production to utilise the costs generated by its mining activities.

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Full and Final Settlement for Municipal Accounts in South Africa

You pay your municipal account every month in full according to the invoices submitted to you. What happens when, as a result of the municipalities' ineptitude, you receive an account for an amount over and above what you have already paid? Their argument is that they undercharged you for the last three years. Can you place this amount in dispute and offer an amount in full and final settlement?

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Big Brother is Governed by Strict Rules in the Workplace

In the technology-driven age we live in, employers may often find themselves in a situation where the monitoring of their employees' email and internet use becomes necessary, either to investigate suspected wrongdoing or to prevent the abuse of company resources by employees for personal reasons.

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National Credit Act: One Year Down the Line – South Africa

What effect has the National Credit Act, which replaced the Usury Act and the Credit Agreements Act, had on consumers, credit providers and the credit market as a whole, one year after its implementation?

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Will Ill Health Affect your Employment? - South Africa

Incapacity is the failure or inability of an employee to work according to the required standard of the job. It encompasses poor work performance. Incapacity due to ill health or injury differs from poor work performance, because no fault can be attributed to the employee for the incapacity or the poor performance.

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Tax Breaks for Venture Capitalists - South Africa

About two years ago there was media coverage about SA adopting something similar to what the Canadian tax regime has, namely, a form of flow-through company. The idea behind this company was to assist the development of junior mining companies by passing the tax breaks which a mining company is eligible for to its shareholders in the period before the mining company generates sufficient taxable income from production to utilize the costs generated by its mining activities.

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Clients to Blame for Lawyer’s Undoing? - South Africa

The Labor Relations Act 66 of 1995, has provided for the establishment of dispute resolution agencies such as the Commission of Conciliation, Mediation and Arbitration (CCMA), Bargaining Councils and the Labor Court.

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How Trade Unions Earn Recognition by Employers - South Africa

The recent strike by Woolworths employees related to the recognition of the trade union, Saccawu, raised many questions about the rights of trade unions.

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On the right track? – South Africa

South Africa scores poorly on an international environmental performance index. Does this mean our country’s environmental policies and laws are on the wrong track?

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Protecting Consumers

When the Consumer Protection Bill comes into effect next year, small business owners will need to be aware of all the implications…

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False Accusations of Racism Are Punishable – South Africa

The Labor Appeal Court and the Labor Courts have come out strongly against racism in the workplace. The reason for such approach is obvious – the constitution and other pieces of legislation, including labor legislation, outlaw historically institutionalized racism in SA.

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Discipline: Treating Like Cases Alike - South Africa

An employer must apply the penalty of dismissal consistently with the way in which it has been applied to the same and other employees in the past and consistently as between two or more employees who participate in the misconduct under consideration.

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Counting the Points - South Africa

The Administrative Adjudication of Road Traffic Offences Act (46 of 1996) (AARTO Act) provides for a new road traffic offences system to be implemented in South Africa, which is presently being piloted in Tshwane and will be piloted in Johannesburg around November 2008. The Act is expected to come into full operation throughout South Africa during the course of 2009.

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It's Time to Enhance the Power of the SRP

The recent decision of the Securities Regulation Panel (SRP) in the matter of Tsogo Sun Holdings Limited (Tsogo) and Gold Reef Resorts Limited (Gold Reef) brought to the fore the crucial role played by the SRP in potential takeovers, including the extent of its powers under the Companies Act to enforce the securities regulation panel code.

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Decision Document Maps Radio Allocations – South Africa

Under the Electronic Communications Act, 2005, a radio frequency spectrum license is required for the purposes of utilizing the radio frequency spectrum. Radio frequency spectrum means the portion of the electromagnetic spectrum used as a transmission medium for electronic communications.

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EIAs – Is the Public Able to Participate?

Environmental Impact Assessments (EIAs) have been part of South African environmental law since the enactment of the EIA Regulations under the Environmental Conservation Act in 1998. These have been amended and streamlined since the new EIA Regulations were introduced in 2006 under the National Environmental Management Act and are currently undergoing further amendments.

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