Restrictions on cancellation penalties
With each new year, resolutions are made to become fitter and healthier, resulting in a large percentage of gym contracts being entered into across South Africa. However, resolutions are often short-lived and the business owner may receive requests for cancellation before the initial contract term has even expired. Informed members often invoking Section 14 of the Consumer Protection Act (CPA) when submitting such a request for cancellation. Gyms that have entered into fixed terms contracts...
PROBATION PERIOD, A FUTILE OR EFFECTIVE CONTRACTUAL CLAUSE
A Probation period is a controversial topic that requires an open mind to comprehend fully. South Africa has a very competitive and desperate labour market. The unemployment rate in South Africa rose to 27.6% in the first quarter of 2019 from 27.1% in the previous period. It is the highest jobless rate since quarter 3 2017, as the number of unemployed went up by 62 000 to 6.20 million and employment fell by 237 000 to 16.29 million. Despite this, there still exists a demand for employment in...
UNDERSTANDING TRUSTS IN TERMS OF THE B-BBEE ACT
Trusts have become a popular tool to facilitate Ownership for purposes of compliance with the requirements of the B-BBBE (Broad-Based Black Economic Empowerment) Act. It is however important that Companies take note of the requirements for recognition of such a Trust in an Ownership transaction. It is important to understand that a trust is seen as a Broad Base Ownership Scheme and as such to ensure that black people effectively own and control the ownership rights held through a Trust, The...
The expectation of renewal and dishonesty: Why it’s crucial to come clean
The Labour Court of South Africa, Johannesburg, was recently faced with the task of taking a closer look at the reasonableness of an employee’s expectation of the renewal of his or her fixed term contract of employment. In the recent case of Njikelana v Kruger N.O and Others, an application was made to review an award made by the commissioner under the auspices of The Commission for Conciliation, Mediation and Arbitration (CCMA) in order to determine whether, in casu, the employee did have a...
Essential factors to consider before referring a case of constructive dismissal
Often times, employees not happy or aggrieved with the working environment or condition(s) find themselves having to tender their resignation and referring a dispute of constructive dismissal with either The Commission for Conciliation, Mediation and Arbitration (CCMA) or relevant bargaining council without obtaining proper legal advice. In cases of constructive dismissal, it is imperative to first get the understanding of what the term really entails before taking a decision of terminating...
POPI Compliance Certification
With the introduction of the Protection of Personal Information Act 4 of 2013 (referred to as “POPIA” or “the POPI Act”) and the publication of the final Regulations in the Government Gazette no 42110 on the 14th of December 2018, numerous businesses asks the same question: “How do I become POPIA Certified or obtain a POPIA compliance certification?”. Besides the requirements and objectives to achieve in accordance with the POPI Act, the Information Regulator has not yet set up a system...
Strikes and picketing now regulated to avoid disruption and chaos
The previous era of strikes and picketing was earmarked by serious disruption of businesses and chaos as a result of unregulated picketing by striking employees due to a lack of regulation. Government has now amended the Labour Relations Act (LRA), issued a new Code of Good Practice on collective bargaining, industrial action and picketing and regulations, which will hopefully regulate these issues more effectively in order to limit the severe disruption and chaos which ensued during strikes...
Die Groot Vraag in BSEB
Elke besigheid wat deelneem aan die Breëbasis Swart Ekonomiese Bemagtiging (BSEB) het al meer as een keer die groot vraag gevra: “Hoekom moet ek deelneem aan die BSEB proses?” Is die uitgawes, tyd en administrasie wat gepaard gaan met die deelname aan die BSEB proses wel die moeite werd? Om ‘n besigheidseienaar te wees in Suid-Afrika vandag is opsigself ‘n groot uitdaging wanneer jy kyk na al die wetgewing waaraan besighede moet voldoen. ‘n Persoon het eenkeer gesê dat daar so baie...
The Big Question in B-BBEE
Each entity participating in the Broad-Based Black Economic Empowerment (B-BBEE) process have asked the big question more than once: “Why must I participate in B-BBEE?” Business owners may find themselves questioning whether all the expenses, time and admin that accompanies the ongoing process of participating in B-BBEE are worth the effort? Owning a business in South Africa is very challenging, if we look at all the legislation that entities have to comply with and implement...
Kan ‘n mediese praktisyn ‘n kansellasiefooi hef?
Die Wet op Verbruikersbeskerming (VBW) hanteer kansellasies en gee spesifiek aan 'n verbruiker die reg om 'n voorskot bespreking, ‘n bespreking of ‘n bestelling te kanselleer. Dit bied op sy beurt die reg aan 'n Verskaffer om 'n redelike kansellasiefooi te hef, in aggenome die volgende: 1. Die aard van die goedere of dienste wat gereserveer of bespreek is. 2. Die tydperk van die kennisgewing van kansellasie wat deur die verbruiker verskaf is. 3. Die redelike potensiaal vir die diensverskaffer...