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Constructive dismissal

Is there such a thing as constructive dismissal? The answer is absolutely, but tread cautiously … such a dismissal is unfortunately very hard to proof. To make matters worse, the burden of proof is reversed. We see it every day that there is a misplaced perception in the workplace that employees believe that constructive dismissal […]

Disciplinary hearing procedure

PRE-DISCIPLINARY INVESTIGATIONS IN THE WORKPLACE It is quite scary to notice that some Employers do not investigate grievances or incidents, that could possibly lead to disciplinary steps to be taken. Is it a case of an Employer who makes up his mind beforehand or can the Employer just not be bothered to go through an […]

Documents required for the registration of a company

WHAT DOCUMENTS ARE REQUIRED FOR THE INCORPORATION OF A COMPANY: The following list describes the different documents that will have to be prepared and filed with the Commission to incorporate a new company: It is important to note that the Commission issues notices, and practice notes periodically, which must be complied with. A form CoR […]

PRE-DISCIPLINARY INVESTIGATIONS IN THE WORKPLACE

It is quite scary to notice that some Employers do not investigate grievances or incidents, that could possibly lead to disciplinary steps to be taken. Is it a case of an Employer who makes up his mind beforehand or can the Employer just not be bothered to go through an investigation before instituting disciplinary steps? […]

SOLVENCY AND LIQUIDITY TEST

For any purpose of the Companies Act, a Company satisfies the solvency and liquidity test at a particular time if, considering all reasonably foreseeable financial circumstances of the company at that time: (1) the assets of the company, as fairly valued, equal or exceed the liabilities of the company, as fairly valued; and (2) it appears […]

CAN EMPLOYEES BE BANNED FROM RECORDING COMMUNICATIONS IN THE WORKPLACE?

The courts have confirmed that employers do have the right to discipline employees for unlawfully recording workplace activities, where there is a business interest for doing so – it was on this basis that the employee’s dismissal was upheld in NUMSA and Another v Rafee N.O. and Others [2017] 2 BLLR 146 (LC). In the above […]

STANDARDS OF DIRECTORS CONDUCT

The answer is found in section 76 of the Companies Act.  It is thus save to conclude that directors’ duties are partially codified by law. It is indeed correct that in this section “director” includes an alternate director, and a prescribed officer; or a person who is a member of a committee of a board […]

CHECKLIST JOINT VENTURES GENERAL OUTLINE

PRELIMINARY MATTERS What is the station of deliberations between the parties to date? Is a confidentiality undertaking required from either, both or all the parties or their affiliates? Do the parties want to have a period of exclusive negotiation? PURPOSE OF THE JOINT VENTURE What activities will be carried on by the joint venture? Can […]

EFFECT OF BUSINESS RESCUE ON EMPLOYEES AND CONTRACTS

(Section 136 of the Companies Act, as amended) The main effect of this section is to regulate the position of employees and their contracts in the context of the business rescue proceeding, and to regulate the position of the company in respect of its obligations in terms of any existing contracts that may apply at […]

INCOME TAX: COMPANIES CLOSE CORPORATIONS TRUSTS & SOLE PROPRIETORSHIP

A company, Close Corporation or business trust is a separate tax entity for income tax purposes. Partnerships and Sole Proprietorships are not. Tax will be paid by the partners or sole proprietor. The latter has several implications, namely: For tax purposes close corporations are treated like companies. Companies pay tax at a flat rate of […]