A Million Rand Warning: Act When Employees Reach Retirement Age

A Million Rand Warning: Act When Employees Reach Retirement Age

Many employees reaching “retirement age” (often set at 60 or 65) are not ready to retire. Perhaps they need to carry on earning an income, often they are fit and healthy and want to remain engaged and productive. Increasingly, both factors are at play. Regardless, the concepts of an aging workforce and “65 is the new 50” are here to stay, and employers and employees alike need to tackle the changing realities that come with them. Agree a retirement date upfront! Firstly, do not as an employer make the mistake of not specifying an agreed retirement age in your contracts…
Read More
Don’t Risk Consequential “Loss of Profits” Damages: Check Your Contracts and Insurance!

Don’t Risk Consequential “Loss of Profits” Damages: Check Your Contracts and Insurance!

One of the risks you run in any business is being sued for losses you cause to someone else. Although normally your risk of legal liability is linked to the claimant proving some form of negligence on your part (i.e. the onus is on the claimant to prove your negligence), there are exceptions. To take one example (as seen in the case discussed below) a “carrier of goods for reward by land” has “absolute liability” to deliver goods undamaged; and thus the onus switches to the carrier to prove a lack of fault. No matter who has to prove what there could…
Read More
Employee Looting and Strike Violence: When Is Dismissal Fair?

Employee Looting and Strike Violence: When Is Dismissal Fair?

Employee looting and/or violence can take place during strike action or it can occur during non-workplace incidents such as the recent looting and public disorder sprees. In both cases employers need to take action, but with care. Addressing firstly the “strike” scenario, employees have strongly entrenched rights when it comes to taking industrial action. But strikers who indulge in, or associate themselves with, any form of violence or intimidation can expect little sympathy from our courts. Two Labour Appeal Court decisions illustrate – Dismissed for associating with a crowd assault “Within a labour law context the requisite intention exists where…
Read More
Violence and Looting – Can You Sue SAPS?

Violence and Looting – Can You Sue SAPS?

The recent widespread public unrest, destruction of property and looting caused massive loss and damage in two provinces, and our television sets and other news media carried images of rampaging crowds looting and burning – with, for the first few days at least, very little evidence of effective police reaction. Many of those who suffered losses (or their insurers) will no doubt be wondering if they might have a claim for damages from the police and other agencies tasked with protecting us from crime. We address the issue with reference to the case of a farm vandalised during a worker’s…
Read More
Noisy Neighbours – Your Rights, and Buyers Beware!

Noisy Neighbours – Your Rights, and Buyers Beware!

We’ve all had them – noisy neighbours whose dogs bark incessantly, whose late-night parties leave everyone sleep-deprived, whose businesses make working from home and relaxing in the garden an impossibility. We’ll have a look at two aspects of this problem, starting with the option of taking your neighbours to court if a friendly approach to them bears no fruit. What must you prove to get a court order? Two very different cases, one involving a suburban puppy daycare business and the other a city centre gym, illustrate. Secondly, we share some thoughts for property buyers on preventing problems upfront by…
Read More
Directors, Creditors – Do Personal Suretyships Survive Business Rescue?

Directors, Creditors – Do Personal Suretyships Survive Business Rescue?

In these hard times of pandemic and economically destructive unrest, an unfortunate number of businesses face collapse, and many will opt for the “first aid for companies” option of business rescue. Creditors coming out of that process with a shortfall (only the luckiest creditors are likely to emerge with full settlement) will naturally look to any personal suretyships they hold to cover that shortfall. A recent Supreme Court of Appeal (SCA) decision has brought welcome clarity to the question of whether – and in what circumstances – such personal suretyships will survive the business rescue process. Both directors and creditors…
Read More
Buying Property from a Company – Should You Buy the Shares or the House?

Buying Property from a Company – Should You Buy the Shares or the House?

You find the house of your dreams, agree on the price and get ready to put pen to paper. The house is in the name of a company, and you are offered a choice – either buy the house out of the company or take over the company (which owns the house and nothing else) by buying the shares and thus avoid the delay and cost of a normal property transfer and registration in the Deeds Office. What should you do? There are a host of both practical and legal factors to consider before deciding. Holding property in a company…
Read More
Spousal Maintenance After Divorce and the “Clean Break” Principle

Spousal Maintenance After Divorce and the “Clean Break” Principle

Our courts always prioritise the interests of children in any marital breakup, and child maintenance orders are accordingly tailored to ensure that both parents honour their obligations to support their children financially – to the extent that each spouse is able to do so, and for so long as is necessary. Spousal maintenance on the other hand requires a more delicate balancing act. In a nutshell, spouses have a “reciprocal duty” to support each other during the marriage, and although that duty ends when the marriage ends, courts still have a wide discretion to order either “permanent” or “rehabilitative” maintenance…
Read More
R4m Damages for a Workplace Sexual Assault

R4m Damages for a Workplace Sexual Assault

Employers who don’t adequately address the problem of sexual harassment in the workplace can expect to pay the price in court. As can the perpetrators themselves. We look at the case of a woman [PE v Dr Beyers Naude Local Municipality and Another (828/2011) [2021] ZAECGHC 35] whose decade long trek through the courts has finally resulted in a damages payout of just under R4m. The employer and the perpetrator are “jointly and severally” liable for both the damages and for a no-doubt substantial legal bill. Our discussion of the judgment leads us through the factors taken into account by the…
Read More
Bodies Corporate: Before You Sequestrate to Recover Arrears

Bodies Corporate: Before You Sequestrate to Recover Arrears

One of a Body Corporate’s fundamental duties is to collect monthly levies from the scheme’s members, and to take robust action to recover any arrears. As with any other creditor/debtor relationship however, trying to recover debt can be an exercise in frustration and delay, and the more recalcitrant the debtor, the greater the temptation to “go straight for the jugular” by applying to sequestrate the debtor’s estate. You will have to show that the sequestration is to the advantage of creditors as a whole – not just to you – but that isn’t the only consideration. You will be throwing…
Read More