Restraint of Trade: Fatal Vagueness Means no Father Christmas to the Rescue

Restraint of Trade: Fatal Vagueness Means no Father Christmas to the Rescue

“The legal principles, as I understand them, do not confer on me the powers of Father Christmas. I cannot rescue the un-rescuable.” (Quoted in the judgment below) We all want loyal, competent staff who remain motivated to stay with us in the long term, but the reality is that a degree of employee churn is always inevitable.  Imagine then this scenario – a key employee (someone senior, a specialist, or perhaps even a partner or director) is fired or leaves you. They take with them intimate knowledge of your business. They know all your trade secrets, your pricing processes, your…
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Fixed Term Contracts: A Guide for Employers and Employees

Fixed Term Contracts: A Guide for Employers and Employees

It’s vital for both employers and employees to understand the practical and legal differences between permanent and fixed term employment arrangements. What is a fixed term contract? A fixed term contract is a temporary employment arrangement with a specified start date and an agreed end date. This could be a fixed end date or a reference to a specified task or project reaching completion, or to a specified event. Importantly, you must be able to prove that your employee agreed to the end date. A standard contract of employment, by contrast, is for an unlimited period and ends only when…
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Employers and Employees Take Note: New Earnings Threshold from 1 April 2025

Employers and Employees Take Note: New Earnings Threshold from 1 April 2025

From 1 April 2025, the earnings threshold under the Basic Conditions of Employment Act (BCEA) will increase, impacting not only the BCEA but also employee protections under the Labour Relations Act (LRA) and Employment Equity Act (EEA).  Broadly speaking, employees earning less than the threshold amount are entitled to stronger labour protections. The new threshold  The threshold rises by only 2.9% this year, increasing from R254,371.67 per year (R21,197.64 per month) to R261,748.45 per year (R21,812.37 per month). What counts as “Earnings”? “Earnings” (for this purpose only) means “the regular annual remuneration before deductions, i.e. income tax, pension, medical and similar payments…
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Effective 1 March 2025: New National Minimum Wage

Effective 1 March 2025: New National Minimum Wage

The National Minimum Wage (NMW) for each “ordinary hour worked” has been increased from 1 March 2025 by 4.4% from R27,58 per hour to R28,79 per hour.  Domestic workers: Assuming a work month of 22 days x 8 hours per day, R28,79 per hour equates to R230,32 per day or R5067,04 per month. Of course, this is just a bare legal minimum: the Living Wage calculator will help you check whether you are actually paying your domestic worker enough to cover a household’s “minimal need” (adjust the “Assumptions” in the calculator to ensure that the figures used are up-to-date). Disclaimer: The information provided…
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Employers: How to Avoid Paying Severance Pay on Retrenchment

Employers: How to Avoid Paying Severance Pay on Retrenchment

“Only in our dreams are we free; the rest of the time we need wages.” (Terry Pratchett) Retrenching employees can be an expensive business. You’ll have to pay each employee a minimum of one week’s pay for each completed year of ongoing service, and that total liability can add up alarmingly.A recent Labour Court ruling has however set out clear guidelines for avoiding that cost by arranging alternative employment for your retrenched employees. A lost cleaning contract and a raft of retrenchments A contract cleaning services company, fearing it would lose a particular contract in an upcoming tender process, warned…
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Fired for not Working on the Sabbath

Fired for not Working on the Sabbath

“One of the hallmarks of an enlightened egalitarian society is the right to freedom of religion.” (Extract from judgment below) Our courts do not tolerate unfair discrimination in the workplace, and employers need to tread particularly carefully when it comes to the concept of “automatically unfair discrimination”. Get that one wrong and you could be penalised with an order to pay your employee two years of earnings as compensation. What is “automatically unfair discrimination”? A dismissal is automatically unfair if based on any “arbitrary ground”, including, but not limited to, a person’s race, gender, sex, pregnancy, marital status, family responsibility,…
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Employers: It’s November Again. Must You Pay 13th Cheques?

Employers: It’s November Again. Must You Pay 13th Cheques?

“The best investment you will ever make are your employees” (Peter Drucker) As the end of the year approaches, many employees are eagerly awaiting their 13th cheque or year-end bonus. However, not every employer is in a position to pay bonuses, and this can lead to disappointment, disputes, or even legal action if expectations aren’t managed properly. Read on to find out whether you’re legally required to pay a bonus, and how you can avoid potential conflict. What does the law say? There’s a common misconception that South African law obliges employers to pay annual bonuses. This is not true.…
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Protect Your Employees from Harassment and Abuse – or Pay the Price

Protect Your Employees from Harassment and Abuse – or Pay the Price

“It takes leadership to improve safety.” (Jackie Stewart, Formula 1 legend) One of your key duties as an employer is to create a working environment in which your employees are protected from harassment and abuse. As a recent High Court judgment graphically illustrates, dropping the ball will cost you dearly. Meet the protagonists The cast of characters in this unhappy tale features: The employer: A private hospital in Bloemfontein, operated by a national healthcare group. The employee: A Surgical Theatre Manager employed to oversee and manage the hospital’s operating theatres, manage the theatre staff and monitor patient care in the theatres.…
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It’s Sick Leave Season – Can You Reject a Dodgy Doctor’s Sick Note?

It’s Sick Leave Season – Can You Reject a Dodgy Doctor’s Sick Note?

“Many people including workers in South Africa do not have the wherewithal to determine between a qualified doctor, an unqualified doctor and one who is operating illegally. That is why there are regulatory and law enforcement bodies to whom suspicious practices by doctors should be reported.” (Extract from judgment below) “Sick leave season” is still in full swing and many employers will be struggling with high levels of absenteeism. There’s no problem of course with genuinely ill staff staying at home to recover – no one wants them at work spreading their germs around or damaging their health! But what…
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Cannabis Policies in the Workplace: A Delicate Balancing Act

Cannabis Policies in the Workplace: A Delicate Balancing Act

“It is declared that the [employer]’s Alcohol and Substance Abuse Policy is irrational and violates the right to privacy in section 14 of the Constitution, to the extent that it prohibits office-based employees that do not work with or within an environment that has, heavy, dangerous and similar equipment, from consuming cannabis in the privacy of their homes.” (Court order, below) A recent Labour Appeal Court (LAC) decision highlights the complexities of workplace policies regarding cannabis use and provides guidelines to employers and their employees on the intersection of individual rights and workplace policies. Unfairly dismissed for off-duty cannabis use…
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