Employee rights in business transfer under scrutiny
The Constitutional Court has been called upon to adjudicate on whether the rights of employees in the transfer of a business as a running concern are still guaranteed on a second-generation transfer, notes a Business Day report.
The section in dispute, section 197 of the Labour Relations Act, says all the rights and obligations between the old employer and an employee at the time of the transfer continue in force as if they had been rights and obligations between the new employer and the employees. In this case, SAA concluded an agreement with cleaning services company LGM for the outsourcing of the infrastructure and support services maintenance of SAA. In 2007, SAA gave notice to LGM for the termination of the outsourcing agreement. Lawyers for the Aviation Union of SA said the Constitutional Court held in an earlier judgment that the purpose of the section was premised on the continuity of employment of workers. 'It is submitted that if section 197 is interpreted not to apply to second-generation outsourcing, the object sought to be achieved by the enactment of section 197 of the LRA will be frustrated.' According to the report, the SA Transport and Allied Workers Union said the SCA interpretation meant that once primary outsourcing had occurred, the workers had no guarantee of protection against job losses in the event that any secondary outsourcing occurred. Full Business Day report