Labour Relations

Labour Relations:

Individual Assignment:

Presented by: Estené Smith

Due Date: 18 February 2013

Word Count: 1124

Identify and discuss what you consider to be the most important principles when applying labour relations concepts and the requirements of the labour relations concepts and the requirements of the labour law to the management of people in the workplace.

The labour relations act in South Africa came into effect in 1995. This is to ensure that workers and employees are protected, and everyone (both employers and employees) knows what their rights and responsibilities are.

I will discuss outsourcing in particular, as the subject matter interests me. I have been part of an outsourcing process and our company has also recently acquired more staff through an outsourcing process (a facility management contract which we were awarded).

This event is dealt with in section 197 of the Labour Relations Act (LRA). 1

The first important requirement is to identify if the outsourcing / merger will classify as a going concern and therefore the employees are protected in terms of section 197. With TFMC’s outsourcing from Telkom in the year 2000, we were seen as a going concern.

What then determines if it is a going concern or not? The act does not clearly stipulate this, but there have been a number of court cases that can be used as common law. Basically, if the new company runs in pretty much the same fashion as before, it serves the same client market and the original company does transfer the equipment and assets related to that function to the new owner/ management it can be seen as a going concern. Furthermore, if the transfer is not seen as permanent, it will not be regarded as an outsourced entity. 2

For purposes of this assignment, I will focus only on outsourced entities seen as a going concern.

What does section 197 mean to the employer / employee? Firstly, the new employer must take over all the employees and secondly, all the...