Benefits not sounding so good

Date: Jan 24, 2012

Benefits not sounding so good

Date: Jan 24, 2012

Section 197 of the Labour Relations Act states that upon the transfer of a business as a going concern the new employer must provide the transfered employees with conditions or circumstances of work that are not less favourable than those that existed before the transfer. Would the medical aid and pension fund be considered less favourable? Probably not. However, upon transfer, the employment contracts are not cancelled and as such they remain unchangd. Therefore the new employer cannot force you to join the schemes but must negotiate and consult properly for such inclusion.

Date: Jan 26, 2012

Thank you for your advice, I do understand that a medical aid and a provident fund will be a huge advantage especially if you did not have any of the before mentioned.

The problem that the majority of the employees face is that their current salaries are not sufficient enough to cover these benefits (on their own or via the company). According to the representative, the new company will pay the company’s share of the benefits and cover half of the loss on the current take home salary.

It still leaves the employee with a loss which he/she cannot afford.

Do the employees have a right to demand the same take home salary after the new deductions or will they have to accept the loss?

Date: Jan 31, 2012

Labour Protect wrote:
Section 197 of the Labour Relations Act states that upon the transfer of a business as a going concern the new employer must provide the transfered employees with conditions or circumstances of work that are not less favourable than those that existed before the transfer. Would the medical aid and pension fund be considered less favourable? Probably not. However, upon transfer, the employment contracts are not cancelled and as such they remain unchangd. Therefore the new employer cannot force you to join the schemes but must negotiate and consult properly for such inclusion.

Thank you for your advice, I do understand that a medical aid and a provident fund will be a huge advantage especially if you did not have any of the before mentioned.

The problem that the majority of the employees face is that their current salaries are not sufficient enough to cover these benefits (on their own or via the company). According to the representative, the new company will pay the company’s share of the benefits and cover half of the loss on the current take home salary.

It still leaves the employee with a loss which he/she cannot afford.

Do the employees have a right to demand the same take home salary after the new deductions or will they have to accept the loss?

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