Quote Originally Posted by jilli13 View Post
My question is can the company do force them to take a loan to do their jobs?
I think the real issue here is whether the company: (a) forces the employees to take out loans, or (b) enforces employment contracts that require the employees to have their own tools. The two are related, but there is an important distinction.

For example, what happens if an employee does not have their own tools and refuses to take out a loan? Disciplining (or dismissing) them for not taking out a loan might be deemed an unfair labour practice since it makes debt a condition of employment (it could also create complications in terms of the National Credit Act - e.g. if the loan that the employees are forced to take out constitutes reckless lending). However, disciplining (or dismissing) them for not having their own tools is less open to dispute.

Put differently, the company should emphasise the ends (i.e. employees having their own tools) rather than the (possible) means to those ends (i.e. taking out a loan).

As an aside, insisting that employees purchase their tools from pre-designated suppliers could fall foul of the amended Basic Conditions of Employment Act (section 33(A) prohibits employers from requiring "an employee to purchase any goods, products or services from the employer or from any business or person nominated by the employer" unless the employee receives a financial benefit and the price of the goods is fair).