[Question] What are the rules about staff?

[Newretailer]

I am buying a shop that stock only our products and operates under our name, although the current owner has a different company and signed the lease under that name. We will be signing a new lease under our own name.

There are two employees, neither of which have contracts. One does not have legal papers for South Africa. I am not keen on keeping either of them, but understand that legally I do not have a choice? Even without papers? Where do I stand legally?

Also, could someone please recommend a good but reasonably priced laywer In JHB in the northwest areas?

[Newretailer]

Oops, I do know how to spell LAWYER.

[Just Gone]

I may be wrong, but as far as I know you have no obligation to keep the staff. I have bought businesses before but not the staff. You are basically buying the name, stock and possible assets and whatever else you have agreed to, but it is your decision to do with it what you want and you might want to organize things first before trading or have your own staff, therefore you do not need staff for a period of time.

[sterne.law@gmail.com]

The terms of sale would be important.
If you buy a going concern, it comes with staff and all obligations.
If you buy assets - then the previous owner needs to retrench the staff accordingly. it does not mean you will be absolved, because the corporate veil can be pierced. A court can rule that a contract or agreement is nothing but a cover up for real intentions. The other situation is that buying a buying a going concern and buying assets has differnet VAT implications.

If the staff have no contracts, the employer is in violation of teh law, furthermore that does not mean that the employees have no are not employees or are not employed. they would be protected in terms of the basic conditions.
The employee without papers -
Very important - if they have asylum seeking papers, or refugee status they have all the employment rights of a citizien. They may no have the green ID book, but are certainly protected. Again if teh person has no documentation, and is here illegally, then the employer is in contravention of the law.

[sterne.law@gmail.com]

try Steve Bester of Kotze attorneys
012 331 8009


Cheers,
Anthony Sterne