This thread made interesting reading. I agree that sometimes we over complicate relatively simple issues, and I thought Greig nailed it on page one. The discussion that followed was very informative and one could learn lots from these academic opinions. My reply to OP's original question would be, yes, you have all the rights afforded an employee based on current legislation and recommend you a) discuss your future employment with your employer, using your original employment contract as departure point, failing a favourable outcome, b) resign and lodge a constructive dismissal dispute at CCMA and c) find alternative employment. Where the battling employer finds the money to pay for his illegal action is of no consequence here, and it is my opinion that the CCMA will rule against him in this case.