The transfer of an undertaking as a going concern in South Africa was regulated by Common law until 11 November 1996 when the new Labour Relations Act 66 of 1995 came into effect. Section 197 of the said Act now provides for the transfer of employment contracts in these circumstances. However, the said section is very vague and badly drafted leading some academics and practitioners to petition for its removal from the legislation. This short contribution highlights the importance of such a section in labour legislation, and encourages the amendment of this section to provide for even greater job security than at present. A short analysis of socio-economic values and policies in South Africa is made in order to substantiate the need to safeguard employees' rights in these circumstances and a brief overview of the main shortcomings of the section is also given. Finally, the Labour Court and Labour Appeal Court's jurisprudence of this issue up to date is illustrated by means of case law and comments.
International Journal of Comparative Labour Law and Industrial Relations