CCMA Hearing

[WR10]

Hi,

My friend just sold his business and the 2 staff are now taking him to the CCMA.

The new owner agreed when buying the business that the staff will be employed by him so they are currently working and so they were never retrenched.

My friend had to sell the business after falling heavily in debt and therefore all the money received was used for the debt.

What can he do since he did pay out leave money and they were claiming money for long service. They worked for +-8 years for the business.

Please advise

thank you

 

[Bona Botse]

What are they taking him to the CCMA for?

 

[SirFooK'nG]

FAIL ... Money just because they worked there for a long time? Get real... CCMA is for unfair labour practice. Nothing unfair there. They received their salaries every month, that is good enough.

 

[WR10]

exactly,

he did make payments on time and every month and they normally get paid leave during december so he paid them for half the year when he sold the business.

The CCMA called and he has a hearing in the 1st week of August,

if he tells them he is bankrupt is there anything that they can do ?

They never mentioned why he requires to be at the hearing but the staff said that they will be going to the CCMA for bonus pay.

 

[Other Pineapple Smurf]

FAIL ... Money just because they worked there for a long time? Get real... CCMA is for unfair labour practice. Nothing unfair there. They received their salaries every month, that is good enough.

+1

LOL, Its an urban myth that you get paid out for long service.

We had the same thing for a staff member we fired (for criminal theft), she took us to CCMA for her "diens geld" (service money). CCMA dismissed the application three times till she got the message.

 

[Other Pineapple Smurf]

exactly,

he did make payments on time and every month and they normally get paid leave during december so he paid them for half the year when he sold the business.

The CCMA called and he has a hearing in the 1st week of August,

if he tells them he is bankrupt is there anything that they can do ?

They never mentioned why he requires to be at the hearing but the staff said that they will be going to the CCMA for bonus pay.

He must go to the CCMA hearing with all the facts in order. Its not a court case, just a hearing so rather informal. Important thing is he just needs to state the facts and present convincing evidence.

He should not stress about it as the CCMA also sides with employers.

 

[Bona Botse]

exactly,

he did make payments on time and every month and they normally get paid leave during december so he paid them for half the year when he sold the business.

The CCMA called and he has a hearing in the 1st week of August,

if he tells them he is bankrupt is there anything that they can do ?

They never mentioned why he requires to be at the hearing but the staff said that they will be going to the CCMA for bonus pay.

Tell your friend to do some reading because from what you've said they really don't have a case at all.

Nothing changes for the staff when the business is sold, they're still employed under the conditions of their contracts. Your friend didn't even have to pay them for half the year, as that would be the responsibility of the new owner at the end of the year.

I think your friend is not telling you the whole story here.

 

[WR10]

it was a take away business and not sure of any contract that the staff signed

but he is bankrupt now and he is stressing as well, but will tell him to go to the hearing and explain his side.

thank you

 

[quovadis]

My understanding of this is that your friend sold his business (a separate legal entity) and thus, unless otherwise specified in the sale of the business, any employment benefits or bonuses specified would be for the account of the new owner of the business. If the new owner has changed the conditions of employment of these employees (ie. not paying some form of benefit/bonus) this is then a matter between the employees and the new owner of the business.

 

[MickeyD]

My understanding of this is that your friend sold his business (a separate legal entity) and thus, unless otherwise specified in the sale of the business, any employment benefits or bonuses specified would be for the account of the new owner of the business. If the new owner has changed the conditions of employment of these employees (ie. not paying some form of benefit/bonus) this is then a matter between the employees and the new owner of the business.

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