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Section 197, second generation outsourcing and service transfers: the future of Section 197 in South Africa - an update

3rd March 2011

By: Creamer Media Reporter

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Since its introduction into the amended Labour Relations Act, 66 of 1995 (the LRA) in 2002 and the pronouncement on its application by the Constitutional Court in the case of National Education Health & Allied Workers Union (NEHAWU)v University of Cape Town & Others (2003) (CC), labour and commercial practitioners are familiar with Section 197 as having application to transfers of businesses. The provisions relating to employees and their transfer in terms of Section 197 are also common in commercial transactions.

Written by Anastasia Vatalidis and Bradley Workman-Davies, Directors at Werksmans Attorneys

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