REATILE Mojakisane from Soweto worked at an insurance company that merged with another company earlier this year.
Instead of retrenching, the company created a sister company and transferred excess staff through a Section 197 transfer.
They were made to sign forms, which amounted to resignations, and to sign new contracts at the new company.
The new contract’s benefits were different. Employees complained to new and old managers and were told to accept the situation or sign mutual separation documents.
WHAT I DID
I contacted Scorpion Legal Protection for professional legal advice.
Their attorney said employees in this situation ought to retain rights and benefits and may
refer a dispute to the CCMA as an unfair labour practice.
If the CCMA gives an award in favour of employees and the employer ignores it, they should return to the CCMA. It will issue a court order as the employer will be in contempt.
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