Business Vs Franchise Transfer: What Happens To Employee Contracts?
SA Franchise Brands
FEBRUARY 25, 2025
Business Vs Franchise Transfer: What Happens To Employee Contracts? Section 197 of the Labour Relations Act, 66 of 1995 (LRA) provides that “if a transfer of a business takes place, … the [new owner of the business] is automatically substituted in the place of the [previous owner] in respect of all contracts of employment in existence immediately before the date of transfer”.
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