Automatic termination clauses feature in employment contracts, ostensibly intended to operate as a mechanism by which an employment relationship can be terminated. Automatic termination clauses are per se not illegal and can actually, in certain respects, be permissible.
On 01 August 2014 the Employment Equity Amendment Act of 2013 (EEAA) took effect bringing with it material changes to the Employment Equity Act of 1998 (EEA). The changes were in accordance with the International Labour Organisation’s (ILO) Convention(s) and other international labour standards binding on South Africa.
On 01 January 2015 significant legislative changes to South African labour law took place when provisions of the Labour Relations Amendment Act of 2014 (LRAA) were effected. The amendments drastically changed the regulation on inter alia employees working via temporary employment services i.e. labour brokers, part time employees, and employees working under fixed term contracts, the latter of which is the topic of discussion.
A common issue raised in many labour disputes is whether a person is an employee or an independent contractor. The nature and consequences of either are fundamental. An employer/employee relationship is an entirely distinctive relationship governed and/or regulated by our labour legislation which is in contrast to an independent contractor relationship governed by our principles of common law.
The enforceability of agreements to agree have been the source of much debate between legal practitioners and the courts alike. There has been development of the common law regarding whether a positive obligation on a party to a contract to negotiate in good faith exists.
For many years, trusts have been used as estate planning vehicles by individuals who wish to avoid certain tax consequences, specifically estate duty and donations tax. Trusts assisted in the sense that an individual could reduce his estate value by transferring assets to a trust, generally against an interest free loan or a loan with interest charged below market rates, and thereby decrease the value of his estate avoiding excessive estate duty charges.