Employees of a company that is placed into business rescue remain employed and remain entitled to protection from unfair dismissal and unfair labour practice. But there is a caveat, explains Bradley Workman-Davies.
What happens to employees when their employer is placed into business rescue? On the one hand the good news for labour and for unions is that the appointment of the business rescue practitioners has no impact whatsoever on the underlying contracts of employment, and the employment relationships continue with the entity in business rescue as if business rescue had not happened at all. As such, employees who are employed by a company that is placed into business rescue remain employed and remain .
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