Kloppers Inc. Podcast

Under Section 197 of the Labour Relations Act (LRA), when a business is sold as a going concern, employees' contracts transfer automatically to the new employer, preserving rights, obligations, and continuity of service. The Labour Appeal Court case of Africa Online Operations v Scanlon (2024) reaffirmed these protections, even in cases of liquidation, provided business operations continue. Employers cannot alter terms without agreement, ensuring employees' rights remain safeguarded.

In this episode, we unpack three major legal and regulatory developments shaping South Africa's business and property landscape. First, we explore the Deeds Registries Amendment Act of 2024, a landmark step towards modernising the land registration system. From clarifying technical ambiguities to introducing penalties for unauthorised transactions, the Act lays the groundwork for a fully electronic, streamlined land registration system that promises greater efficiency and accountability. Next, we turn to employee rights during business transfers under Section 197 of the Labour Relations Act. Using recent case law, we examine how employees are protected when businesses change hands, ensuring continuity of service, preservation of benefits, and fairness in the face of insolvency or restructuring. Finally, we discuss beneficial ownership reporting requirements for trusts. While active trusts must now disclose detailed ownership information to the Master of the High Court, dormant and deregistered trusts enjoy exemptions—provided they formally declare their status. We highlight compliance obligations and the risks of non-reporting.

In this episode, we dive into the taxation of capital gains in multi-tiered trust structures, focusing on the Constitutional Court's landmark Thistle Trust v SARS case. We explain how the Conduit Principle usually allows income or gains to flow through to beneficiaries, reducing tax liability, but highlight the limits when one trust distributes gains to another. The Court confirmed that only the first beneficiary trust can apply the Conduit Principle, leaving subsequent trusts liable for tax. A must-listen for anyone involved in trust structuring, estate planning, or tax strategy in South Africa.

In this episode, we explore whether a parent can challenge or vary a maintenance order when they are already in arrears. We discuss the duty to support children under the Maintenance Act, the different types of maintenance orders, and the common challenges faced when financial circumstances change. We explain why applications for variation are generally barred if arrears exist, with only limited exceptions. A vital guide for understanding rights, responsibilities, and remedies in South African maintenance law.      

In this episode, we unpack whether a sale in execution can move forward while an appeal is still pending. We explain the general rule of suspension during appeals, the role of the sheriff in executing judgments, and the exceptions provided in both the Superior Courts Act and the Magistrates Courts Act. Listeners will gain clarity on when courts may permit execution to proceed, the importance of proving irreparable harm, and the safeguards such as security requirements. A practical guide for anyone navigating appeals and enforcement of judgments.