South Africa Case Law

PE Pack 4100 CC v Sanders and Others (PA 08/10)

PE Pack 4100 CC v Sanders and Others (PA 08/10) [2013] ZALAC 1; [2013] 4 BLLR 348 (LAC); (2013) 34 ILJ 1477 (LAC) (22 January 2013)

Court

Labour Appeal Court

Case number

PA 08/10

Judges

Davis JA, Hlophe AJA, Landman AJA

The majority held that section 197 of the Labour Relations Act does not apply to the termination and replacement of franchise agreements. The appellant did not acquire the business as a going concern from the previous franchisees; rather, the franchisor terminated the old franchise agreements and entered into new ones with the appellant. The franchisor retained ownership of the core assets and infrastructure, and there was no transfer of business components from the old franchisees to the new franchisee. The franchise relationship is fundamentally different from outsourcing arrangements, as t…

Source excerpt

• Transfer Of Business
• Section 197 Lra
• Franchise Agreements
• Automatic Transfer Of Employment
• Outsourcing Jurisprudence