How can we ensure we get paid after liquidation?

Friday September 6 2019



Caroline Mboijana

Caroline Mboijana 

By Caroline Mboijana

My employer is closing shop due to losses and a huge tax debt. We haven’t been paid for two months and worried we might not be paid or get compensated for the job loss. There is a lot of tension, no official communication about our fate. What should we do? Julie.

Dear Julie,
As a priority, contact the person who oversees the handling of people/ employee issues in your organisation and raise your concern’s. They may be aware of the situation, however the point here is you are approaching them and asking that they share information with you in the capacity of responding to a concerned stakeholder.

In addition, I suggest you review your employment contract. Within the contract are specific details, which describe the obligations of the employer to the employee in the event of business liquidation. Having the contract will ensure that your employer is legally bound to honour the terms and conditions of the contract.

If you don’t have a contract, you’ll want to review the Employment Act, which also explains employee rights. An alternative option is to seek guidance from your Local Labour Office. The office will provide guidance on how to proceed based on your specific situation.

Furthermore, the Labour Office will act on your behalf to make sure that your employee rights are not violated and will act as mediator to make sure whatever payments are due to you are actually paid. Given the circumstances of nonpayment in the last two months, I would strongly advise that you start looking for alternative employment. It is unlikely that your employer will be able to resolve the current crisis within a short period of time and it is important you have an earnings stream.

Caroline Mboijana
Managing Director
The Leadership Team (U)
cmboijana@gmail.com

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