CRA Business News – South Africa
By Gerhard Papenfus
The State of Disaster officially declared by the President, has paved the way for certain emergency measures, such as the current lockdown. It also paved the way for companies to introduce emergency measures in order to alleviate the severe economic consequences brought about by the lockdown.
One of these measures is the introduction of the no-work, no-pay arrangement. Many employers have introduced this measure, partially or fully, depending on the financial position of the company. However, these measures can only apply during the lockdown, while the State of Disaster is in place.
A question which deserves very pertinent attention is …
What happens, on the day after the lockdown is lifted, and all your employees report for duty, being entitled to their contractual salary (and all the other terms and conditions) which applied prior to the lockdown, and that while your business is not in any way functioning near full capacity?
In the days ahead we will be focusing on this and other very important issues. Please follow our follow up blog posts and communication throughout this time.
“If business survives, employment survives.
If business doesn’t survive, employment doesn’t survive”.
Credit to NEASA.