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Consultation means that the parties must seek to reach consensus on appropriate means and ways to save the whole business or part of it by the sale of whole or part of it; or transferring it as a going concern in terms of section 197A of the Labour Relations Act; or by a scheme or compromise in terms of section 311 of the Companies Act; or by any other manner.

An employee whose services have been terminated in this manner is entitled to claim severance benefits as if they were dismissed for operational reasons, from the employer's insolvent / liquidated estate in terms of section 41 of the Basic Conditions of Employment Act.

There was a need to protect the rights of employee upon the sequestration or liquidation of their employer.

The termination of contracts of employment for the above reason meant that employees were not considered as dismissed and therefore they did not receive any protection or benefits the law offered e.g.

I've been made redundant due to my employer entering CVA, receivership, liquidation or administration. If you just been told that your company has gone into administration then email me at [email protected] Please give us the name of the company and I will find out what I can for you.

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De BIS HELPLINE There is a helpline to answer your questions.

The number to ring is 08 (calls are charged at local rates).

Any claim brought by an employee to the CCMA would end upon the company or close corporation's final liquidation.

disputes relating to the transfer of employment can be referred to the CCMA or Council for concilliation or to con-arb, it the parties agree to the con-arb process.

Any amount payable is capped at a ceiling of £489 per week.

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