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October 28, 2024

Retirement Age: When Must You Retire?

 


Eventually, everyone needs to stop working. Some people prefer to retire early, while others choose to work for as long as possible. Whatever your preference, it's important to know your rights and options.

Retirement Age

Labour laws don’t directly address retirement age. However, they do state that no one should face unfair discrimination because of their age. This means that the employer and employee must agree on a retirement age.

Here are three situations you might encounter:

·        Your employment contract requires you to retire at a certain age.

·        You and your employer have agreed on a retirement age, or there is a company norm.

·        There is no mention of retirement in your contract and no agreement on retirement age.

If your employment contract specifies a retirement age, then you must retire at that age without needing additional notice from your employer.

If the retirement age isn’t in the contract but is agreed upon or follows company norms, your employer can give you notice to retire. The notice period will match the termination notice period in your contract.

Organizational norms for retirement age are not conclusive. Generally, "normal" retirement ages are 55, 60, or 65. However, this can vary and might be indicated by:

·        Company provident or pension fund rules (though not definitive).

·        Company policies.

If there’s no retirement age mentioned in your contract and no organizational norm, you can keep working until you can’t perform your job effectively. Your employer can only terminate your contract for reasons like misconduct, operational requirements, or incompetence, following labour laws and your contract’s procedures. Courts have ruled that it’s unfair discrimination to terminate employment solely because of age.

Working Beyond Retirement Age

There’s no legal certainty about the rights of employees who work past retirement age. Therefore, it’s best for employers and employees to clearly define employment terms after the retirement age, such as the duration of continued work and notice required for termination.

 

October 24, 2024

Effective Strategies for Approaching an Attorney When Facing Legal Issues


How to Approach an Attorney When Facing a Legal Problem: Setting Ground Rules for a Successful Partnership

Introduction

When dealing with a legal issue, finding the right attorney is essential. Establishing clear communication and expectations from the start can make a significant difference in your case's outcome. This guide outlines how to effectively approach an attorney, what to expect during your initial consultation, and how to set up a productive working relationship.

Steps to Approach an Attorney

1.        Identify Your Legal Issue

Before you reach out to an attorney, determine the specific area of law related to your problem. This could be family law, business law, or personal injury, among others. Think about what you want to achieve with the attorney’s help. Consider specific objectives, such as:

  • Reviewing a contract
  • Drafting a legal document
  • Suing someone or responding to an action brought against you
  • Negotiating an agreement
  • Helping you with a family issue

2.        Research is vital

If you have not received a recommendation from family or a friend, conduct an online search to find an attorney that fits your needs. Check his or her reviews on various social media platforms.

3.        Schedule an Initial Consultation

Most attorneys offer an initial consultation, often for free or at a reduced fee. Use this meeting to discuss your situation and evaluate whether the attorney is a good fit for your needs. Often, you’ll start with a brief phone call. If that goes well, arrange an in-person or virtual meeting. 

3. Prepare for Your Meeting

To make the most of your first meeting, bring the following:

  • A Pen and Paper: Take notes during your discussion.
  • A List of Questions: Write down your questions in advance to ensure you cover everything important.
  • Payment: If there’s a fee for the consultation, be prepared to pay.
  • Case Summary: Provide a concise description of your case, covering key facts like names, timelines, and status.
  • Relevant Documents: Bring any documents that pertain to your case, such as contracts or reports.
  • You’ll need to provide FICA documents. 

4.        During the meeting:

  • Be On Time: Respect the attorney’s schedule by arriving punctually.
  • Dress Appropriately: While you don’t need to wear a suit, choose business casual attire.
  • Listen Actively: Allow the attorney to guide the discussion after you present your case.
  • Be Honest: Share all relevant details, even if they seem unfavourable. This will help the attorney understand your case better. 

5.        Discuss Conflicts of Interest

Ask the attorney if there are any potential conflicts of interest that could prevent them from representing you. This is crucial for ensuring they can act in your best interests.

6.        Questions to Ask Your Attorney

When meeting with a prospective attorney, consider asking:

  • Where practical, do you approach matters holistically – hoping for a win-win outcome?
  • How long have you practised in this area of law?
  • How many similar cases have you handled?
  • What do you need to evaluate my case?
  • What are my options for moving forward?
  • What challenges do you foresee in my case?
  • How would you handle my situation?
  • Will you handle my case personally or pass it on to someone else?
  • What is the typical timeline for resolving cases like mine?
  • What additional information do you need from me?
  • What immediate steps should I take? 

7.        Understand the Fee Structure

Clarify the attorney’s fees and payment methods:

  • Fee Arrangements: Know whether they charge by the hour, a flat fee, or on a contingency basis.
  • Retainer Agreement: If applicable, review any contracts that outline the scope of their services and fee structure. 

8.        Clarify Next Steps

At the end of your meeting, clarify what happens next:

  • Follow Through: Be ready to provide any additional information or documents requested by your attorney.
  • Communication Preferences: Discuss how the attorney prefers to communicate moving forward, whether via email or phone.
  • Stay Engaged: Schedule regular check-ins to keep updated on your case's progress. 

Conclusion

Approaching an attorney with clear expectations can lead to a more effective and satisfying legal experience. By setting ground rules for fees, communication, and involvement, you create a strong foundation for a successful partnership. Remember, you’re not obligated to hire an attorney after the first meeting; take your time to ensure you choose the right fit for your legal needs.

 

 

October 16, 2024

Understanding Failed Legacies and Estate Distribution in South African Succession Law


Introduction

This article explains the different types of legacies, what happens to the leftover assets in an estate, and the legal outcomes when legacies fail.

Intestate succession

If there is no will the estate is distributed according to the rules of intestate succession.

The terms heir and beneficiary refer to different roles in inheritance, and understanding their distinction is important:

  • Heir: An heir is someone who is entitled by law to inherit from a deceased person if that person dies without a will (intestate). Heirs are typically close relatives, such as spouses, children, or parents, and their entitlement is governed by the rules of intestate succession. Heirs may inherit the deceased’s estate automatically under these rules.
  • Beneficiary: A beneficiary is someone who is specifically named in a will to receive certain assets or property. Beneficiaries are chosen by the testator (the person making the will) and may or may not be relatives. Unlike heirs, a beneficiary’s rights come from the will, not from legal entitlement.

In short, heirs inherit by law when there is no will, while beneficiaries inherit based on what is stated in a will.

Testate succession

The person who writes a will is called a testator. They leave their estate to people they choose, called beneficiaries. This can be done in two main ways:

·         The testator can leave the remaining part of their estate (the residue—being the value of all assets in the estate minus the expenses incurred in winding up the estate) in percentages to beneficiaries.

·         The testator can also leave specific items or amounts of money to certain beneficiaries, and whatever is left (the residue) to other named beneficiaries.

Legacies

A "legacy" is a gift left to someone in a will and can be general or specific.

Specific Legacy

  • A specific legacy is when a particular item or asset is clearly named in the will.
  • Example: A person leaves a specific painting or car to a named individual.
  • For the legacy to work, the asset must still exist when the person dies.

General Legacy

  • A general legacy is not tied to a specific item but rather a sum of money or a general type of property.
  • Example: A person leaves R50,000 to a beneficiary from their estate.
  • Unlike a specific legacy, the money or property can come from any part of the estate that has enough value.

The Residue of the Estate

After distribution of all specific and general legacies, the remaining assets are called the residue of the estate. The residue includes anything that hasn’t been specifically mentioned in the will or used to pay off debts.

  • Example: If an estate includes a house, a car, and R100,000, and specific legacies are made for the car and R50,000, the residue will be the house and the remaining R50,000.

Distribution of the Residue

  • A will usually names one or more beneficiaries to inherit the residue of the estate.
  • If there are several beneficiaries, the residue is split according to the terms of the will.
  • If no heirs are named for the residue, the estate follows the intestate succession laws, which determine how the assets are shared among family members.

What Happens When a Legacy Fails?

A failed legacy occurs when a bequest cannot be carried out. When this happens, the asset intended for the legacy is reallocated to the residuary estate. Understanding why legacies fail and what happens afterward is important to ensure the estate is distributed smoothly.

Reasons for a Failed Legacy

  • Non-Existence of the Item: The item may no longer exist at the time of death, for example, if it was sold or destroyed.
  • Death of the Beneficiary: If the named beneficiary dies before the person who wrote the will, the legacy fails unless a replacement beneficiary is named.
  • Disqualification: A beneficiary might be disqualified from receiving a legacy, for example, if they caused the death of the testator.
  • Impossibility or Illegality: If the conditions tied to a legacy are impossible to meet or illegal, the legacy cannot be fulfilled.

Legal Consequences of a Failed Legacy

  • When a legacy fails, the asset becomes part of the residuary estate. It is then distributed according to the rules laid out in the will for the residue.
  • If the will does not specify how to handle the residue, the estate is distributed according to intestate succession laws, which follow a set order of family members.

Handling Failed Legacies

There are important things to consider when a legacy fails, especially regarding how the estate is distributed.

No Substitute Beneficiary

  • If no alternate or substitute beneficiary is named in the will, the failed legacy is absorbed into the residuary estate.
  • Example: A person leaves a car to a nephew, but if the car is sold before the person dies and no replacement is named, the value of the car is added to the residue. This benefits the heirs who inherit the residue.

Conclusion

In South African law, legacies are an important part of how estates are distributed according to the wishes of the deceased. However, if a legacy fails because the asset no longer exists or the beneficiary has died, the asset doesn’t just disappear. Instead, it becomes part of the residuary estate, ensuring that the overall value of the estate is preserved and distributed fairly.

Understanding these concepts is crucial for proper estate planning. It helps ensure that even if a legacy fails, the testator’s wishes are still respected, and their assets are fairly shared among their heirs.

 

October 15, 2024

Understanding the Rights and Obligations of Creditors and Debtors in South Africa


 
Introduction

In South Africa, the National Credit Act (NCA) serves as a guiding framework for creditors and debtors. It regulates how credit information is accessed, ensuring that consumer rights are upheld while also allowing creditors to manage risk and recover debt. This article explores the rights and obligations of creditors and debtors, including when a creditor can conduct a credit check, when it is unnecessary to obtain permission, the process of listing a debtor as a bad payer, and what steps an aggrieved debtor can take.

Rights and Obligations of Creditors and Debtors

The NCA ensures that both creditors and debtors operate within a regulated environment, protecting consumer information and preventing unfair practices.

Obligations of Creditors

Creditors have the following obligations under the NCA:

  • Obtain Consent for Credit Checks: With some exceptions, a creditor must secure the consumer's explicit consent before conducting a credit check. This ensures that the debtor's personal information is protected.
  • Notify Before Listing as a Bad Payer: Creditors must notify debtors 20 business days before listing them as a bad payer with a credit bureau, allowing the debtor time to rectify the situation or dispute the listing.
  • Correct or Resolve Disputes: If a debtor challenges their listing, the creditor must work with the credit bureau to correct any inaccuracies.

Rights of Debtors

Debtors are entitled to several protections under the NCA, including:

  • Right to Consent: A debtor's credit information cannot be accessed without their explicit consent, except in limited circumstances.
  • Right to Dispute Listings: Debtors can challenge listings with credit bureaus if they believe the information is incorrect.
  • Right to Privacy: A debtor’s financial information cannot be shared or used without their permission unless legal exceptions apply.

 Conducting Credit Checks: Consent and Exceptions

The NCA makes it clear that conducting credit checks without consent is illegal, with a few exceptions that permit creditors to access credit information without prior permission.

When Creditors Can Conduct Credit Checks

In most situations, creditors must obtain consent before running a credit check. The general rule is that consumers must explicitly agree to have their credit information accessed by signing a contract or providing written consent.

Exceptions to Obtaining Consent

There are situations where a creditor or authorized party may access credit information without the debtor’s prior consent. These include:

  • Legal Requirements: A court order or legal requirement can compel a credit bureau or creditor to access credit information without consent.
  • Debt Collection: If a registered debt collector is acting on behalf of a creditor to recover debts, they may perform a credit check without permission, but this must be done in accordance with the law.
  • Fraud Prevention: Credit checks may be conducted without consent in cases where there is a suspicion of fraud, helping creditors assess the risk of fraudulent activity.

These exceptions ensure that creditors can still protect themselves and recover debts, even when consent is not obtained, but they must always act within the confines of the law.

Listing Debtors as Bad Payers

If a debtor defaults on payment, creditors have the right to list the individual or business as a bad payer with credit bureaus. This listing negatively affects the debtor’s credit rating and stays on the record for at least two years.

Steps to List a Debtor

Creditors must follow the process outlined in the NCA before listing a debtor as a bad payer:

  • 20-Day Notice: Creditors must provide the debtor with a written notice of their intention to list a default. This notice can be sent via registered mail or email, and the creditor must prove that the notice was received.
  • Dispute Option: During the 20-day notice period, the debtor has the right to dispute the listing by challenging the accuracy of the information.
  • No Notice for Judgments: If a court judgment has been passed against the debtor, the creditor can list the judgment without providing prior notice.

Default listings have serious consequences, affecting the debtor’s ability to access further credit and possibly impacting employment opportunities.

Rights of an Aggrieved Debtor

A debtor who believes they have been unfairly listed with a credit bureau has several options to rectify the situation.

Steps to Challenge a Listing

  • Check Credit Report: If a debtor suspects incorrect information on their credit report, they should first check the accuracy of the report by contacting the credit bureau.
  • Lodge a Dispute: If there is an error, the debtor can lodge a dispute with the credit bureau. The bureau must provide a reference number and resolve the dispute within 20 business days.
  • Escalate to the Credit Ombud: If the credit bureau fails to correct the mistake or the debtor is dissatisfied with the outcome, they can escalate the issue to the Credit Ombud. The Ombud resolves disputes between consumers and credit bureaus or credit providers.

The Credit Ombud is a free service available to consumers and businesses and can be contacted via phone or their website.

Conclusion

The National Credit Act in South Africa provides a balanced framework to protect both creditors and debtors. Creditors are required to obtain consent for credit checks and notify debtors before listing them as bad payers, while debtors have the right to dispute incorrect listings and seek resolution through the Credit Ombud. By following the guidelines set out in the NCA, both parties can ensure a fair and transparent credit process that respects consumer privacy and upholds legal obligations.

 

October 11, 2024

Understanding Life Rights for the Elderly Under the Housing Development Schemes for Retired Persons Act 65 of 1988


Introduction to the Housing Development Schemes for Retired Persons Act

The Housing Development Schemes for Retired Persons Act 65 of 1988 (HDSRP) is a significant piece of legislation in South Africa that regulates housing for the elderly, particularly those aged 50 and older. This Act introduces the concept of "life rights," enabling seniors to secure a stable living environment without owning the property outright. This framework is designed to provide security, independence, and access to necessary services for elderly residents, creating a supportive and sustainable community.

What are Life Rights?

Life rights allow individuals to purchase the right to live in a designated housing unit for the remainder of their lives. These rights cannot be sold or transferred; they are personal to the holder and their spouse. This model ensures that older individuals can maintain a sense of independence while having access to essential amenities and support.

Key Protections for Elderly Residents

The HDSRP offers several protections and rights to elderly homeowners:

·         Exclusive Right to Occupy: Provided the resident complies with occupancy rules, life right holders enjoy the exclusive right to occupy their units for life, ensuring they have a guaranteed place to live.

·         Access to Common Property: Residents can use and enjoy communal areas and facilities, enhancing their quality of life.

·         Protection Against Eviction: The Act safeguards against unjust eviction, providing significant security for life right holders.

·         Disclosure Requirements: Developers must provide comprehensive information regarding life rights agreements, including monthly levies and service costs, ensuring residents are informed about their financial obligations.

·         Legal Protections: Life right holders have rights comparable to those in registered leases, ensuring their interests are prioritized in property matters.

·         Financial Implications of Life Rights: Entering into a life rights agreement typically allows seniors to avoid many costs associated with full property ownership, such as transfer fees and VAT. The developer retains ownership of the property and is responsible for its maintenance and management.

Obligations of Life Right Holders

While life right holders enjoy numerous benefits, they also have responsibilities:

  • Monthly Levies: Residents must pay monthly levies contributing to the scheme’s maintenance and administration.
  • Interest-Free Loan Structure: Typically, entering a life rights agreement involves providing an interest-free loan to the developer, repayable upon termination of the agreement or when a new beneficiary takes over.

Financial Settlement Upon Passing

Upon the death of a life rights holder, the right to occupy the unit generally reverts to the developer. The family does not inherit the property but may be eligible for a financial settlement that typically results in the estate receiving a percentage of the original purchase price or a percentage of any profit from reselling the unit.

It is crucial for families to review the specific terms outlined in the life rights agreement to understand what compensation they may receive upon the holder's passing.

Conclusion

The Housing Development Schemes for Retired Persons Act 65 of 1988 establishes a robust framework to protect the rights of elderly homeowners in retirement schemes. By ensuring exclusive occupancy rights, financial transparency, and management control, the Act aims to create a secure living environment for retirees while holding developers accountable for their obligations. Life rights not only provide stability and security for seniors but also foster a sense of community, allowing them to live their later years with dignity and independence.