What happens if a business is forced to close because of Covid-19 and it
becomes impossible for an employer and employee to perform under an employment
contract? The law states that if both employer and employee are unable to do so, then the
obligations of both parties are suspended, until the lockdown ends, and it becomes possible for work to continue.
Before Covid-19, South African employment law and labour courts generally found
that the employer had to pay an employee a salary even when the employee did
not render services, e.g. in war conditions, where the free movement of
employees was restricted.
Now, under the current government-imposed lock-down and
limitation of economic activity, employees are restricted from movement unless
working in enterprises which are recognised as essential or providing permitted
services.
If the employer is not such an enterprise, the employee is
placed on temporary lay-off, or unpaid leave. To assist vulnerable workers, who
are subject to a temporary lay-off, resulting from the lockdown, the South
African government has made R500 billion available, through schemes such as the
Temporary Employee Relief Scheme, administered by the Unemployment Insurance
Fund.
If an employer is obliged to trim its workforce because it
has become impossible to operate, if it seeks to dismiss any employee, it must
still ensure that any dismissal is fair and must follow due process laid down
by our employment laws.
