Document background
The Employee Transfer Agreement is a crucial document used in South African business transactions where employees are transferred from one employer to another, commonly occurring during mergers, acquisitions, outsourcing arrangements, or corporate restructuring. It ensures compliance with Section 197 of the Labour Relations Act, which provides for the automatic transfer of employees in cases of transfer of business as a going concern. The agreement details all aspects of the transfer process, including the preservation of terms and conditions of employment, continuity of service, transfer of benefits, and treatment of existing employee obligations. It provides essential protection for both employers and employees by clearly defining rights, obligations, and responsibilities before, during, and after the transfer. The document is particularly important in the South African context due to the strong employee protection framework and the need to ensure compliance with various employment-related legislation, including the Basic Conditions of Employment Act, Employment Equity Act, and Protection of Personal Information Act.
