RECOVERING DEBT – POST EMPLOYMENT
6 June 2017
Last month’s issue took a look at short notice and the recourse available to the shorted employer. This month focuses on a similar issue: one of lingering indebtedness. An employee who has resigned or who has been dismissed (for any reasons) ceases to be an employee and, for all intents and purposes, ceases to be beholden to the employer in any way. However, it is possible that this ex-employee is still financially indebted to the company by way of a personal loan or damages caused during employment. Can the employer recover such a debt from the employee and how? There are three possible ways for an employer to recover such debt and all are subject to section 34 of the Basic Conditions of Employment Act.
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