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The interaction between corporate rescue and labour legislation: lessons to be drawn from the South African experience
Author(s) -
Loubser Anneli
Publication year - 2004
Publication title -
international insolvency review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.125
H-Index - 7
eISSN - 1099-1107
pISSN - 1180-0518
DOI - 10.1002/iir.124
Subject(s) - legislation , context (archaeology) , unintended consequences , business , law , law and economics , political science , economics , history , archaeology
One of the main advantages of a successful corporate rescue is that it prevents or at least limits the job losses caused by a business failure. For this reason, labour legislation which is designed to protect the employees of a company in the event of its winding‐up, should take cognisance of the effects such legislation may have on any rescue attempts. As the recent experience in South Africa has shown, ignoring corporate rescue in legislation dealing with labour law in the context of the winding‐up of a company may have the unintended effect of seriously hampering any corporate rescue attempt. Copyright © 2004 John Wiley & Sons, Ltd.