PSL TEAMS STATUS SALE AND LABOUR RELATIONS
The sale of PSL team status, appears to be a terrain the PSL itself is unclear of. While the PSL May have expressed its disapproval of the sale and transfer of a club’s PSL status, it’s clearly constrained by business sense and the individual owner’s freedom to trade their businesses/clubs. But hang-on a bit doesn’t the sale and transfer constitute a transfer of the business as contemplated in s197 of the LRA. Case in point is the sale of Wits and consequent transfer to TTM. If it is, what is the effect of the transfer on the employees, is the Labour Relations Act, in particular s197 applicable? Are the employees protected? Can the new owner simply terminate employment contracts at will, without proper consultation with affected employees? Would this constitute unfair termination/dismissal? If terminations are inevitable, shouldn’t the be carried out under and comply with s189 (Retrenchment procedure)? What role does the PSL play and lastly, What remedies are available to affected employees?