The Notice of Transfer Letter is a crucial document in South African business transfers, mergers, and acquisitions. It is specifically required to comply with Section 197 of the Labour Relations Act, which protects employees' rights during the transfer of a business as a going concern. This document should be issued when there is a change in employer ownership or control that affects employment relationships. The letter must clearly communicate the transfer details, maintain transparency about the process, and assure employees about the continuation of their employment terms. A properly drafted Notice of Transfer Letter helps manage employee concerns, ensures legal compliance, and facilitates a smooth transition process. It typically includes information about both the current and new employer, the effective date of transfer, confirmation of employment terms, and practical arrangements for the transition.
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1. Letterhead and Date: Company letterhead, date, and reference number if applicable
2. Recipient Details: Employee's name, employee number, and current position
3. Subject Line: Clear indication that this is a Notice of Transfer of Business
4. Opening Statement: Formal notification of the business transfer and its effective date
5. Transfer Details: Information about the new employer and nature of the transfer
6. Impact on Employment: Confirmation that employment terms and conditions will transfer unchanged as per Section 197
7. Practical Arrangements: Details about workplace location, reporting structures, and any immediate practical changes
8. Contact Information: Details of who to contact for queries or concerns
9. Closing and Signatures: Formal closing, signature of authorized representative
1. Integration Plans: Additional information about integration processes and timelines, used when there are specific integration activities planned
2. Benefits Overview: Detailed explanation of any benefits changes or improvements, included when there are changes to benefit structures
3. FAQ Section: Common questions and answers about the transfer, useful for complex transfers or when significant changes are involved
4. Team Introduction: Introduction to new management team or key contacts, included when there are significant changes in reporting structures
5. Acknowledgment Slip: Receipt confirmation slip, used when formal acknowledgment of the notice is required
1. Schedule A: Current Employment Terms: Summary of current employment terms and conditions that will transfer
2. Schedule B: New Company Information: Detailed information about the new employer, including registration details and business address
3. Schedule C: Timeline of Transfer: Detailed timeline of transfer-related events and important dates
4. Appendix 1: Frequently Asked Questions: Comprehensive list of FAQs and their answers regarding the transfer process
5. Appendix 2: Contact Directory: List of key contacts in both current and new organization for various queries
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