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Question
Posted by: Anon | 2010/03/11

Business closed down

I had a hair salon - my hair dresser was on merternity leave - in that time things went bad. The doors were closed since November. She was due to come back 1 March , but I received an offer for someone to take over my lease &  buy the furnitue. (15 Feb). I took a huge loss. With the money I received I just paid unpaid accounts, I told the hairdresser 19 February that the business is closed &  that there is nothing I can do about it.
She is demanding a R4000 salary for end of March. because the notice period wasnt big enough.
I dont have it - the business doesn''t have it.

What do we do in this instance? How do you pay someone if there is no money?

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Our expert says:
Expert ImageLabour lawyer

RE: BUSINESS CLOSED DOWN

Normally what one does is go through with a retrenchment exercise. In this case she could refer the matter to the Bargaining council if there is one otherwise the CCMA. I would suggest that you sit down with her, advise her what actually happened and try to settle a much smaller amount and get her to sign that it's paid in full and final settlement.

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Our users say:
Posted by: labour lawyer | 2010/03/29

RE: BUSINESS CLOSED DOWN

Normally what one does is go through with a retrenchment exercise. In this case she could refer the matter to the Bargaining council if there is one otherwise the CCMA. I would suggest that you sit down with her, advise her what actually happened and try to settle a much smaller amount and get her to sign that it's paid in full and final settlement.

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