ConCourt rules on insolvency appeal

The Constitutional Court found that notifying staff of employer's insolvency is compulsory.

FILE: The Constitutional Court. Picture: EWN

JOHANNESBURG - The Constitutional Court has ruled that all employees including household staff must be informed if their bosses are declared insolvent.

In a unanimous judgement, North West Judge President Monica Leeuw says this this promotes the spirit of the Bill of Rights.

The declaration is contained in a judgment relating to a sequestration order granted against a couple who owed Investec bank R240 million.

The couple and their domestic employees appealed the Western Cape High Court, which granted a final sequestration order.

They contended it was unconstitutional because only the couple's business staff had been notified of the action, and not their household workers.

The Constitutional Court found that notifying employees is compulsory.

However in this case, the petition had been made available in a manner that was reasonably likely to become accessible to the domestic employees.