Termination Of Employment Contract Case Study

Case Study 1

In XYZ Publishing an employee was acted towards in an unethical manner. Although the termination of employment contract was legal. There is a certain procedure that is ethical for a company to follow. Which is in 5 steps:

1. Collect all the information about the problem.

2. Management must then decide if this complaint is fact or opinion.

3. Ask the employee if he/she has any possible solutions to fix the problem.

4. The employee and the employer must try to agree on a solution.

5. Check-up after 2 or 3 days, to identify if the solution has worked.

Although Sam did find out why John has a problem and if the problem is fact or opinion, Sam still did not try and come to a solution to the problem with John, this is what makes this

There are two acts that give guidelines to this offence and they are:

1. LRA (Labour Relations Act)

2. OHASA (Occupational Health And Safety Act)

1. The Labour Relations Act (act no. 66 of 1995) is put in place to encourage employee participation is decision making throughout their sector. This is connected to case 1 because the company was not allowing employee participation, by allowing the problem to get out of hand.

2. The Occupational Health And Safety Act (act no. 85 of 1993)is put in place to provide health and safety to those in the workplace. This Act connects with case 1 because the employee felt that his workplace made him sick and unhealthy.

A control measure that should instantly be put in place is an office health check sheet. This allows the staff members to make those in charge aware that they are unhappy due to cause in their workplace, this sheet is put in place to ensure that as soon as an employee is experiencing a problem, this problem is noted by management and will soon be resolved, before the problem gets

The Receipts from Debtors is decreasing every month, which means that this company has a lower inflow of cash each month, whereas our payment to creditors is increasing meaning that the company’s outflow of cash is increasing. This information presented is worrying considering less money is entering the company and they are paying out more. In June this company had a spike in their capital contribution, it seems that this deposit was made to try and correct the profit margins of Malinga Traders. As soon as this deposit was made, the loan was paid off, paying this loan off results in the company having less expenses each month and decreases the outflow of cash each month. In Malinga traders expenses, that have included fixed cash expenses, these expenses are expenses that remain largely unchanged for a long period of time, excluding imputed expenses. Fixed expenses are such as salaries and wages, Rent Expense and water and electricity etc. Malinga Traders do not have enough income to pay for their expenses and in this case, companies start to use their overdraft facility, this overdraft facility allows the company to spend money that is not theirs, this is similar to taking a loan out, but this facility has a high interest rate that the company will have to pay. In order to draw up a cash budget statement, you will have to complete an expected debtor’s collection schedule for