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The Star reports that in a precedent-setting judgment, a Johannesburg-based restaurant company that claimed it had no obligation to pay employees’ salaries due to the Covid-19 lockdown, has been placed under business rescue.
The Mezepoli group was taken to the South Gauteng High Court last week after an urgent application was brought on behalf of its workers. The defence of two of Mezepoli’s directors, Francois Froneman and Elpida Haitas, was that as a result of the national lockdown, force majeure excused the company from its obligations to employees and other creditors. The application brought on behalf of the 158 workers pushed for business rescue because that would guarantee payment of their salaries for at least 14 months. Froneman and Elpida last paid salaries to the 158 workers on 28 March. Judge Sharise Weiner found against the Mezepoli companies. “Force majeure cannot be relied upon by the respondent companies as a defence to their obligations owed to their employees,” she indicated. Weiner also said it was “extremely concerning” that Mezepoli had paid over R7.4 million as dividend to a trust that controlled it.
- Read the original of the report in the above regard by Bongani Nkosi on page 4 of The Star of 9 June 2020
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