South Africa: Employee Share Scheme Dividends

Earlier this year, National Treasury proposed a new regime to prevent “disguised bonuses” being paid to employees in the form of dividends on unvested or restricted employee share scheme shares. National Treasury proposed that all such dividends received on restricted shares would be treated as taxable income and the company paying such dividend would potentially receive a corresponding deduction.

This proposal gave rise to the submission of several comments, which were duly addressed in the […]

By | December 2nd, 2013 ||

"Landmark" Affirmative Action Decision In South Africa

The use of rigid racial quotas in hiring was struck down last week by The South African Supreme Court of Appeal.  The Court held that a rigid calculus as to racial demographics, even if intended for the laudable goal of employment equity, nonetheless amounted to a forbidden quota under the Employment Equity Act of 1998.  Section 15 (3) of the Act requires an employer to use “preferential treatment and numerical goals, but exclude quotas.

In the words of the […]

By | December 2nd, 2013 ||

New Zealand: Employer justified in dismissing for "out of work" behaviour

In April this year we reported on the Employment Relations Authority determination on the justified dismissal of Guy Hallwright, a senior investment analyst at Forsyth Barr. The case was recently brought before the Employment Court on appeal, and last week the Employment Court held that Mr Hallwright’s dismissal was justified.

In the case of Hallwright v Forsyth Barr Ltd [2013] NZEmpC 202 the Employment Court found that Mr Hallwright’s highly publicised “road rage” conviction, which took place […]

By | November 30th, 2013 ||