Inside Nimble

Outsourced – Let’s chat about S197 of the Labour Relations Act

October 5, 2023

When a portion of a business is transferred or outsourced ‘as a going concern’ to a new owner, the employees’ rights are always a primary concern. Outsourcing must be commercially sensible but it must also protect employment and our fragile job markets.

Essentially, when a company takes over or buys out an existing company or division as a going concern, the rights the employees and the obligations of the old employers are transferred to the new employer. “This includes but is not limited to length of service,” says Russell Milella of The Nimble Group – who have successfully implemented s197 transfers on many occasions when implementing its BPO solutions with its clients.

Legally speaking, the new employer is responsible for all the obligations related to the employees who are transferred from their existing employers.

S197 applies if the following 3 criteria are met:

  1. There is a transfer of an entity from one party to another.
  2. The transferred entity must be the whole or a part of a business.
  3. The business must be transferred as a going concern.

“The process is neither difficult nor daunting,” says Milella. “Businesses considering this type of transfer should not be unduly concerned about the future of their staff as it is very uncomplicated and caters fully for all affected employees.”

A few things to consider when contemplating the Transfers:

  • Agreements with unions
  • Number of employees to be transferred
  • Pension Fund, Provident Fund and Medical Aid
  • Any outstanding labour disputes and their monetary value
  • All leave entitlements and records up to date

Proud to be a substantial job creator
Nimble touches the lives of many people daily. With over 2 000 employees across the Nimble Group, substantial clients and extensive engagement with a large proportion of the population through our large processing centre activities – the very essence of our business makes us people orientated.

“When core activities are people dependent, the onus is firmly on the business and its management to be deeply people centric,” says CEO Rowan Gordon. Nimble’s responsibility to conduct itself as a good corporate citizen in the jurisdictions within which it operates, and to positively impact its stakeholders: customers, employees, management, shareholders and civil society – is a responsibility we are very earnest about.”

When it comes to BPO, Nimble will guide you every step of the way to ensure an easy transition while creating continuity of employment for your staff.

Nimble Group
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St Agnes Primary School

St Agnes is a public school situated in Woodstock, Cape Town.

Nimble Group actively supports St Agnes Primary School through the Partners for Possibility programme. We dedicate resources to a variety of initiatives aimed at creating an enhanced learning and recreational space, enriched student experience, and optimized day-to-day running of school operations.

Computer room upgrade Our dedicated team of IT technicians has upgraded the school’s IT hardware and software, creating a more user-friendly and modern environment for students and teachers using the computer room daily.

Playground painting and revitalization
Our enthusiastic volunteers devoted their time to painting vibrant murals and interactive games on the walls and paved areas of the playground.

Enriched student experience
Nimble strives to continuously improve the student experience by celebrating academic excellence, sponsoring prize-giving events, and more.

Day-to-day operational support
We also contribute to the school’s operational efficiency by offering administrative support and providing access to Nimble’s HR and Finance functions.

Peak Child

Nimble Group has taken the initiative to establish an Early Childhood Development Centre, which began operating in January 2019 in Woodstock, Cape Town. The centre operates under the guidance of Peak child, and while accessible to the public, primarily serves as a subsidized preschool for the children of Nimble staff.

Peak Child aims to equip children with the best possible foundation for life by providing affordable, high-quality preschools in close proximity to workplaces, catering to the needs of emerging middle-class parents. Since its inception, Peak Child has focused on collaborating with socially responsible employers to support their staff beyond conventional employee benefits.

Peak Child offers comprehensive programmes for children aged 3 months to 5 years. Through partnerships with prominent educational experts and local primary schools they ensure that children transitioning from Peak Child are socially, academically, and physically prepared for admission to any of Cape Town’s leading primary schools. Peak Child currently operates three schools, including Peak Child Nimble.

Nimble has made a significant investment in this project, with plans to replicate this model close to its Johannesburg offices.

Altius et Latius Trust

The Altius Et Latius Trust is a school education initiative aimed at providing bursaries to historically disadvantaged students, enabling their attendance at top schools in Cape Town.

The primary goal of the trust is to promote equitable access to high-quality public education, fostering lasting transformation. Their objective is to support fifty talented learners in gaining admission to high-performing schools.

Nimble Group continually makes a substantial impact on this crucial initiative by providing essential resources for additional student support, such as tutoring, funding for school events or excursions, sporting equipment and more.