Assignment task: Matshepo works as a flight attendant at Exclusive Airways (EA), a global airline with headquarters in South Africa. EA was facing a financial crisis prior to the COVID-19 pandemic. The financial crisis experienced by EA was worsened when the government imposed a national lockdown following the first confirmed case of COVID-19 in the country. EA is now in severe financial distress. Matshepo has not received her salary for more than 3 months. Simply put, the airline does not have the money and has failed to meet its debt obligations. The court has subsequently granted an order to this effect. Although other airlines have gradually resumed their flights, EA remains grounded. EA lacks the financial resources to resume operations.
1 Identify and discuss the process by which Matshepo's contract of employment may be terminated due to Exclusive Airways's financial situation. You must also explain whether Matshepo may have a claim for her outstanding remuneration.
2 Assume that the shareholders of Exclusive Airways unanimously resolve to approve a merger between BetterWay Airways (BWA), a successful and highly profitable global airline, to the effect that EA will now become a wholly owned entity of BWA. After the merger between BWA and EA is completed, BWA, unilaterally and without consultation, re-drafted all former EA employees' contracts of employment. The new contracts of employment no longer include various pecuniary (financial) benefits that were included in the old contracts. Before the merger, Matshepo was entitled to a monthly housing allowance, a thirteenth cheque, and an annual bonus. BWA has also introduced a staggered salary deduction which will see all former EA employee's salaries being reduced by 25% over 12 months. Matshepo angrily tenders her resignation and intends to sue BWA for unfair dismissal.
With reference to case law and legislation, identify and discuss Matshepo's unfair dismissal claim and comment on her prospects of success.