ETI – LEGISLATION BREAKDOWN IN SIMPLE TERMS

2. Disqualifying employer in terms of ETI:
Where the employer is deemed to have displaced an employee if the resolution of a dispute (whether by agreement, order of court or otherwise) reveals that the dismissal of that the dismissal of that employee constitute an automatically unfair dismissal in terms of section 187(1)(f) of the Labour Relations Act, AND the employer replaces that dismissed employee with an employee in respect of which the employer is eligible to receive the ETI, SARS may impose a penalty in an amount of R30 000 in respect of the employee that is displaced and may disqualified the employer from receiving the ETI by a Gazette notice, after taking certain factors into consideration, such as: number of employees displaced and effect that the disqualification may have on the employees of the employer.