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Extension of Security of Tenure Act (ESTA)All landowners, including farmers and owners of lifestyle properties, who live outside urban areas, are subject to the Extension of Security of Tenure Act (ESTA). This means that all employees, including farm workers and domestics, who reside on these properties are afforded the protection of ESTA. Therefore, where these employees are given accommodation on the property, they MAY NOT BE EVICTED from the property without a court order.

It is imperative, therefore, that employers have the following in place: 

1. Contracts that will protect them, such as accommodation contracts. These contracts set out clearly who may reside in the accommodation provided on the property, and the rules that the employees have to adhere to as part of their right to reside in the accommodation. This is linked to employment to ensure that any failure on the part of the employee to adhere to these rules will result in their employment being terminated.

2. Systems for accommodation to ensure that only employees reside on the property. The relationship between an employer and an employee should as far as possible be, that on termination of employment, the employee will have no reason to remain on the farm and will be incentivised to move to their own accommodation. We advise that savings agreements be put in place to provide financially for employees to find suitable alternative accommodation on termination of employment.

3. Controls/inspections to prevent a common mistake that many landowners make, which is failing to ensure that the accommodation rules are being adhered to. Common problems are among others:

a. People moving in permanently without authority;

b. Visitors without authority;

c. Employees increasing their livestock without authority; and

d. Building without authority.

To ensure proper control, inspections must be conducted on a regular basis, preferably by a third party such as a security company, who must be instructed to do so in a neutral and clinical fashion, so as not to cause problems where there are none.

Should you require any advice please don’t hesitate to contact us:

Tel: (033) 266 6170  OR  Fax: (033) 266 6175

Rob McCarthy: (083) 274 1232

E-mail: admin@mccarthylaw.co.za