News n Views December 2023

N E W S & V I E W S • D E C E M B E R 2 0 2 3 9 that the Department, in an emergency situation, has the authority to direct a person to carry out a listed or specified activity, to prevent or contain the emergency situation or to prevent, contain or mitigate the effects of the emergency situation. Section 30 requires several reports to be filed with various State role-players including all persons whose health may be affected by the incident, and within specified timeframes. In this section “incident” means an unexpected sudden occurrence, including a major emission, fire or explosion leading to danger to the public or potentially serious pollution of or detriment to the environment, whether immediate or delayed. Some of the reporting obligations need to be complete within 14 days of the incident, so do not delay in completing and submitting such reports. S30 further empowers the relevant authorities to issue a directive in terms of which the responsible person must undertake specific measures within designated timeframes to comply with NEMA and in managing and/or addressing the emergency incident. A person who contravenes or fails to comply with NEMA is guilty of an offence and liable on conviction to a fine not exceeding R1 million or to imprisonment for a period not exceeding one year, or both. Employees and employment issues Disaster has struck and now what to do with your employees. This is one of the toughest decisions to make and which is impacted by several considerations, such as, affordability, loyalty, appreciation, and practical need. The options available for dealing with the workforce will depend largely on the extent of the disaster and the impact on your business. The first step is to carry out as assessment of the nature and impact of the disaster on your business, and the expected duration. This will dictate the approach taken with the workforce. It may be that you require employees in the short-term for the cleanup, for example, but longer term while the rebuild is happening, your labour requirements may be less. In the event that the disaster renders your business inoperable, full-scale retrenchments may be in order. Your approach may also need to adapt with the change in circumstances as you move through the phases of the disaster management process. Some options to consider include: • Placing employees on short time • Varying employees’ terms and conditions and having employees carry out different roles and responsibilities. • Shift rotation and different working time arrangements. • Eliminating overtime and work on weekends. • Lay-off. • Re t r e n c hme n t s ( i n c l ud i ng v o l u n t a r y retrenchments) • Early retirement Consultation with your employees and their Trade Union (if applicable) will be critical to the effective implementation of such schemes and management tools. This is a time for all parties to work together and for the good of business sustainability. Commercial considerations Assess your ability to meet your contractual obligations and demands from your customers, clients, suppliers, contractors etc. You will need to review your contracts and current arrangements for any pitfalls before making any decisions. A declaration of force majeure may assist you in the interim and until you are able to determine the full extent of the disaster, the future of your business and your ability to satisfy the contractual obligations. It may not be a long-term solution and needs to be approached carefully. We would recommend seeking legal advice before implementing force majeure as the consequences may be serious for your business. Document any discussions with customers, contractors, suppliers and record any special concessions granted and timeframes. Managing expectations will be critical and you want to be as clear as possible with stakeholders. Insurance Contact your insurers or brokers as soon as possible. This is to ensure that your claim gets the attention it needs to be efficiently and speedily processed. You may also need to make decisions that may have an impact on your claim, and you do not want to do anything that will negatively affect the process. Be clear on what your insurance covers – do you have business interruption cover in place, are you covered for stock loss and is this cover sufficient, the same in respect of plant and equipment and assets.

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