Question:
Hi, Are there any legal action an employer can take to force employees to move to a specific provident fund? What rights do the employers have? Thanks, Johanna
Answer:
Johanna,
As an employee, you are bound by your employment contract. This would include joining your employer's existing provident fund (as set up by the employer). Other matters are also governed by law, so if your employer has sold his business, this may require you to move to another provident fund (if this is provided by the sale agreement in terms of a s197 transfer). But without knowing the full details of your circumstances, we cannot give you a specific answer on whether what your employer is doing is appropriate/lawful or not.
The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.
