Planned business laws for South Africa will give government ‘sweeping powers’ over contracts: analysts
Analysts have raised concerns around the National Small Enterprise Amendment Bill and the potentially harmful effect it could have on businesses in South Africa.
The draft bill was published for public comment on 11 December and seeks to change the way government deals with the impact of legislation on small businesses.
It will also regulate relations between small and other enterprises, and to introduce a new dispute-resolution process including the concept of “unfairness” in contractual dealings.
This will be done through the introduction of a new Small Enterprise Ombudsman Service which will act as a support function to the minister.
In an analysis of the bill, the Free Market Foundation pointed to concerns around this Ombudsman Service and the powers it will have.
The bill states that the minister may, on the Ombudsman’s recommendation, prohibit certain practices in relation to small enterprises as being unfair, including the transfer of commercial risk to the weaker party.
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