Can an employer dismiss an employee when it has been placed under provisional liquidation?

Van Zyl v CCMA
Case number: C212/2011
Citation: [2012] ZALCCT 53 (14 March 2012)

The employer was placed under provisional liquidation on 8 October 2010. On 14 October 2010, the Master of the High Court appointed 3 joint liquidators. On 12 November 2010, the CEO , and sole shareholder, informed the employee that his services were terminated. The employer was placed under FINAL liquidation on 31 May 2012.

The Labour Court considered whether the employee was dismissed in the light of the provisions of the Insolvency Act and Labour Relations Act.