| (1) | Where an employer is deemed to have displaced an employee as contemplated in subsection (2), that employer— |
| (a) | must pay a penalty to the South African Revenue Service in an amount of R30 000 in respect of the employee that is displaced; and |
| (b) | may be disqualified from receiving the employment tax incentive by the Minister of Finance by notice in the Gazette after taking into account- |
| (i) | the number of employees that have been displaced by the employer; and |
| (ii) | the effect that the disqualification may directly or indirectly have on the employees of the employer. |
| (2) | For the purposes of subsection (1), an employer is deemed to have displaced an employee if— |
| (a) | the resolution of a dispute, whether by agreement, order of court or otherwise, reveals that the dismissal of that employee constitutes an automatically unfair dismissal in terms of section 187(1)(f) of the Labour Relations Act; and |
[Section 5(2)(a) amended by section 114(a) of Act No. 43 of 2014]
| (b) | the employer replaces that dismissed employee with an employee in respect of which the employer is eligible to receive the employment tax incentive. |
