National Credit Act
Although the National Credit Act, which came into force on the 1st June 2007, does not impact hospitality establishments directly it is possible, under certain circumstances, that an establishment may be required to register with the authorities.
This could come about where an establishment provides loan facilities to their employees.
All employers who provide credit or loan agreements to 100 or more employees and whose total loans to employees, at any given time equal or exceed R500,000, will be required to register under the Act.
However loans would only be classified as credit agreements if there was a deferral of payment. i.e. the loan is paid back over an agreed period of time, and if a fee, charge or interest is levied on deferred amount.
