An Evaluation of Business Rescue on Employment Protection in South Africa: A Case Study of Big Five Mine in Mpumalanga

South Africa’s escalating unemployment crisis has sparked concern among government officials and foreign investors, prompting the introduction of company rescue regulations in 2011. These regulations offer a crucial lifeline to financially distressed companies, presenting a viable alternative to liquidation. Unlike the finality of liquidation, business rescue initiatives aim to rescue a struggling enterprise and safeguard employment, providing a beacon of hope in dire economic circumstances. This qualitative case study critically evaluates the influence of the business rescue laws on employment security at the Big Five Mine in Mpumalanga, South Africa. The study design follows the “research onion” paradigm by Saunders et al. (2007) and is cross-sectional, rooted in stakeholder management philosophy. 31 Participants were selected via purposive sampling. 25 In-person semi-structured interviews and two focus group sessions were carried out. The purpose of this study was to critically evaluate the influence of business rescue laws on the employment protection of the Big Five mine in Mpumalanga, South Africa. The objectives were to assess the South African business rescue laws against international corporate laws, identify critical factors leading to Chapter 6 implementation, and evaluate the impact on employee protection. Thematic analysis revealed that the outcome of business rescue has far-reaching consequences, including employee marginalisation and a lack of access to information. Securing employment is crucial to the economy, as high levels of unemployment negatively impact the nation’s ability to ensure financial stability and attract international finance. The conclusions emphasised the need for inclusive approaches prioritising employment protection. The findings also suggest that effective stakeholder management is crucial for achieving successful business rescue outcomes, which has implications for practice and future research. Recommendations include enhanced communications for all stakeholders, industry-specific training for business rescue practitioners, and the development of comprehensive strategies to protect mineworkers’ employment security during financial turmoil. Managers should be aware of financial difficulties and take appropriate action to prevent loss of income and employment.