Delmas — Daybreak Foods employees say a once-off salary advance facility introduced during the company’s ongoing business rescue process has provided limited relief but has failed to ease deep financial hardship faced by many workers.
The Business Rescue Practitioner (BRP) introduced the salary advance facility in December to assist employees during the financially demanding December-January period.
Under the approved affordability framework, working employees qualify for advances based on their employment bands: A-band employees may access up to R1,500, B-band employees up to R3,000 and C+ band and above up to R4,000.
Repayment will be made over two months through equal payroll deductions. For employees not currently working, any assistance granted will be deducted from their post-commencement claims against the company.
The deadline for applications was 14 January 2026, with approved advances paid by no later than 16 January 2026.
While the initiative has been welcomed as a sign of acknowledgment, workers say it falls short of addressing the depth of hardship they are experiencing.
Precious Nkosi, long-serving worker at the company, said her first reaction to the announcement was relief, but that feeling was short-lived. “The advance helps with urgent needs, but it is not enough to cover accumulated obligations such as rent, debt and school fees. Repaying it over just two months will reduce already strained take-home pay,” she said.
For workers not currently rendering services, the situation is even more worrying, noting that post-commencement claims are often relied upon for survival once paid. “If the advance is deducted from those claims, many workers may be left with almost nothing when payments eventually come through,” Nkosi said.
Mahlatshi Malatsi, a worker, told the Highveld Chronicle that surviving on R1,500 for an entire month was “very painful,” especially with school-related expenses looming. “We had to buy stationery, lunch boxes, book covers and school uniforms. My child was in matric and could not attend matric dance, receiving no presents. We don’t wish this on anyone.” Despite these concerns, Daybreak Foods maintains that the initiative reflects its commitment to supporting employees under difficult circumstances.
“As the workers’ committee, we believed it would have been better if the same maximum amount was given to all employees, although the Business Rescue Practitioner explained why this was not possible,” he said.
“In my view, the salary advance does not adequately address the financial pressures workers are facing, as it is not a full salary. While we appreciate the intention behind it, the adopted Business Rescue Plan makes no provision for salary advances, and only the hatchery division is currently operating,” the workers committee said.
Workers have questioned why they are being offered a loan while the company still owes them outstanding payments, whether any interest will be applied, and if the salary advance is a once-off measure. They also expressed dissatisfaction over the lack of consultation with employees or their representatives prior to the implementation of the decision. He added that workers are still awaiting feedback from the Temporary Employee/Employer Relief Scheme (TERS), which they hope will enable them to receive at least 75% of their salaries and provide certainty around the retrenchment process.
In response, the Business Rescue Practitioner (BRP) dismissed some of these concerns, explaining that the advance does not attract any interest and is strictly a once-off intervention aimed at easing short-term financial pressure during the festive period. The BRP further stated that the measure was implemented in line with the approved business rescue plan and existing salary advance agreements, adding that consultations will continue as the process unfolds. On TERS, the BRP confirmed that an application has been submitted and that workers will be formally updated once feedback is received.
Daybreak Foods’ Senior Business Rescue Practitioner, Tebogo Moato, said the salary advance was introduced to ease financial pressure on employees during a difficult period.
He said employees can apply for the advance through the Human Resources Department, with applications assessed and outcomes communicated on an individual basis. Moato stressed that the initiative is governed by strict internal rules and implemented consistently across the company.
“Decisions regarding salary advances remain at the sole discretion of the company,” he said, adding that any outstanding amounts would be recovered from an employee’s final salary or stipend in cases of resignation or termination.
Moato further noted that the Business Rescue Team had engaged with the workers’ committee and trade unions, who supported the initiative. “Despite the financial distress currently faced by the company, this initiative reflects our ongoing commitment to assist employees where reasonably possible,” he said, adding that any further relief measures would be communicated through official circulars.
