QUESTION 1 (50 mark Mr Botha operates a hardware business in Randburg (Johannesburg). The premises in which he conducts his business are leased from Duplex Properties. He purchases his stock on credit from various suppliers who give him an extended 30 days credit facility. The area in which he operates his business has been experiencing constant power failures, due to load shedding for a period of three months. Due to continuous blackouts caused by Eskom's load shedding, Mr Botha's business started to experience financial difficulties, as most of his clients decided to buy from other reliable businesses. Mr Botha started to default on his rental payments and failed to meet his suppliers' contractual obligations, as the rental amount in arrears for three months had increased to R90 000, and the amount owed to suppliers escalated to R300 000. In addition to the afore-mentioned situation, his employees have been on strike for three weeks for non-payment of wages amounting to R60 000. In the midst of all these problems, his landlord (Mr Duplex) and other creditors have started to send him letters of demand for the amounts owed to them. At the end of January 2022, Mr Botha opted to shut down his business and went for a holiday in Comoros Islands. He left without making any payment arrangements with his creditors nor paying his employees. Requirements: 1.4 Discuss the effects of sequestration on employees' contracts of service. Is there any recourse for Mr Botha's employees