Daybreak Foods give workers a loan to be deducted later

A once-off salary advance meant to help Daybreak Foods employees through the festive season has offered some relief, but many workers say it barely dents the financial strain they are under during the company’s ongoing business rescue.

The Business Rescue Practitioner (BRP) rolled out the advance in December, aimed at helping staff get through the financially tight December-January stretch. Under the approved framework, how much an employee could draw down depended on their pay band: up to R1,500 for A-band staff, up to R3,000 for B-band staff, and up to R4,000 for employees in C-band and above.

Employees still working are repaying the advance over two months through payroll deductions. For those not currently rendering services, whatever they received will instead come off their post-commencement claims against the company once those are eventually settled. Applications closed on 14 January 2026, with approved advances paid out by 16 January 2026.

Many workers welcomed the gesture as an acknowledgment of their situation, but say it doesn’t come close to covering what they actually owe. One long-serving employee described her relief at the announcement fading quickly once she considered the numbers: the advance, she said, barely touches accumulated costs like rent, debt and school fees, and having to pay it back within two months only tightens an already stretched pay cheque. She was especially concerned for colleagues who aren’t currently working, since deducting the advance from their post-commencement claims could leave them with very little once those claims are finally paid out.

Another employee described trying to stretch R1,500 across an entire month as extremely difficult, particularly with school costs piling up at the same time, from stationery and lunchboxes to uniforms, and said the timing meant at least one family member missed out on typical matric-year milestones altogether.

The workers’ committee felt a flat maximum payout for everyone would have been fairer, even though the BRP had explained why that wasn’t workable. In the committee’s view, the advance still falls short because it isn’t a full salary, and it noted that the adopted business rescue plan doesn’t actually make provision for salary advances in the first place, with only the hatchery division currently operational.

Workers have also raised broader questions: why they’re being asked to take on a loan while the company still owes them money, whether any interest applies, and whether this is truly a one-off measure. They’ve also criticised the lack of consultation with staff or their representatives before the facility was rolled out, and say they’re still waiting on feedback about their Temporary Employee/Employer Relief Scheme (TERS) application, which they hope will secure at least 75% of their salaries and bring some clarity on the retrenchment process.

The BRP has pushed back on some of these concerns, confirming that the advance carries no interest and is intended purely as a short-term, once-off measure to ease pressure over the festive period, implemented in line with the approved rescue plan and existing salary advance agreements. The BRP added that consultation would continue as the process moves forward, and confirmed a TERS application has already been submitted, with employees to be updated formally once there is a response.

Senior Business Rescue Practitioner Tebogo Maoto said the advance was designed to ease financial pressure during a difficult stretch. Employees apply through the HR department, with each case assessed and communicated individually, and Maoto emphasised that the process follows strict internal rules applied consistently across the company. Any amount still outstanding would be recovered from an employee’s final salary or stipend if they resign or are terminated, and Maoto noted that decisions on advances ultimately rest with the company.

According to Maoto, the Business Rescue Team consulted the workers’ committee and trade unions before rolling out the initiative, and both were supportive. He said the move reflects the company’s ongoing effort to support staff despite its financial difficulties, and that any further relief measures would be announced through official circulars.