A dismissal based on operational requirements, commonly known as retrenchment, occurs when an employee is let go due to the employer’s economic, structural, or technological needs. This is a no-fault process, meaning it’s not related to the employee’s performance or conduct. The process is governed by Section 189 of the Labour Relations Act 66 of 1995.
By Lemé Stander
Dispute Resolution Official at Consolidated Employers Organisation (CEO SA)