One of the difficulties an employer may face in business is staff turnover, which can lead to a loss of operational capacity and skills needed to perform a business's functions, ensuring productivity. Continuity is essential for the effective operation of a business. It may cost an employer time, effort, and money to find a new [...]
It is public knowledge that the COVID-19 pandemic has affected numerous businesses across South Africa, which has led to most companies embarking on retrenchment processes. Even though some businesses have tried to recuperate financially from the pandemic, many have struggled and continue with the retrenchment processes. Section 189(A) makes provision for trade unions and the [...]
It is well known in South African Law that dismissals regarding operational requirements or retrenchments should be carried out as a last resort. Employers should always try to seek alternative measures in order to avoid retrenchments. In the case of Reeflords Property Development PTY LTD v Lauren Almeida (2022) 6 BLLR 530(LAC), the Labour Appeal [...]
Employers have the right to retrench employees. This is regulated by Section 189 and 189A of the Labour Relations Act 66 of 1995. Due to the current economic climate, retrenchments have become more frequent for obvious reasons. Employers should ensure that their fixed-term contracts are managed correctly to avoid disputes, should they need to make [...]
Section 189, read with Section 189A of the Labour Relations Act 66 of 1995 (hereafter referred to as the Act), prescribes the procedure to be followed where an employer contemplates terminating the services of employees by reason of operational requirements. Section 189A deals with large scale retrenchments as defined by the said section. Section 189A(3) [...]
On 25 August 2021, Kwa-Zulu Natal firefighters battled to contain a fire in a chemical factory in Durban, whereby massive damage had been reported. This factory, which manufactures resin, remains closed, and police continue to investigate the cause of the fire. From March 2020, till current, many South African employers have experienced and continue to [...]
A voluntary retrenchment is, in essence, an alternative to a forced retrenchment, whereby an employee volunteers and agrees to be retrenched and subsequently waives his or her rights arising from the termination of his or her services. Upon starting with the retrenchment process as prescribed by Section 189 of the Labour Relations Act 66 of [...]
The Covid-19 pandemic is a “force majeure”. Dictionary.com describes “force majeure” as unforeseeable circumstances that prevent someone from fulfilling a contract. Generally, employment contracts do not contain clauses that regulate circumstances should such a rare occurrence happen. In the event that such an occurrence presents itself, employer and employee usually revert to the common [...]
Employers may find that they cannot carry the financial burden of retaining all of their staff compliment post lockdown as a result of the financial position they find themselves in. Many employers might be contemplating retrenchments and dreading the idea of losing any of their employees as a result of financial restraints. In terms [...]
Many employers find themselves having to consider cost-saving measures to ensure business continuity due to the COVID 19 pandemic’s effect on South Africa’s economy. One of these measures is to retrench employees in terms of section 189 of the Labour Relations Act 66 of 1995. Section 189 regulates the procedure employers must follow when [...]