retrenchment

To Bump or Not to Bump

Due to our prevalent economic challenges, the topic of retrenchment has become a regular discussion topic in South Africa. It is more significant for employers to thoroughly understand the retrenchment process and the options available for consideration when challenged with a decision to retrench as their last resort. During retrenchment consultations, the generally accepted fair [...]

2024-06-27T13:51:03+02:00June 27th, 2024|General|Comments Off on To Bump or Not to Bump

The Impact & Challenges that a Company Faces when an Employee Leaves

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 [...]

2022-10-31T12:09:44+02:00October 31st, 2022|General|Comments Off on The Impact & Challenges that a Company Faces when an Employee Leaves

What is Section 189A (Request Form 7.20)

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 [...]

2022-07-11T11:33:25+02:00July 11th, 2022|General|Comments Off on What is Section 189A (Request Form 7.20)

“That’s not what we agreed on,” Retrenchments and alternative employment

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 [...]

2022-06-29T12:23:33+02:00June 29th, 2022|General|Comments Off on “That’s not what we agreed on,” Retrenchments and alternative employment

Can I retrench an employee on a fixed-term contract?

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 [...]

2022-06-15T12:31:49+02:00June 15th, 2022|Contracts|Comments Off on Can I retrench an employee on a fixed-term contract?

Remedies at the disposal of the Labour Court in Section189A matters

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) [...]

2022-01-04T12:24:14+02:00January 4th, 2022|Labour Relations Act|Comments Off on Remedies at the disposal of the Labour Court in Section189A matters

In a world of so much uncertainty, where does an employer stand?

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 [...]

2021-09-09T09:59:27+02:00September 9th, 2021|General|Comments Off on In a world of so much uncertainty, where does an employer stand?

Voluntary Retrenchments

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 [...]

2021-07-15T21:50:30+02:00July 15th, 2021|General|Comments Off on Voluntary Retrenchments

Should Employers embark on incapacity enquiries for poor work performance amidst the Covid-19 pandemic?

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 [...]

2020-09-28T15:11:58+02:00September 28th, 2020|Contracts, General|Comments Off on Should Employers embark on incapacity enquiries for poor work performance amidst the Covid-19 pandemic?

Demotion as an alternative measure to retrenchment following the effects of COVID-19

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 [...]

2020-07-06T17:50:10+02:00July 6th, 2020|Latest News|Comments Off on Demotion as an alternative measure to retrenchment following the effects of COVID-19
Go to Top