We recently wrote a blog here outlining the Retrenchment Process in South Africa. In this follow up blog, we delve slightly more into STEP 3 of the process by answering some of our most frequently asked questions. Click on the STEPS below to read more.
According to Section 189 of the Labour Relations Act, the Retrenchment Process should only take place after addressing these four steps first:
STEP 1: CONSULTATION PROCESS
STEP 2: JOINT CONSENSUS SEEKING PROCESS
STEP 3: WRITTEN NOTICE
STEP 4: WHO SHOULD BE RETRENCHED
STEP 3: Section 189 (3) – WRITTEN NOTICE
Once the employer has identified the consulting parties, the employer must issue a written notice to the parties inviting them to make representations in writing on the following:
• the reasons for the proposed dismissals
• the alternatives that the employer considered before proposing the dismissals, and the reasons for rejecting each of those alternatives
• the number of employees likely to be affected and the job categories in which they are employed
• the proposed method for selecting which employees to dismiss
• the time when, or the period during which, the dismissals are likely to take effect
• the severance pay proposed
• any assistance that the employer proposes to offer to the employees likely to be dismissed
• the possibility of the future re-employment of the employees who are dismissed
• the number of employees employed by the employer; and
• the number of employees that the employer has dismissed for reasons based on its operation requirements in the preceding 12 months
The employer must allow the consulting parties to make representation on any other point related to the proposed retrenchment. Once the representations are made, the employer must respond accordingly. Should the employer not agree with the representations made, this must be in writing along with the necessary reasons.
Malcolm Lyons and Brivik Attorneys are leading experts in the field of labour law in South Africa. Should you require assistance as either an employee or employer feel free to contact us through one of the channels below:
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