We recently wrote a blog here outlining the Retrenchment Process in South Africa. In this follow up blog, we delve slightly more into STEP 4 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
There are no set criteria for retrenchment, however the employer is encouraged to use the following as a guideline:
• One that is agreed upon during consultation; or
• If there are no criteria, the employer may decide on a criteria that is fair and objective
To summarise, the employer should keep in mind the following:
Have a consultation process
Provide reasons; and
Establish a criteria for retrenchment
South African unemployment has reached an all-time high, recorded at 32.9%. Therefore, employers are encouraged to seek alternatives before electing to retrench their employees. Contributing to South Africa’s unemployment should always be cautioned against.
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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