📢 Important Announcement: Employee Retrenchment Process in South Africa 🇿🇦
Dear Employers
We understand that discussing retrenchment can be a challenging and sensitive topic.
However, employers must ensure that the process is conducted in a fair and transparent manner, adhering to the guidelines outlined in Section 189 of the Labour Relations Act.
Here are the basic steps that are be followed during a retrenchment process:
Step 1: Initiation of Consultation
The employer will initiate the retrenchment process by providing written notice to the affected employees, trade unions (if applicable), and relevant employee representatives.
This notice will outline the reasons for the retrenchment, the number of employees affected, and the proposed retrenchment date.
Step 2: Consultation and Disclosure
Consultation is a crucial step to explore alternatives and mitigate the impact of retrenchment.
During this phase, the employer will engage in meaningful discussions with employee representatives and trade unions (if applicable).
They will share all relevant information regarding the intended retrenchment, including reasons, alternatives considered, and the financial implications.
Step 3: Selection Criteria
To ensure fairness, clear selection criteria should be established and communicated to the employees and their representatives. These criteria may include factors such as seniority, skills, qualifications, and performance.
The selection process should be objective, non-discriminatory, and based on reasonable grounds.
Step 4: Voluntary Retrenchment and Redeployment
Employers may offer voluntary retrenchment packages to employees who are willing to accept them.
Additionally, the employer should explore alternative options such as redeployment, job sharing, retraining, or reducing working hours.
These alternatives aim to minimize the number of retrenchments and their impact on employees.
Step 5: Retrenchment Notice and Severance Packages
After consultation and consideration of alternatives, if retrenchment remains the only viable option, the affected employees will receive written notice of their retrenchment.
The notice period should be in accordance with the employment contract or relevant legislation.
Severance packages, including any applicable leave pay, should be clearly explained to employees.
Step 6: Appeals and Grievances
Employees have the right to appeal the decision to retrench.
The appeals process should be clearly communicated, and employees should be given the opportunity to present their case.
Any grievances related to the retrenchment process should also be addressed promptly and fairly.
Step 7: Assistance and Support
During this difficult time, employers should provide appropriate support to affected employees.
This may include offering counseling services, job search assistance, or providing access to training and skills development programs to enhance employability.
We understand that retrenchment can cause uncertainty and stress.
This article’s aim is to ensure that employers are educated to enact a fair and respectful process for all involved..
Sincerely,
LABOURED