DRAFT!: Notice of possible retrenchment and invitation to consult

Notice of invitation to consult and possible retrenchment

Draft a notice to consult and possible retrenchment with this. Just complete the details of the details as required and press submit. You will receive an email with the download link for the final document, to download it and print.

Upload you Company Logo or header should you wish to as this option is optional.

Accepted file types: jpg, jpeg, png, gif.

Company Name:(Required)

Date of notice:(Required)

Employee Name:(Required)

First Last

Written Notice in terms of Section 189(3) of the Labour Relations Act 66 of 1995 (LRA): Invitation to Consult on Possible Retrenchment

Due to operational reasons, we need to consider the possibility of retrenching staff.

The reason for this has nothing to do with your or other employees’ performance or conduct at work, but rather is due to reasons set out below.

In terms of section 189(3) of the LRA, we invite you to consult with us over your possible retrenchment, in order that we may attempt to reach agreement on the issues surrounding the possible retrenchment.

Set out below is the relevant information required by section 189(3) of the LRA in order to place you in a position to conduct meaningful consultations.

Reason for the proposed retrenchment:(Required)

Due to Company financial circumstances, requiring the restructuring and / or reduction of staff to enable the company to be able to remain able to be in business;

Due to your position in the company having become redundant, either due to technology improvements / the position does not exist anymore in the company organogram or other factors rendering the position redundant;

Due to other factors that requires the company to restructure;

Other

The amount of employees who are likely to be affected by this contemplated retrenchment process:

Proposed method for selecting the employees to be retrenched:(Required)

LIFO (LAST IN FIRST OUT)

FIFO (FIRST IN FIRST OUT)

Your position as employee has become redundant and as such the selection criteria revolves specifically around your redundant position;

To limit the amount of expenditure in the company by restructuring positions and incorporation same into existing positions;

Other

Alternatives to retrenchment, to be considered.

We will consider any proposed alternatives put forward by yourself.

The company has considered various alternatives which has not been found to be viable, by looking at a reduction of salaries of staff and reducing overheads.

Please be ready to present reasonable alternatives on the table, should you believe there are alternatives to be considered.

If you are retrenched, you will receive notice in terms of your contract of employment or the Basic Conditions of Employment Act 75 of 1997 (BCEA), whichever is applicable, during which period you may be required to work.

Severance Pay:

The BCEA stipulates severance pay of at least one week’s remuneration per completed year of continuous service, and in the event of your retrenchment this will be paid to you. Special tax rates apply to severance benefits. To qualify for this, the South African Revenue Services (SARS) requires an employer to apply for a tax directive before the severance benefit is paid to an employee.

Assistance to be offered by the company:

If you are to be retrenched, we will allow you time off as reasonably required and arranged in order to attempt to find alternative employment and to attend job interviews. You will also be given a Certificate of Service and a letter of reference.

Possibility of future re-employment:

Should a vacancy arise in a position for which you are suitably qualified during the period of twelve months after retrenchment, you will be given an opportunity to apply for that position. It will be your duty to keep the employer informed of any change in your contact details.

Please give the above information your serious consideration, and prepare any representations regarding the proposed retrenchment that you would like to put forward. We will meet with you on ____________________ (date) at _____________________ (time) to consult on the above retrenchment proposal.

You are entitled to make representations on any of the issues, and we will consider any such representations and respond to you by no later than ____________________ (date).

Thereafter, further meetings may take place if required, with the aim of completing the consultation process by no later than ___________________ (date).

Yours faithfully, signed

____________________ Manager / Director