Can a company retrench one person?
This section gives a single employee who was retrenched, a choice whether to refer a dispute to the CCMA for arbitration, or the Labour Court for adjudication. If more than one employee was retrenched, the CCMA has no jurisdiction – those employees must refer the dispute to the Labour Court.
What are the legal requirements for retrenchment?
The retrenchment procedure as laid down in the Labour Relations Act (LRA) must be followed properly and in good faith by the employer. The employer must also prove that he/she has shared with the targeted employees (or their representatives) all documentary and other information pertinent to the retrenchment.
What is a section 189 retrenchment process?
Section 189 of the Labour Relations Act (“LRA”) permits employers to dismiss employees for operational requirements. These are defined as requirements based on economic, technological, structural or similar needs of the employer.
Is retrenchment a fair reason for dismissal?
The CCMA agreed with the union stating that retrenchment is supposed to be based on no fault dismissals. The employees targeted for retrenchment had already been suspended for reasons related to misconduct. When the company took this ruling to the Labour Court the Court found that the CCMA was wrong.
Can you refuse retrenchment?
What is clear from the judgment is that an employer, in the context of a retrenchment exercise at least, may dismiss employees for refusing to accept a change to terms and conditions of employment, provided of course that the employer can demonstrate that there is a genuine operational need to change terms and …
What is the notice period for retrenchment?
If employed for less than six months – one week’s notice; if employed for more than six months but not more than one year – two weeks’ notice and if employed for more than a year – four weeks’ notice. Domestic and farm workers, who have been employed for more than six months, must receive four weeks’ notice.
What is unfair retrenchment?
It is a process wherein the employer reviews the business needs, profitability and other operational factors in order to increase profits or limit losses. However, if an employer doesn’t provide the proper reasons and doesn’t follow the proper procedures, the CCMA or Labour Court can consider the retrenchment unfair.
Can a employee ask for retrenchment?
The offer of voluntary retrenchment can be made by either the employer or the employee at any time during the consultation process and before notice of forced termination is given to the employee.
Can you be retrenched during lockdown?
During the national lockdown, section 189 of the Labour Relations Act 66 of 1995 will continue to govern the procedures that must be followed for a fair and lawful retrenchment. Retrenchment is a form of dismissal due to no fault of the employee.
How is a retrenchment package calculated?
Severance pay – a retrenched employee must at least be paid 1 week’s pay for each completed year of ongoing service. if the employee was employed for more than 6 months but less than 1 year, s/he must be paid 2 weeks’ notice pay; if the employee was employed for more than 1 year, s/he must be paid 4 weeks’ notice pay.
What is a fair retrenchment package?
Is retrenchment allowed during lockdown?
Is anyone allowed to get retrenched? Employers are not precluded from retrenching employees during the national lockdown, provided the employer has a valid operational reason to implement retrenchments and follows the procedures set out in section 189 of the LRA.
How many employees do you have to retrench?
Retrenchment. If the company has more than 50 employees, then at least 10 workers must be considered for retrenchment. If there are 200 to 300 workers, then the company should, at minimum, consider 20 employees, for 300 to 400, the minimum number is 30, for 400 to 500 at least 40, and for 500 or more employees, the company needs to consider…
Can a single employee be retrenched under the LRA?
In 2002 the LRA was amended and introduced section 191 (12). This section gives a single employee who was retrenched, a choice whether to refer a dispute to the CCMA for arbitration, or the Labour Court for adjudication. The section states : “If an employee is dismissed by reason of the employer’s operational requirements following
What is the correct procedure for a retrenchment?
The retrenchment must be unavoidable and fair procedure is essential. Before the employer can retrench any employees for operational reasons, the firm must, in writing, consult with the employees, people in a collective agreement or workplace forum, and the registered trade union or the representative of the employees.
Can a company retrench workers after a merger?
Employee cutbacks cannot automatically follow a merger. If an employer retrenches workers for operational reasons, but shortly after fills their positions with people from outside the company, then the retrenchments are not fair.