Streaming issues? Report here
Azania Moaka 702 Gradient Azania Moaka 702 Gradient
The Azania Mosaka Show
13:00 - 15:00
volume_up
volume_mute

Up Next: Afternoon Drive with Joanne Joseph
See full line-up
The Azania Mosaka Show
13:00 - 15:00

Home
arrow_forward
Business

Retrenchment 101: What the law says about companies making job cuts

28 February 2018 12:30 PM
Tags:
Labour law
Labour Relations Act
retrenchments
Sherisa Rajah
If you receive a notice of contemplating retrenchment from your employer, this does not mean that a final decision has been made.

If you receive a notice of contemplating retrenchment from your employer, this does not mean that a final decision has been made.

Labour attorney Sherisa Rajah explains that companies are required by law to follow certain processes when cutting jobs.

Section 189(3) of the Labour Relations Act (LRA) requires an employer to give an employee a notice and conduct consultations when they contemplate dismissal.

Rajah explains that a retrenchment notice is not a concluded decision and can be interdicted in the labour court or challenged through industrial action, if it is unlawful.

Once a notice is given, all parties must engage in consultation, otherwise known as a joint consensus seeking process, to determine the options available.

Rajah explains that retrenchments can be on the basis of technological, economic or structural requirements for the company. She says that there is also the question of operational incapacity.

Once the terms of retrenchment are finalised, employees will be paid one week's income for every completed year of service and can be paid out for all their accrued annual leave.

When an employee is first notified [about retrenchment], it's notification of a contemplation. The process is by no means finalised at that stage.

Sherisa Rajah, Labour attorney and partner at Fasken law firm

A retrenchment is underpinned by an operational requirment.

Sherisa Rajah, Labour attorney and partner at Fasken law firm

Until you get to no other alternatives, it's difficult for the employer to justify a procedurally and substantively fair dismissal.

Sherisa Rajah, Labour attorney and partner at Fasken law firm

Rajah described the details of the retrenchment process for various employment contracts and offered advice to listeners seeking recourse.

Take a listen as Sherisa Rajah discusses the legalities around retrenchments:


This article first appeared on CapeTalk : Retrenchment 101: What the law says about companies making job cuts


28 February 2018 12:30 PM
Tags:
Labour law
Labour Relations Act
retrenchments
Sherisa Rajah

More from Business

101167622-1759886180818799-401925019539603456-njpg

This Pretoria restaurant is giving new flair to the roadhouse concept to survive

4 June 2020 8:16 PM

Anelda Martin is the owner of the Goddess Cafe in Pretoria and she is looking to revive the roadhouse.

Share this:
Read More arrow_forward

missionjpg

Oceana Group defers interim dividend payout due to Covid-19

4 June 2020 7:26 PM

Oceana fishing has deferred their interim dividend payout due to Covid19, but says all is well.

Share this:
Read More arrow_forward

180417-psl-relegationedjpg

The reasons why Absa is ending PSL sponsorship

4 June 2020 6:46 PM

Absa is ending its R140m a season sponsorship of SA’s Premier Soccer League (PSL), after a 13-year relationship.

Share this:
Read More arrow_forward

US President Donald Trump in New York 2017 123rfpolitics 123rf

Trump is battered by crisis after crisis ahead of elections - is this the end?

4 June 2020 6:37 PM

Covid-19 and race riots - is President Donald Trump's re-election campaign collapsing?

Share this:
Read More arrow_forward

8a258830-d0ff-49c1-8a4e-f9475828040c.jpg

'Government should look at aiding the entire aviation industry'

4 June 2020 5:11 PM

Airlines Association of Southern Africa chief executive Chris Zweigenthal says the airline revenue went to zero overnight.

Share this:
Read More arrow_forward

151007BrianHabana-gif.gif

Shapeshifter: Springbok-turned-businessman, Bryan Habana

3 June 2020 8:18 PM

Former Springbok Bryan Habana about where he is at this point of his career.

Share this:
Read More arrow_forward

download-20jpg

Skynamo is positioning its sales solution to help reps work safely in the field

3 June 2020 7:18 PM

Skynamo is a Field Sales management and productivity app used by manufacturers, distributors and wholesalers.

Share this:
Read More arrow_forward

123rf A pile of two hundred rand notes, South African currency money

How long before everyone has access to financial services

3 June 2020 7:15 PM

Only 54% of South Africans had a bank account in 2004, the goal is to make that 90% by 2030, where are we now.

Share this:
Read More arrow_forward

Lockdown levels South Africa Covid-19 coronavirus 123rf

Government has two weeks to overhaul lockdown regulations

3 June 2020 6:42 PM

Government has two weeks to overhaul lockdown regulations they say were put in place to curb the spread of the coronavirus, or win an appeal.

Share this:
Read More arrow_forward

vertical-logopng

University of Pretoria launches free National Support Portal for SMMEs

2 June 2020 7:45 PM

The University of Pretoria's Centre for Entrepreneurship has launched a free National Support Portal for SMMEs.

Share this:
Read More arrow_forward