RETRENCHMENT DURING LOCKDOWN – “a drastic measure taken by the employer when everything else fail”

The pronouncement of COVID-19 as a pandemic by the World Health Organisation, followed by the announcement of a national lockdown by President Cyril Ramaphosa, has brought about a new dawn in our economy, characterized by fear and insecurity on both the employer and the employee respectively.  The government has put into place specific measures and benefits for both the employer and the employee to keep businesses afloat and preserve jobs. Despite all these efforts, not all businesses will survive the advent of the new dawn with some being forced to close down or not continue to operate in current size and form.

In that instance, 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.
  • It is a process whereby the employer reviews its business needs in order to increase profits or limit losses, which leads to reducing its employees.
  • The employer must give fair reasons for making the decision to retrench and follow a fair procedure when making such a decision or the retrenchment may be considered unfair.

Burden Swart & Botha Attorneys have more than 25 years’ experience in Labour law matters. We are known for the professional manner in which we assist employers with retrenchments, ensuring the process is fair and legally sound, without any nasty surprises. We Have your business’ best interest at hart.

Be pro-active with your company’s retrenchment process and make it as painless as possible.

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