CORRECT PROCEDURE Consultation must take place as soon as the employer contemplates retrenchment. Consultation must take place – with a workplace forum. with a registered trade union whose members are likely to be affected or with the employee/s likely to be affected An attempt must be made to reach consensus on — avoiding the dismissals […]
Retrenchment and redundancy are significant aspects of employment law in South Africa. Understanding the legal requirements and procedures surrounding retrenchment is crucial for employers and employees alike. This article provides a comprehensive guide to retrenchment and redundancy in South Africa, exploring the legal framework, consultation processes, alternatives to retrenchment and considerations related to severance packages. […]
Overview A recent judgment of the Labour Court serves as a useful reminder of some of the key principles when it comes to the fairness of a retrenchment. The Court emphasised that an employee whose position has been made redundant is not automatically dismissed and that the employer has an obligation to genuinely consider alternatives […]
Retrenchments – Back to Basics By Jan du Toit Nobody can argue that this year was economically a very challenging year with lots of fatalities in term of job losses. Many employers decided to close shop because of the economic climate combined with the impact of the extended industrial action in the mining industry and […]
Labour law in South Africa is evolving once again, with the Department of Employment and Labour’s Draft Code of Good Practice on Dismissals set to reshape how retrenchments and dismissals are handled. Published on 21 January 2025, this draft brings significant changes that employers must prepare for now. Workforce restructuring is already a complex and […]
May an employer use behavioural characteristics (e.g. initiative, enthusiasm and determination) as criteria to select employees for retrenchment? This was the key question before the Labour Appeal Court (LAC) in the matter of Umicore Catalyst South Africa (Pty) Ltd v National Union of Metalworkers of South Africa (Numsa) obo 5 members. Background Umicore, a manufacturer […]