How do you justify a retrenchment decision?
To justify retrenchment, there must first be redundancy. In proving redundancy, there must be a surplus of labour or the requirements of the job functions of the employee have ceased or diminished to the extent that the job no longer exists.
Is retrenchment a dismissal?
What is 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.
What are fair reason for retrenchment?
Typically, economic reasons given regarding the need for retrenchment include the ability to make money or to retain sufficient funds to continue operations. The courts are divided on whether the desire to increase profits is a fair reason for retrenchment.
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 are the right retrenchment procedures?
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 are the rules for retrenchment?
Is retrenched the same as redundancy?
Once the position is redundant, the person in that role can either be: redeployed (given another job), or. retrenched (lose their job and not be offered another).
Can you claim UIF if you are retrenched?
Employees who are registered with the Unemployment Insurance Fund (UIF) and who have been contributing to the Fund can claim. Can I claim from the UIF fund if I have resigned? You can only claim unemployment benefits if you have been dismissed or retrenched or if the contract has expired.
How long does a retrenchment process take?
Normally on average such a process takes between two and three weeks. We employee more than 50 employees and contemplate dismissing at least 10 employees based on the company’s operational requirements. In such instances the employer will have to follow the steps outlined in section 189A of the Labour Relations Act.
What is a section 189 process?
THE SECTION 189 RETRENCHMENT PROCESS IN TERMS OF THE LABOUR RELATIONS ACT. 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.
Can you be retrenched without being consulted?
The court found that in some circumstances the answer is yes. An employer can finalise a retrenchment agreement with a majority union – and the outcome will bind minority unions, even when their members have not been consulted.
Can you ask to be retrenched?
Voluntary retrenchment is an alternative to forced retrenchment. A voluntary retrenchment means an employee agrees or volunteers to be retrenched and therefore waives any right he / she may have to refer an unfair dismissal dispute to any external forum after termination of his / her services.
What are the advantages of retrenchment?
Advantages of retrenchment include reduced costs, improved efficiency, improved competitiveness and reduced reliance on the markets. Retrenchment increases profits for shareholders and creates a strategy to survive economic downturn.
What to do when you are retrenched?
What to do if you are retrenched
- Contact your creditors immediately:
- Check to see if you have retrenchment cover:
- Claim on credit life insurance:
- Claim UIF:
- Manage your finances:
- Change your bank account:
How long can you claim UIF when retrenched?
If you have been contributing to the Fund for four years or more, then you can claim for up to 238 days. If you have been contributing for a shorter period, then you can claim 1 day for every 6 days that you worked while you were contributing to the Fund.
What documents do I need to claim UIF when retrenched?
To claim unemployment benefits you need to have:
- A copy of 13-digit bar-coded identity document.
- A copy of your last six payslips.
- Information supplied by your employer (UI-19).
- A service certificate from the employer.
- Proof of registration as a work seeker.
- A fully completed registration form.