What is the law regarding retrenchments in South Africa?

What is the law regarding retrenchments in South Africa?

A fair retrenchment process and your legal rights in South Africa. South African law, specifically section 189 of the Labour Relations Act, states that employers cannot retrench employees without following due process. Failure to do so could land the employer in legal hot water (more on this later in the feature).

What is Section 197 of the Labour Relations Act?

Initial Outsourcing A transfer occurs when a business (which may include the whole or a part of any business, trade, undertaking or service) transfers by one employer (old employer) to another employer (new employer) as a going concern (section 197, Labour Relations Act 66 of 1995 (LRA)).

Can you retrench 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.

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 company hold your check for any reason?

Can an employer withhold pay for any reason? No. Employers can’t withhold wages for labor performed during any given pay period.

What does the Labour Relations Act mean for employees?

Ivan Israelstam. SECTION 213 of the Labour Relations Act (LRA) provides that an employee is anyone, other than an independent contractor, who works for another person or who assists in conducting the business of an employer. This definition omits only service providers who are external and/or truly autonomous.

How much UIF can I claim during lockdown?

If an employee’s remuneration is less than R3 500.00, the UIF payment will be R3 500.00. For employees earning equal to or in excess of R17 712.00 the maximum amount that may be claimed will be R6 730.56.

Can you dismiss an employee during lockdown?

Whilst some jurisdictions have seen the introduction of a ban on redundancies during the COVID-19 lockdown, South African employers remain entitled to terminate employment contracts, including for redundancy, conduct or capacity. The Labour Relations Act (LRA) mandates a fair procedure prior to terminating employment.

How do you fight unfair retrenchment?

An employee that feels s/he has been unfairly retrenched may refer his/her dispute to the Commission for Conciliation, Mediation and Arbitration (“CCMA”) or a bargaining council. The employee must refer a dispute to the CCMA or bargaining council within 30 days from date of retrenchment.