What should a business consider when retrenching an employee?
What should a business consider when retrenching an employee?
Here are some things businesses might consider, bearing in mind that changes in terms of service require their employee’s consent.
- Reduction in work.
- Reduced pay.
- Voluntary retrenchment.
- Reduced benefits.
- Redeployment.
- Eliminate overtime.
- Freeze new hires.
- Increased duties.
Can a company hire after retrenchment?
In summary, there is no duty on an employer to re-employ a retrenched employee, nor is there a duty to enter into an agreement that provides for preferential re-employment. The employer is, however, obliged to discuss the possibility of re-employment during the consultation process.
How can we prevent retrenching staff?
- Freeze all recruitment for vacant posts.
- identify employees who may be retrained to fill vacant posts.
- reduce the use of consultants.
- reduce all casual labour.
- re-deploy employees from indirect support positions to positions directly related to production operations and sales.
How can I stop being dismissed?
Avoiding Unfair Dismissal Claims
- Have effective employment documentation in place.
- HR & equality training.
- Fair reasons for dismissal.
- Reasons for unfair dismissal.
- Penalties for an unfair dismissal.
- Follow a fair disciplinary procedure.
- Take detailed notes & follow up meetings in writing.
- Treat all employees consistently.
What does it mean when a company is retrenching?
Retrenchment is also known as downsizing, restructuring, or delayering. Over the years, companies may have been bloated in personnel but with business disruption, they are forced to trim the fat of inefficiencies from their ranks. To many employees, retrenchments can be a shocking experience.
How many employees do you have to retrench?
An agreement must be reached regarding ways in which to reduce or avoid the retrenchments and the effects thereof. If the company has more than 50 employees, then at least 10 workers must be considered for retrenchment.
How to treat employees during a retrenchment exercise?
Treat your affected employees with dignity and respect. Consider having a longer retrenchment notice period for all your affected employees. During the retrenchment exercise, you should: Pay all salaries, including unused annual leave, notice pay, etc., to your employees on their last day of work.
Can a company dismiss an employee on the ground of retrenchment?
The right of management to dismiss workers on the ground of retrenchment to prevent serious losses is governed by Article 283 of the Labor Code. This is one of the authorized causes of termination of employment. However, before one can dismiss employees on the ground of retrenchment, four elements must be proven.