What Does Labour Law Say About Retrenchment?

What does the South African Labour law say about retrenchment?

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 does the Labour Relations Act say about retrenchment?

Section 189 of the Labour Relations Act (“LRA”) permits employers to dismiss employees for operational requirements. The LRA requires that consultation must take place when the employer contemplates retrenchment.

What are the rules of retrenchment of workmen?

Presiding Officer, Labour Court, Chandigarh and subsequent decisions rejected the narrow interpretation adopted by the Court in the earlier decision and held that any retrenchment, as defined in Section 2(oo), means termination by the employer of the service of a workman for any reason whatsoever otherwise than as a

Related Question What does Labour law say about retrenchment?

What benefits do you get when retrenched?

What payments can you expect as retrenchment benefits?

  • Severance pay – this should be at least one week's remuneration per completed year of service.
  • Outstanding leave must be paid out in full.
  • Notice pay may vary depending on your employment contract.
  • How much compensation does the workman deserve at the time of retrenchment?

    The workman has to be paid, at the time of retrenchment, compensation which is equivalent to fifteen days' average pay (for every completed year of continuous service) or any part thereof in excess of six months; and Notice in the prescribed manner is to be served on the appropriate Government (or such authority as may

    What is retrenchment in what circumstances can the retrenchment be made?

    Retrenchment is the termination of an employee by an employer for reasons other than a punishment meted out by disciplinary action. Employees terminated in such a manner are financially compensated by the employer. This kind of compensation is known as retrenchment compensation.

    Can I refuse retrenchment?

    What is clear from the judgment is that an employer, in the context of a retrenchment exercise at least, may dismiss employees for refusing to accept a change to terms and conditions of employment, provided of course that the employer can demonstrate that there is a genuine operational need to change terms and

    Can employees challenge a retrenchment?

    Can employees challenge a retrenchment? In the absence of a valid justification for the retrenchment exercise, the termination may amount to dismissal without just cause and excuse entitling employees to remedies such as backwages, reinstatement and/or compensation in lieu of reinstatement.

    How is retrenchment package calculated?

    Retrenchment packages are calculated by taking into account factors such as years of service with the employer, how much leave is owed to you, etcetera.

    What is an example of an unfair labor practice?

    Examples include: Refusing to process a grievance because an employee is not a union member. Threatening an employee for filing a ULP charge. Refusing to negotiate in good faith with an agency.

    What is employee retrenchment?

    Retrenchment means terminating an employee due to the surplus of labor or incapacity of employees to match the performance standards of the company.

    What happens if an employer does not pay UIF?

    But as non-payment is an offence, the UIF will levy a 10% penalty on these back contributions (which you can work out yourself), and their finance department will also calculate a daily amount of interest owing (which will vary as there are fluctuations).

    What is a section 197?

    Section 197 of the Labour Relations Act (LRA) places heavy responsibilities on the employer who takes over the business (or part thereof) of another employer as a going concern. This section forces the new employer to take over all the labour related obligations of the old employer.

    Who pays the lay off compensation to a workman?

    - Whenever a workman (other than a badli workman or a casual workman) whose name is borne on the muster rolls of an industrial establishment and who has completed not less than one year of continuous service under an employer is laid- off, whether continuously or intermittently, he shall be paid by the employer for all

    When an employer can terminate the services of workmen?

    As per the ID Act, for termination of services of a workman who has been in continuous service for at least one year, an employer shall provide at least one months' notice (or salary in lieu of notice) (Notice of Retrenchment).

    Are retrenchment benefits compulsory?

    Is it compulsory for employers to pay retrenchment benefit? While retrenchment benefit is not mandated by law, MOM strongly encourages employers to adhere to the advisories, including to provide retrenchment benefit to help affected employees while they search for employment.

    When project is closed is the employer required to take permission for retrenchment?

    Most of the Industrial Establishments are not required to take permission from Government to retrench or closing down of the establishment as per the provisions of the Industrial Disputes Act.

    What is the retrenchment benefit payable to a worker on retrenchment?

    The prevailing norm is to pay a retrenchment benefit of between 2 weeks to 1 month salary per year of service, depending on the company's financial position and the industry.

    Can a company retrench an employee?

    An employer should not randomly retrench his/her employee, it is highly recommended to follow the “Last in, First Out” principle. It means that the most junior employee (ie. the employee with the shortest length of service with the employer, and not the age or rank of the employee) must be retrenched first.

    Is retrenchment fired?

    A retrenchment is defined as termination of a permanent or contract employee's (minimum six-month term) contract of service due to redundancy or reorganisation of the employer's profession, business, trade or work, which would include mergers, restructuring or downsizing whether due to cash flow issues or otherwise,

    Where do I refer unfair retrenchment?

    The CCMA and BC can decide retrenchment procedure disputes in terms of a referral under Section 191(12) of the LRA. Need legal advice? Contact your nearest SEESA office for assistance, alternatively leave your contact details on our website.

    Can I ask to be laid off?

    The quick answer is yes, you can approach either HR or your manager about getting laid off. But, if your manager is someone who will screech about loyalty and fire you for letting her know you'd be happy to be laid off, it's best not to bring it up with her.

    How do you get rehired after layoff?

    Covered employers must provide at least five business days' notice of a job offer to an eligible former employee before filling it. If multiple former employees are entitled to be rehired for a position, the employer must adhere to a preference system such as seniority to determine who will be offered the position.

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