Can your business avoid retrenchment?
Many businesses are considering retrenching or laying off staff for the simple reason that they have been shut down for the duration of the lockdown or they have not been generating any income. Although this may seem like the only way out, we have to remember that COVID-19 and the lockdown is a temporary situation.
Are there alternatives to retrenchment?
Instead of retrenching employees, there are several alternative options such as the SMME grant, TERS UIF for staff, permitting your staff to work from home, and short time. These alternatives need to be discussed with employees and trade unions to ensure that your employee’s employment contracts are not unilaterally changed.
What if retrenchment is my only option?
In terms of Section 189 of the Labour Relations Act, you will need to follow the correct process to prevent unfair dismissals. Your staff and the unions will need to be consulted and notices will need to be served on your staff. After several consultations and by agreement, you can discuss the retrenchment, confirm the total retrenchment package, and confirm the termination date.
We at Lawson Legal Services understand that the process of retrenchments can be very overwhelming, therefore we have created a retrenchment package, which includes all the notices you require, and 1-hour consultation with our qualified Labour lawyer to guide you down the process.