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Question
Posted by: Concerned | 2011/06/15

Retrenchement &  Addendum to Contract of Employment

Hi There,
I need some advice please....
The company I am working for issued us an addendum to contract of employment, which stipulates that we can''t accumulate leave anymore, we must submit a leave plan. 13th cheques are not compulsory anymore, it is to the discretion of management, and that they will only pay 50% of the lowest basic medical aid plan. This is a problem for me because I have accumulated a lot of leave, which is worth a lot of money to me, and that is pretty much all I have to show for the last 5 years dedication and hard work. Is there anything I can do about this? Is an addendum to our contract of employment like this legal?

Then the company is also retrenching staff. Nobody was notified by issuing any form of notification. People have just been called in. Voluntary retrenchments have not been made available to salary staff, but has been made available to wage employees. I want to ask for voluntary retrenchment. Am I allowed to do this? Can they deny me the retrenchment while they are busy retrenching?

Thanking you in advance for your advice.

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Our expert says:
Expert ImageLabour lawyer

Re: Retrenchment & Addendum to Contract of Employment

The addendum to the contract of employment can be legal as long as the company has consulted prior to the amendment. It has become common practice not to allow people to accumulate leave and for the 13th cheque to be made discretionary.

With regard to retrenchment the company must issue a notice in terms of Section 189(3). Obviously if there are voluntary retrenchments then this is a completely different exercise. If the voluntary retrenchment exercise is still open you can apply for same.

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1
Our users say:
Posted by: Labour Lawyer | 2011/06/17

Re: Retrenchment & Addendum to Contract of Employment

The addendum to the contract of employment can be legal as long as the company has consulted prior to the amendment. It has become common practice not to allow people to accumulate leave and for the 13th cheque to be made discretionary.

With regard to retrenchment the company must issue a notice in terms of Section 189(3). Obviously if there are voluntary retrenchments then this is a completely different exercise. If the voluntary retrenchment exercise is still open you can apply for same.

Reply to Labour Lawyer

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