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Question
Posted by: Susan | 2010/10/13

Retrenchment due to economy

Hi. I have a shop with 11 employees. when we bought the shop we took over 8 employees. And to be honest, they are not the best workers an employer can ask for, but also they stay within their limits and therefore was never dismissed. We employed 3 new employees, and they are very hard working.
My ? now is, if we retrench due to financial reasons, can we do it based on work performance and not as rule last in first out? PS: some of the “ lazy’  workers are 3 in the same position, can we motivate that they are to many for a certain position?

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Our expert says:
Expert ImageLabour lawyer

re: Retrenchment due to economy

Every company must follow Section 189 or Section 189(A) of the Labour Relations Act. You will follow Section 189 because you have less than 50 employees. You need to give each employee a letter in terms of Section 189(3). It is recommended that you read this section very carefully and you follow it to the letter of the law.

If people were started on the exact same date, then you would choose people in accordance with their abilitites.

The information provided does not constitute a diagnosis of your condition. You should consult a medical practitioner or other appropriate health care professional for a physical exmanication, diagnosis and formal advice. Health24 and the expert accept no responsibility or liability for any damage or personal harm you may suffer resulting from making use of this content.

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Our users say:
Posted by: Labour Lawyer | 2010/10/19

re: Retrenchment due to economy

Every company must follow Section 189 or Section 189(A) of the Labour Relations Act. You will follow Section 189 because you have less than 50 employees. You need to give each employee a letter in terms of Section 189(3). It is recommended that you read this section very carefully and you follow it to the letter of the law.

If people were started on the exact same date, then you would choose people in accordance with their abilitites.

Reply to Labour Lawyer

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