Posted by: DN | 2009-06-22

Retrenchment procedure


On the 12th June (Friday) our company informed us that our business unit wasn' t doing well but we shouldn' t panic becos the other units will help us along. The following Monday, 15th of June our business unit director called an urgent meeting for Wednesday wherein we were told that 2 employees could be retrenched becos our unit isn' t doing so well! The employees were identified by their positions and bcos it' s a small unit, it was pretty obvious who those 2 are. We were asked to give in suggestions for today which will be considered - altho the email sent to everyone says all options have been considered and this was the only thing left to do. We will hear of the final decision this Friday and the employees will be given their notices on July 1st. Is this well within what the labour law stipulated wrt to procedure followed when retrenching?

Thank youl

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Our expert says:
Expert ImageLabour lawyer


It sounds like the rentrenchment procedure was severly truncated and that they haven't followed Section 189 of the labour Relations Act properly. In essence, it is suggested that you challenge this procedure and you also challenge the merits. You need to get everyone together to attest two affidavits that your boss had informed you on the 12th June that you shouldn't panic and that you won't be affected. Once you have this, you may approach the CCMA for a conciliation. Thereafter you will have to approach the Labour Court for an unfair retrenchment if you don't settle at the CCMA. You can approach attorneys to help you with the referral to the Labour Court.

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