Retrenching? Do these five things to reduce potential problems
You must deal with the retrenchment process properly.
The nature of this dismissal makes things tough for you from the start.
There's bound to be some resistance when you dismiss employees for operational reasons and not because they've done something wrong. Your employees and their representatives will scrutinise your every move and WILL challenge you if they believe you're not implementing retrenchment in a legal manner.
So how do you reduce potential problems?
Here are five things you can do to ensure your retrenchment process is above board.
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The number one mistake employers make when retrenching employees...
If you know how to avoid it, you'll save your company hundreds of thousands of rands in compensation at the CCMA
Minimise potential problems during the retrenchment process by doing these five things
#1: Make sure you follow the retrenchment process to the letter according to Sections 189 and 189A of the Labour Relations Act 66 of 1995.
#2: Know the requirements of a retrenchment process. Some of the requirements include:
#3: Have valid reasons for retrenching. You must also explain these reasons to the employees.
Remember, you can't retrench employees on a whim or to avoid dealing with performance or behaviour issues, you must explain reasons to your employees.
#4: Pay a basic, minimum retrenchment package.
The Labour Law for Managers says you must calculate the package according to one week's pay for every completed year of service and take into account the value of any outstanding leave. In addition, you must give all employees you're retrenching a formal, paid notice of termination of service.
#5: Pay out pension and provident funds according to the scheme rules where applicable.
The bottom line: Retrenchment can result in labour disputes if you fail to implement them in a legal manner. Reduce potential problems by doing these five things.
When it comes to retrenching staff legally, there's no room for error!
One false step can equal your company's ruin…
The retrenchment process can be extremely long and difficult. All it takes is one false move to land you up at the CCMA... I don't want it to be that way for you.
Today, I want to show you how to legally get through the retrenchment process...
Without any mistakes...
And without forking out hundreds of thousands of extra rands in CCMA awards.
After all, if the court finds you guilty of the same horrific mistake the companies I told you about made... You could fork out an extra R1,080,000 if you retrench 15 of your minimum wage employees incorrectly!
Would your company survive that?
Note: 5 of 1 vote