HomeHome SearchSearch MenuMenu Our productsOur products

Thinking of retrenching staff? Make sure you've consulted with them on these seven aspects of retrenchment first!

by , 03 April 2013
A fire broke out at Sibanye Gold's Beatrix West operation on 19 February. Damage was extensive - so much so that the company is now considering retrenching 6% of its employees. The company's now in consultation with its employees in order to make the retrenchment process as pain-free as possible. Here are seven aspects you'll need to consult employees on to ensure your retrenchments also stand up as substantively and procedurally fair...

Sibanye Gold's output and revenue has been severely affected by an underground fire.
 
In financial terms, the lost production amounts to R28 million and the damaged area will be inaccessible until at least the middle of next year, says TimesLive.
 
That's why the mine's now started talks that may lead to job cuts at its Beatrix West operation.
 
"We are looking at ways to minimise the losses and depending on the discussions with the government and unions there may be lay-offs," spokesperson James Wellsted said in the article.
 
Whether your company has a workforce big enough for such large-scale retrenchment plans or you're only planning on retrenching one person, the results are always drawn out and upsetting to everyone involved, says FSP Business.
 
That's why retrenchments often mean time at the CCMA when disgruntled former employees claim the dismissal was unfair.
 
Make sure you have fair and valid reasons for retrenchments
 
Because a retrenchment is just like any other dismissal, you must have a fair and valid reason to retrench – and you must follow a fair procedure in doing so, says The Labour Law for Managers Loose Leaf Service
 
Not sure where to start?
 
The CCMA says if your company is contemplating retrenchments, Section 189A of the Labour Relations Act needs you to give employees notice and to consult with them on a range of issues first.
 
You're legally obliged to consult with your employees on the following seven aspects of retrenchment
 
 You'll need to consult with your employees on the following seven aspects of retrenchment: 
  1. Reasons for the proposed retrenchment; 
  2. Measures to avoid retrenchments; 
  3. Possible alternatives to retrenchment; 
  4. Timing of the dismissals
  5. The method of selecting employees for retrenchment; 
  6. Severance pay; and 
  7. Measures to mitigate the harsh effects of retrenchments.
     
Then, remember that your employees' trade union or worker representatives may request a CCMA facilitator within 15 days of receiving the notice of possible retrenchments, says FSP Business.
 
Follow these steps and you'll have proof that your retrenchment process is fair.
 
 


Related articles




Related articles



Related Products



Comments
0 comments


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance



Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today



Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism



This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands



Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>