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Your seven step guide to implementing retrenchments legally

by , 29 August 2014
South Africa's economy is struggling to grow.

Earlier this week, Statistics South Africa revealed that the country's Gross Domestic Product (GDP) increased by 0.6% in the second quarter of 2014.

We may have narrowly escaped recession, but the economy remains weak. Companies aren't coping and many are resorting to retrenchment to stay afloat.

If you're one of these companies, it's important that you implement retrenchment in a legal manner.

You mustn't let the dire operational circumstances and the pressure distract you from the legal aspects of retrenchment. If you get distracted, retrenchees could take you to court to challenge the process. And this means you'll be in even deeper financial trouble because of the legal costs and compensation you'll have to fork out.

The good news is we're here to help you. Today, our experts reveal a seven step guide to implementing retrenchments legally.

Seven guidelines to help you implement retrenchment in a legal manner
 

Guideline #1: Have a valid reason to retrench and follow a fair procedure.

Guideline #2: Consult with your employees and their representatives before you retrench.

Guideline #3: Issue a Section 189(3) notice inviting the parties you want to consult with regarding retrenchment.

Guideline #4: Follow procedure when selecting employees to retrench.

Guideline #5: Implement retrenchment by giving notice in writing to all the employees you want to retrench.

Guideline #6: Look for alternatives to retrenchment.

Guideline #7: Find out why employers get retrenchments wrong and how to avoid being one of them.

There you have it: Following this seven step guide will help ensure you implement retrenchments legally. And make sure you read the answers to frequently asked retrenchment questions here.

For more information on retrenchment, check out our report: Retrenchments: How to make sure your retrenchment process is 100% correct.

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