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10 Alternatives to avoid retrenchments

by , 24 August 2015
The Labour Relations Amendment Act has introduced stricter terms when it comes to retrenchments.

One of these include looking at other ways to avoid retrenchments. If you don't, employees who face retrenchment or their representatives can take you to the CCMA and say you didn't try and find other alternatives to stop the retrenchments.

But we are here to help you stay one step ahead.

Consider the below 10 alternatives to avoid retrenchments and being taken to the CCMA...


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Consider these 10 alternatives to avoid or reduce retrenchments

1. Find ways to increase productivity;
2. Downsize costs and expenditure;
3. Increase or decrease shifts and length of shifts;
4. Decrease the number of contractors or casual labourers. Use employees to do the work the contractors or casual labourers do;
5. Implement a skills development programme to help employees move into different positions;
6. Stop overtime or Sunday work;
7. Cut down wages on agreement with staff members;
8. Offer early retirement or schemes;
9. Don't hire new employees for that time; or
10. Reduce workforce by way of natural turnover. For example, don't replace staff when they leave through resignation, dismissal, retirement or any other form of termination.

If you don't find another alternative to retrenchments, then you have to give employees a compensation package.
 


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