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Consider these three retrenchment alternatives before you follow Amplats' example

by , 20 August 2013
This morning, Anglo American Platinum announced it'll retrench 6,900 employees. According to media reports, the company has concluded talks with unions and the Department of Mineral Resources to restructure the company. While the company has cited operational reasons for the move, there are things you can do to avoid retrenchments. Read on to find out what they are so you can implement them if you're considering retrenching.

Retrenchment is a dismissal for operational reasons and is classified as a no-fault dismissal, explains the Labour Law for Managers Loose Leaf Service.

According to FSPBusiness, this means your employee isn't accountable for his current circumstances. And, as a result, there's an increased burden on you to ensure a fair and proper process during retrenchments.

One way to do this is to look for other alternatives to retrenching.

Retrenching? Why not consider these alternatives first?

The labour law requires you to look carefully at ways and means to avoid retrenchments.

You could:

  • Offer your employee another job elsewhere in the company or group.
  • Offer your employee a lesser job with a lower package. Remember, your employee isn't obliged to accept this offer, but you should offer.
  • In addition, you can offer alternative positions to employees with long service even if that means retrenching other employees who currently occupy these positionsThis process is called 'bumping'.

According to the Labour Law for Managers Loose Leaf Service, the principle behind bumping is that it gives greater job security to employees with longer service.

Remember, you don't necessarily have to bump if you can come up with a good reason why it doesn't make business sense to do so.

While retrenching isn't easy for both you and your employees, you can try to make it a little bit easier if you take these alternatives to retrenchments into account.
 



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