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Retrenchments

Can fixed-term employees be retrenched?

Most employment agreements are permanent, terminating only when an employee is dismissed, resigns, retires or dies. An alternative to this is a fixed-term contract where the relationship lasts for a predetermined period of time and will only terminate at a specific event or date. Pre-empting this natural termination can be problematic, especially when retrenchment is the envisioned mode of termination. In today's uncertain economy, many employers are forced to embark on this unfortunate route, retrenching their employees on grounds of operational requirements as per section 189 of the Labour Relations Act 66 of 1995 (LRA). However, when it comes to fixed-term employees, the road becomes treacherous...

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Can you force employees to apply for their own jobs or …

... Face retrenchment?

If you ever land up at the CCMA, you'll see retrenchment laws well summarised on their wall notices. Unfortunately, employers only get to see these summaries when it's too late, they've possibly unfairly dismissed an employee and the legal process has begun. In this article, find out what's the truth when it comes to retrenchment laws.

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When a retrenchment is unfair, what happens to the severance you’ve already paid the employee?

 

In the recent unreported case of Coca Cola South Africa (Pty) Ltd v Ndlovu and others (case no D813/11 delivered on 7 May 2013), the Labour Court dealt with the issue of if severance pay: Must be taken into account when an employee is awarded compensation if it is found that he was unfairly dismissed.

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Retrenchment: Get it right or face legal exposure!

When times are tough and revenues are slipping, companies are typically forced to look at cutting costs. Once all possible cut-backs in areas such as in training, travel and marketing have been made, companies inevitably start focusing on their biggest expense - labour.

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Retrenchment laws are still being broken

I frequently receive calls for help from HR practitioners being taken to the CCMA and Labour Court for unfair retrenchments. Often, the problem is that the employer did not have a fair reason to retrench the employees.

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