This week Ivan Israelstam explains the process an exployer should adopt if a retrenchment of employees is contemplated. He explains what the steps are to be followed, to ensure that the employer complies with the requirements of the Labour Relations Act for what is an operational requirements dismissal.
When employers are faced with financial challenges, and contemplate retrenching employees, it is critical for the employer to first consult on alternatives to avoid retrenchment. Ivan Israelstam explains what is required, and how employers should consider alternatives. If the employee makes proposals, which the employer does not accept, it is necessary that the employer provides a response on why the alternative proposed is not a viable option.
A retrenchment is considered a "no fault" dismissal. Therefore, while it may become necessary for a company to retrench, every consideration should be given to alternatives to retrenchment. This applies particularly to employees with long service, and also to employees who have the skills required to maintain and develop the business. Ivan Israelstam what aspects should be considered by companies before deciding on a path of retrenchment