This week Ivan Israelstam addresses the danger of an approach used by some employers, who have not effectively managed performance and behaviour. To remove "troublesome" employees - who should have been disciplined or performance managed - the employer goes to great lengths to manipulate positions, and to create a redeployment pool, which effectively amounts to a redundancy pool. Ivan demonstrates how the Labour Appeal Court has the power to uncover alternative agenda, and the consequences of such poor management performance.
Employers may retrench employees for reasons of economic, structural, or technological reasons, in terms of the Labour Relations Act and the Code of Good Practice on Operational Requirements Dismissals. The Labour Appeal Court has stated that retrenchment has a serious impact upon employees. Decisions on retrenchment therefore have to be made based upon sound objective criteria, which emerge after consultation with the parties concerned, and are backed by evidence. Ivan Israelstam sets out the issues determined by the courts in two cases.
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