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Planning For Retrenchments

(Excl. 15% tax)

Planning For Retrenchments 
Legislation, Caselaw and Templates

Format: Electronic Download
Type: PDF File
Pages: 89 pages

A comprehensive guide to implementing retrenchments in compliance with s189 & s189A of the Labour Relations Act 66 of 1995 as amended. The toolkit includes templates and extensive caselaw.


2 Introduction  
3 Relevant Provisions of the Labour Relations Act  
3.1 Labour Relations Act 66 of 1995 as amended  
3.2 Small Scale Retrenchments  
3.3 Large Scale Retrenchments  
3.4 Dismissal for operational requirements during strike action 
3.5 Workplace Forums 
3.6 Automatically Unfair Dismissals 
3.7 Unfair Dismissal 
3.8 Referrals of Disputes 
4 Insolvency Act 
4.1 Effect of sequestration on contract of service 
4.2 Insolvency And Liquidation 
5 Calculation of Severance Packages 
5.1 Basic Conditions of Employment Act No. 75 of 1997: as amended by Basic Conditions of Employment Amendment Act, No 11 of 2002 
5.2 Government Gazette No. 24889 No. 691 23 May 2003 
5.3 Calculation of severance pay by Perrott Van Niekerk Woodhouse Matyolo Inc 
6 Unemployment Benefits 
7 Code of Good Practice on Dismissals Based On Operational Requirements 
7.1 Request for Facilitation 
8 Caselaw and Discussion Points 
8.1 CCMA has jurisdiction on all retrenchment disputes 
8.2 Duty to consult 
8.3 Alternatives to retrenchment – interviewing 
8.4 Presenting employees with a new structure as a fait accompli 
8.5 When to start consulting 
8.6 Consensus seeking 
8.7 Use of Checklists 
8.8 Referral of issue in dispute to advisory arbitration 
8.9 Bumping 
8.10 Selection for dismissal 
8.11 Obligation to consider alternatives 
8.12 Consultations with managers 
8.13 Severance benefits 
8.14 Bona fide offers of reinstatement 
8.15 Pre-trial Conferences 
8.16 Disclosure of Information 
8.17 Fixed Term Contracts 
8.18 Longer serving employee retrenched due to being more expensive 
8.19 Which persons should be included in consultation 
8.20 Changing employee’s terms and conditions of employment  
9 Pro Forma Documents 
9.1 Pro Forma Announcement of Contemplated Dismissal due to Operational Requirements - Section 189(3) 
9.2 Request for / Offer of Disclosure of Financial Information 
9.3 Personal Details – Facilitating the Consultation Process 
9.4 Lifo Lists 
9.5 Current vs Revised Staffing Structures 
9.6 Voluntary Retrenchment 
9.7 Using a Settlement Agreement to indicate Acceptance of Voluntary Retrenchment 
9.8 Certificate of Service 
9.9 Format for Keeping Minutes of Consultations, Meetings & Announcements 
9.10 Offer of alternative employment 
9.11 Individual Consultation Guides 
9.12 Statutory Notice 
9.13 Settlement Agreement  
9.14 Pro Forma Retrenchment Policy  
9.15 Checklist Of Key Actions To Be Taken In Retrenchments  
9.16 Services to employees being retrenched  
9.17 The Impact Of Retrenchments, Article by LIfeLine  
9.18 In the shoes of the employee  

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