COVID-19 & Retrenchments Retrenchments

06 May 2021

COVID-19 & Retrenchments Retrenchments are governed by section 189 and 189A of the Labour Relations Act 66 of 1999 as amended. Financial losses incurred as a result of the National Lock-down due to Covid-19 “Corona Virus” became a proper and justifiable reason to engage the retrenchment process. Many employers suffered such heavy losses that they have no choice but to restructure the business to ensure its survival or close down. Either way they are bound by the processes states in the Labour Relations Act. Meaningful consultation needs to take place etc. and severance packages must be paid out depending on the years of service worked for the same employer this include domestic employers. REMEMBER IGNORANCE OF THE LAW IS NO EXCUSE, do not jump into retrenchment blindly, seek qualified advice and carefully consider your options first before you engage We can be contacted on email at [email protected]

 

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