Does receiving a notice contemplating retrenchment from your employer mean that a final decision has been made?

Does receiving a notice contemplating retrenchment from your employer mean that a final decision has been made?

If you receive a notice contemplating retrenchment from your employer, this does not mean that a final decision has been made.

The companies are required by law to follow certain processes when terminating employment contracts through retrenchment.

Section 189(3) of the Labour Relations Act (LRA) requires an employer to give an employee a notice and conduct consultations when they contemplate dismissal. This notice should contain the following information:(see the requirements of this notice in Section 189(3))

It is of paramount importance to note that retrenchment is not a concluded decision and can be interdicted in the Labour Court or challenged through industrial action, if it is unlawful.

Once the notice is given, all the parties must engage in the consultation, otherwise known as a joint consensus seeking process, to determine the options that are available.

Retrenchment due to operational requirements, can be on the basis of technological, economical or structural requirements for the company.

Once the terms of retrenchment are finalised, employees must be paid a minimum of one week’s remuneration for every completed year of service and must be paid statutory money due to the employee. For more information on your legal rights, kindly contact Duvenage Attorneys and we will gladly assist you.