14/02/2018
From time to time I will draft a post relating to current trends. This is the first of the posts and pertains to Retrenchment. Also termed a Dismissal for Operational Requirements.
Retrenchment occurs, when an employer has a need to reduce its costs. The need to reduce costs could be for numerous Operational Reasons. One of, if not the biggest cost to an employer, is employee’s remuneration. Therefore in an attempt to improve efficiency, the employer reduces its salary bill by dismissing staff due to Operational Requirements.
There is no such thing as a quick Retrenchment as the provisions of prevailing legislation dictate that a number of boxes have to be ticked. Should an employer decide to ignore some or any of the boxes, the dismissal due to the Retrenchment is likely to be ruled unfair if challenged at the CCMA or relevant Bargaining Council.
If you have any questions or require advice about Retrenchment please drop me an email, inbox me or call me.
