What is a section 189 letter?

What is a section 189 letter?

RETRENCHMENT GUIDELINE | cliffedekkerhofmeyr.com. The s189(3) notice is a written notice issued by the employer that discloses all relevant information and invites the employee representatives and/or employees to consult with the employer.

What does the Labour Relations Act say about retrenchment?

Section 189 of the Labour Relations Act (“LRA”) permits employers to dismiss employees for operational requirements. If there is no collective agreement, meetings should be held with all employees that could be affected by the retrenchment. …

What are retrenchment letters?

Retrenchment is a form of dismissal due to no fault of the employee, it is a process whereby the employer reviews its business needs in order to increase profits or limit losses, which leads to reducing its employees.

Can you be retrenched during lockdown?

During the national lockdown, section 189 of the Labour Relations Act 66 of 1995 will continue to govern the procedures that must be followed for a fair and lawful retrenchment. Retrenchment is a form of dismissal due to no fault of the employee.

What is unfair retrenchment?

It is a process wherein the employer reviews the business needs, profitability and other operational factors in order to increase profits or limit losses. However, if an employer doesn’t provide the proper reasons and doesn’t follow the proper procedures, the CCMA or Labour Court can consider the retrenchment unfair.

Can you retrench during lockdown?

Can employees ask to be retrenched?

The offer of voluntary retrenchment can be made by either the employer or the employee at any time during the consultation process and before notice of forced termination is given to the employee.

Do employees accrue leave during lockdown?

Do employees continue to accrue annual leave during the lockdown period? In relation to employees in essential services and those who are working remotely, the answer is simple: yes, they continue to accrue leave. The issue is somewhat more complex in respect of employees who are not able to work during this time.

What was the Labour Relations Act of 1995?

Employers are often uncertain as to who they should consult with when embarking on a restructuring exercise in terms of section 189 of the Labour Relations Act 66 of 1995, as amended (“the LRA”).

What is notice of proposed retrenchment in terms of LRA?

This letter serves to give you notice in terms of section 189(3) of the Labour Relations Act (LRA) of 1995 of a proposal to retrench you and, in this connection to invite you to engage with us in consultation with a view to reaching consensus on: appropriate measures to: avoid the retrenchment;

Why was section 189 of the Labour Relations Act created?

The Court’s finding appears to have been premised on the understanding that the hierarchical structure of consultation created by section 189 (1) was created intentionally and that the Courts should not interfere with this legislative choice.

How many employees can an employer retrench under Section 189A?

Section 189A(1) applies to employers that employ 50 or more employees and intend to retrench the following number of employees: 10 employees, if the employer employs up to 200 employees 20 employees, if the employer employs more than 200, but not more than 300, employees