SA’s economic turbulence has resulted in retrenchments becoming a common practice. Of late, Telkom retrenched over 1000 employees as part of its restructuring exercise. The onus is on the Employer to ensure that it follows the operational requirements for a fair dismissal in terms of a retrenchment. The Employer must provide a legitimate and lawful […]
Many factors can give rise to retrenchments, among them a drop in sales due to economic factors, requiring fewer employees due to new labour saving technology, deciding to outsource labour to save costs, or rationalisation of employees resulting from mergers or buy outs. Previously, the courts were quite lenient towards employers with regards to retrenchments.