RETRENCHMENTS - Frequently asked questions answered | Section 189 & Section 189A of the LRA

[@angelocapes5956]

Thank you for the great content. Glad to see you back and uploading great content.

[@carmenfourie5346]

Thanks for letting me know and watching!

[@romeoseun9499]

Good evening I was retrenched last year in December. There was no consultation, and the company didn't follow section 189. They told us that the company is restructuring due to lack of finance. They then send me a mutual agreement form without consultation. After they gave me a retrenchment letter. And requested me to sign the mutual agreement. I took the matter to CCMA and now it is going for arbitration. They are now telling me that I was not dismissed and I should report to work or they will take legal steps

[@minkykhomongoe2356]

Mutual separation can i get the letter that i can take it to the shops that i cant pay anymore

[@carmenfourie5346]

You'll find the mutual separation template here: fourieemploymentrelations.com/downloads/mutual-termination-agreement-operational-requirements/

[@BettyPromise-fx5uo]

Thank you. What if the was no contract & agreement and didn't receive the retrenched letter. I was told that June is my last month

[@carmenfourie5346]

Given there is still sometime - I would recommend you look into your rights and then attempt to resolve the matter with your employer.

[@myrondelport5611]

My previous company went into business rescue and claims they are not able to pay our severence pay and outstandinf leave days.Is this legal or should i approuch CCMA

[@edgararries1195]

Hi Carmen, well informed video, need some assistance regarding current retrenchment as per S189A. Can employer decide selection criteria for dismissal as well as redeployment (alternative) in other business units? Employer has host consultation but never gave us any opportunity to propose, who needs to go and who needs to stay and who can move to the other business units. About 30 employees been handpicked by a hiring manager without consulting with us, but we were advised to apply for job when they become available from other business units

[@tanyavanrooyen822]

Thank you for the informative content, it is much appreciated. Please could you kindly advise in regards to the selection criteria, are the Employer bound to the reasons given in the LRA e.g. LIFO, length of service, skills and qualifications or a combination of these. What if the Company is contemplating retrenchments due to financial grounds as the Company is struggling to keep employees on the payroll and they want to keep employees earning the least amount of salary as this is all the Company can afford.

[@carmenfourie5346]

Thanks for your query - employers are not bound to the selection criteria in the LRA, but to deviate from this - the onus is higher on an employer to prove that the criteria was fair and objective. Using salary to my mind meets the requirement for objective, but I'd need more context to say for certain it meets the criteria of "fair". My suggestion would be to, in the consultation process, include the option for employees to take a salary reduction. Therefore, I would recommend a criteria like LIFO, but asking employees to take a salary reduction. Hope this helps.

[@tinashemanzini7337]

Thank you great content. My question would be, can an employer subject employees to a section 189A process twice in a space of 6 months

[@carmenfourie5346]

Yes, an employer can do the Section 189/Section 189A process more than once in a 6 month time period. This usually happens if the initial cost reduction didn't work or if there were major unforeseen changes that impact on the business.

[@nataniapio3883]

Hi Carmen! Thanks for the informative video. I have a question from an employee perspective: for the consultation process, can an employer choose to conduct the "consultation" via email (written) and not face to face or via video call?

[@carmenfourie5346]

Technically the legislation does not say that the consultation needs to be done in person (face to face or video call), but it was written with this type of consultation in mind. That being said, I have seen many consultation processes done only via email/writing that have been accepted as fair by the CCMA. The main test of fairness will be whether there was an attempt to conduct a meaningful consultation process.

[@seimela]

How much you charge for online consultation

[@carmenfourie5346]

Please send me an email - my consultation rates are subject to change and therefore I don't want to provide that information here. My email: [e-mail]