In summary, there is no duty on an employer to re-employ a retrenched employee, nor is there a duty to enter into an agreement that provides for preferential re-employment. The employer is, however, obliged to discuss the possibility of re-employment during the consultation process.

How long is the retrenchment notice period?

If employed for less than six months – one week’s notice; if employed for more than six months but not more than one year – two weeks’ notice and if employed for more than a year – four weeks’ notice. Domestic and farm workers, who have been employed for more than six months, must receive four weeks’ notice.

How do you use retrenchment in a sentence?

Retrenchment sentence example

1. The need of financial retrenchment led to his opposing the proposal that war veterans should receive a cash bonus.
2. On the 6th of December a Conservative cabinet was formed under Seor Silvela, Seor Villaverde, pledged to a policy of retrenchment , taking the portfolio of finance.

What are you entitled to when you get retrenched?

Severance pay – a retrenched employee must at least be paid 1 week’s pay for each completed year of ongoing service. if the employee was employed for more than 6 months but less than 1 year, s/he must be paid 2 weeks’ notice pay; if the employee was employed for more than 1 year, s/he must be paid 4 weeks’ notice pay.

Can you retrench 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.

Which of the following is an example of retrenchment strategy?

Examples of Retrenchment strategy • General Motors of the United States stopped producing a number of “makes” of automobile. GM decided that it needed to retrench by concentrating on just a few “makes.” It hoped this would help it return to profitability.

Is retrenched the same as redundancy?

Once the position is redundant, the person in that role can either be: redeployed (given another job), or. retrenched (lose their job and not be offered another).

What happens to your pension when you get retrenched?

If you retire from a pension preservation fund, you have the option of taking up to a maximum one-third lump sum withdrawal, which will be subject to tax. Thereafter, you are obliged to use the remaining two-thirds to purchase an annuity to provide you with an income during retirement.