Tag: retrenchment

South African labour law is often accused of being “too employee-friendly”. Employers complain that the Commission for Conciliation, Mediation and Arbitration (CCMA) favours workers, that dismissal has become impossible, and that labour regulation is strangling business.

South Africa’s new Code of Good Practice: Dismissal took effect, replacing the previous codes on dismissal and operational requirements. The new dismissal code, guided by the Labour Relations Act 66 of 1995 (LRA), offers employers practical guidance on handling dismissals related to misconduct, incapacity and retrenchments.

In Mqikela vs Pristo Response Trading, the South African Labour Court found that a supposed retrenchment had masked the real reason for dismissal. The employee had referred an unfair labour practice (ULP) dispute to the Commission for Conciliation, Mediation and Arbitration (CCMA). This case exemplifies an automatic dismissal due to ULP.

To have a chance of winning a case at the Labour Court, a party must present proof to the judge. In the case of Malekunutu vs Joburg Bolt (Lex Info 17 January 2025. Labour Court case number JR1806/21), the employee faced retrenchment. The employer claimed financial difficulties as the reason for this decision.

Employee benefits such as a retirement fund, healthcare insurance, medical scheme membership, group life and disability benefits are pre-negotiated and agreed upon as part of the employment process and contracting. Typically, these benefits remain in place until the employee-employer relationship concludes through resignation, dismissal, retrenchment, retirement or death.

South Africa’s tough economic conditions have left many consumers struggling to build emergency cash savings. According to our data, more than half (52%) of entry level private banking clients have less than one month of their salary saved in immediately accessible cash savings available, to use in the event of unforeseen circumstances such as retrenchments or urgent medical procedures.

No matter how much you love your job, financial freedom should be your ultimate goal. For those unfamiliar with the term, financial freedom can best be understood as a state where individuals or households have enough financial resources to cover their living expenses without having to depend on work to maintain their standard of living.

The South African Competition Commission has published its final revised Public Interest Guidelines relating to merger control. The guidelines serve to clarify the commission’s stance on public interest factors as set out in the Competition Act 89 of 1998 (as amended).

You’ve just received your dream job offer, but there’s a catch. You need to start the new job in a month’s time, but your current employer requires you to give three months’ notice.

The law makes it compulsory for employers to consult with the potential retrenchees or with their representatives before deciding to retrench. Despite this, employers often refuse to allow the employees to bring external representatives to the consultation meetings.