3 essential steps to pursue during retrenchment

Ous Connie is a 53-year-old factory worker from Soweto who recently found out that she has been retrenched along with 30 of her colleagues. Ous Connie had been working at a clothing factory in Industria for almost 20 years, and survived three major retrenchments after the factory was bought out by a larger firm in the early 2000s.

During the big boom of Chinese imports, many local factories had to downsize and in the process, let go of their staff over the years. This has never affected Ous Connie. In fact, she received a promotion to floor manager three years ago. Her youngest son, Kagiso still lives at home while he finishes his studies at UJ, and her husband runs their spaza shop from the house.

Retrenchment can happen to anyone at anytime but as an employee, it is important to remember that is not your fault that you are being retrenched or dismissed. The reasons for being retrenched are usually economic or technological.

Ous Connie has had to work out what the necessary steps are to make sure that she has followed the correct procedure. It is vital that she begins following the steps to make sure she will be protected and financially safe now that she faces unemployment.

Step 1: Find out what the conditions of retrenchment are

With both small- and large-scale retrenchments, your employer must invite you, or your union/work forum, to consult in writing, and give you all the relevant information needed. Ous Connie has to receive an official letter of retrenchment, which outlines exactly what the conditions of retrenchment are, the time period, and severance package.

The written notice must contain:

• Reasons for the proposed retrenchment
• The alternative measures the employer considered before retrenchment
• When dismissals will take place
• The proposed severance pay
• Any additional assistance from employer
• Number of current employees

Step 2: Consult with your employer to work out retrenchment conditions

Ous Connie is a member of a union at work. She can rely on the union to negotiate terms of her retrenchment on her behalf. The union has to agree on severance pay (Ous Connie is entitled to at least one week’s pay for every year completed at her company). As a policyholder, Ous Connie can also approach Scorpion Legal Protection to give her advice on her rights in this matter. The third party must then come to an agreement with her employer. If no agreement is reached, the employer must use criteria that are fair and objective.

Step 3: Make sure you know your rights

The Labour Relations Act sets out a step-by-step procedure to be followed when an employer embarks on retrenchment. Ous Connie needs to remember that severance pay is calculated at a minimum of one week’s salary for each completed year of service. For example, because she has worked for her employer for 20 years and five months, she will only receive 20 weeks’ salary as severance pay, and not five months’, because five months does not constitute a completed year of service.

For more information and advice on retrenchments and other legal issues that may affect you, contact Scorpion Legal Protection, or visit their Facebook page.

To find out more about Scorpion Legal Protection, call 0861 333 333, or SMS “KASI” to 34453 and they’ll call you back.

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