Question:

The company my wife works for announced on 31 July 2009 that they were changing the structure of the company. Yesterday morning (6 August 2009) the entire company was called for a meeting informing them that according to law they were starting with retrenchment process. 3 hours later she was informed (6 August 2009) via e-mail the following: “With reference to the first and second consultation meetings held with Management on the 27th July and the 7th August and with staff on 31st July and 7th August, regarding the need for changes to the Operational Requirements of the company, please be informed that you are an effected party regarding the proposed retrenchment process. We will be engaging in one on one consultation’s with you on Tuesday 11th August”.

At the meeting held yesterday they were already informed that the affected people will have to leave on 31 August 2009. They have identified 25 staff for retrenchment and it is their (the staff’s) responsibility to to come up with any alternatives. MY QUESTION: The timing seems to be to fast. Here employment contract states she would have to give at least one calender month notice. Should they not at least give the same? or does retrenchment cancel the contract? Should they not first consult, then inform them of their decisions? It has already been indicated that the decision has been taken, the meeting with her is just a formality. We probably will not try to fight the case, as long as they follow the correct procedure. The last 6 months have been difficult as the companies conduct is questionable. They fired a string of people, and as soon as the person gets legal representation they withdraw the termination letter. Looking forward to your response.

Answer:

Retrenchment needs to follow a prescribed procedure and there has to be due consultation. A one month process is normal. The problem with retrenchment is that to fight it one has to refer to labour court and not CCMA. This can prove costly and protracted. (They will know this). They are obviously fast tracking the process with the latter knowledge so even if unfair in a way its a “well then do what you want attitude>”

They will need to pay out a one month notice + one week per years service severance package which is prescribed.

Helpful Resources … Dig Deep