Labour Law

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Retrenching Staff

Question:

I am looking at retrenching one of my staff as his position is to become redundant within the company. What are my obligations to him and what are the correct procedures that need to be followed?

Answer:

You will need to complete a 30 day consultation period with him. His severance package is 1 weeks salary per completed 12 months of service plus any leave pay due and 1 months notice pay. This is an involved process and must be followed correctly otherwise you may be in for problems if he refers the matter. I suggest you contact a labour consultant to do the process with you.

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