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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Building Industry, Cape of Good Hope

Extension of Main Amending Collective Agreement to Non-parties

Chapter Eight : Termination of Employment

43. Retrenchment

 

(1) An employer who proposes retrenchment shall, not later than ten working days before the proposed date of notice of the termination of any employee's services, provide any of the trade unions of which, to his knowledge, prospective retrenches may be members, with the following information in writing:
(a) The number of employees who may be retrenched, together with their names, duration of service, Council Holiday Fund numbers, and job categories;
(b) the proposed date of retrenchment;
(c) the reasons for the proposed retrenchment, including all alternatives which the employer has considered and the reasons for rejecting them;
(d) the proposed selection criteria in respect of retrenchees;
(e) the proposed date for consultations with the trade union(s) and/or employee(s) likely to be affected;
(f) the proposed severance pay; and
(g) the employer's proposals for assistance to retrenchees, including the possibility of re-employment.

 

(2) In the event of an employee likely to be affected by the proposed retrenchment not being a union member, the information referred to in paragraph (a) shall be forwarded direct to that employee.

 

(3) The trade union(s) and/or the employee(s) shall provide the employer with a written response to its retrenchment proposals by not later than three working days before the proposed date of consultation, which shall include all of its/their proposals in respect of the retrenchment.

 

(4) The employer shall attempt to reach consensus with the trade union(s) and/or employee(s) on the retrenchment proposals through consultation: Provided that should consensus not be reached before the expiry of the ten-day period referred to in paragraph (a), the employer shall be entitled to implement its retrenchment proposals,

 

(5) The employer shall be entitled to implement its retrenchment proposals at any stage if the trade union(s) and/or employee(s) do not provide written responses or refuse and/or fail to consult with the employer in accordance with this sub clause.

 

(6) An employee who is retrenched in terms of this sub clause shall be entitled to severance payment of one week of that employee's current remuneration per completed year of continuous service with his employer.