What is a section 189 retrenchment?

What is a section 189 retrenchment?

Section 189 of the Labour Relations Act (“LRA”) permits employers to dismiss employees for operational requirements. These are defined as requirements based on economic, technological, structural or similar needs of the employer.

What is the minimum retrenchment package in South Africa?

one week’s
Severance pay – this should be at least one week’s remuneration per completed year of service. Remuneration is calculated including basic salary and payments in kind. Outstanding leave must be paid out in full. Notice pay may vary depending on your employment contract.

Can an employer withdraw a retrenchment?

Yes, retrenchments are “no fault” dismissals. It is not the fault of the employee that the company cannot afford the salary of the employee anymore and as such notice periods agreed upon must be honoured. The employer may ask the employee not to return to work but must then pay the notice period.

What is the meaning of section 187?

Section 187(1)(d) of the Labour Relations Act 66 of 1995 (LRA) regards it an unfair dismissal if an employer dismisses an employee on the basis that the employer is taking or intending to take action against the employer.

What is a section 198?

Section 198 allows for fixed term contracts longer than three months. A law, sectoral determination or a collective agreement (which does not have to be a bargaining council collective agreement) can also allow for fixed term contracts to be longer than three months.

What is unfair retrenchment?

It is a process wherein the employer reviews the business needs, profitability and other operational factors in order to increase profits or limit losses. However, if an employer doesn’t provide the proper reasons and doesn’t follow the proper procedures, the CCMA or Labour Court can consider the retrenchment unfair.

How long can you claim UIF after retrenchment?

How many months can you claim for Unemployment at UIF? UIF can be claimed for 12 months, provided that you have full credit days. Credits accrue as follows: for every four days that you work as a contributor, you receive one day’s credit, subject to a maximum of 12 months.

How long does UIF take to pay out after retrenchment?

How long does a payout take? The whole claiming process can take up to three hours. The first payment will be made to your bank account two to four days after the process is complete. You must also make a claim within six months after your last day of employment.

Is a severance package?

California law generally does not require employers to provide severance pay or severance packages to a worker upon termination of the job.

How much severance pay is normal?

The severance pay offered is typically one to two weeks for every year worked, but it can be more. If the job loss will create an economic hardship, discuss this with your (former) employer. The general practice is to try to get four weeks of severance pay for each year worked.

What is a section 197?

Section 197 places a duty of care on the new and previous employer who conclude a transfer of employee contracts of employment or a business to ensure that the same benefits of the employees are reserved.

What is an employee in terms of Labour Relations Act?

SECTION 213 of the Labour Relations Act (LRA) provides that an employee is anyone, other than an independent contractor, who works for another person or who assists in conducting the business of an employer.