What To Do When Your Company Is Retrenching

An employer is obliged to consult with its employees when it contemplates dismissing one or more of the employees for operational reasons. Keep in touch with purchasing agents and accountants at the company to nose out whats really going on with cash flow and whether the company is nearing the end.

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Re-deploy employees from indirect support positions to positions directly related to production operations and sales.

What to do when your company is retrenching. An employee that feels she has been unfairly retrenched may refer hisher dispute to the Commission for Conciliation Mediation and Arbitration CCMA or a bargaining council. Contrary to popular belief there is no blanket andor mandatory requirement that an Employer must re-employ an employee after retrenchment should a suitable vacancy arise. Reduce the use of consultants.

Re- re- trenchier to cut. In the event that your employee becomes unemployed due to retrenchment dismissal or contract expiry NOT resignation or is unable to work due to illness maternity or adoption leave they will be able to claim from the fund. Employee is a member If the.

Section 189 1 of the LRA provides that before retrenching employers must consult any person whom the employer is required to consult in terms of the collective agreement. Middle French retrencher to remove suppress from Old French retrenchier. Identify employees who may be retrained to fill vacant posts.

Getting rid of unproductive divisions acquisitions or products. Shutting down unprofitable operations and selling the assets. The goal is to refocus on profitable.

However retrenchment should not be seen as the first option. Many companies invest their efforts in helping the retrenched employees get another job elsewhere. Human resource has to look into the needs of those who remain.

The first step is to consult with employees as soon as the company contemplates a reduction of staff through retrenchments In many instances trade. As per the definition the main aim of the retrenchment strategy is to make the organization financially stable. If there is no collective agreement meetings should be held individually with all Employees that could be affected by the retrenchment.

See trench retrencher n. A company can only consider retrenchment of one or more employees if its economic technological structural or similar requirements justify the need to retrenchThe processAnastasia Vatalides head of Werksmans Attorneys labour and employment practice says the LRA prescribes that the employer must disclose all the relevant information which the employees will require to consult. Archaic To remove delete or omit.

There are three main methods. Reduce all casual labour. Employers have the right to retrench workers for operational reasons but many employers use cutbacks to reduce their workforce.

Remember that your employees who survived the exercise are watching in case their turn comes on another occasion. This strategy can also be used to get a good stand in this competitive market. Dismissing five employees with small salaries will certainly not solve a companys financial problems.

To reduce expenses for example. Your employee will be placed under your number for as long as they work for you. The employee must refer a dispute to the CCMA or bargaining council within 30 days from date of retrenchment.

Employers Must Follow the Correct Procedure when Retrenching Workers. Restructure operations to be leaner and more profitable. The new owners bought your company for certain reasons.

Retrenchment strategies are also used to cut down operating expenses and reduce the size of the company for the betterment of the organization. Most likely making more money tops that list. Be alert to opportunities where you can help them do exactly that.

Freeze all recruitment for vacant posts. This is ethical and positive especially when they have many mouths to feed. All employees and their employers involved in a retrenchment should at least be aware of the following seven things.

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