Retrenchment is a form of dismissal due to no fault of the employee. Written by Robin Gerhold, Partner, Gerhold and van Wyk Attorneys and Conveyancers, for LexisNexis South Africa. Like many other countries worldwide, South Africa went into a 21-day national lockdown on 27 March, in an effort to help slow down the spread of the Coronavirus (COVID-19). School-aged children (6 to 13y): 9 to 11 hours; Teenagers (14 to 17y): 8 to 10 hours; Younger adults (18 to 25y): 7-9 hours During the national lockdown, section 189 of the Labour Relations Act 66 of 1995 will continue to govern the procedures that must be followed for a fair and lawful retrenchment. The employer is obliged to consult for a period of 60 days from the date on which the retrenchment notice is issued.” “The long-term impact of the lockdown remains difficult to predict,” Myburgh concludes. During the national lockdown, section 189 of the Labour Relations Act 66 of 1995 will continue to govern the procedures that must be followed for a fair and lawful retrenchment. The national lockdown and the recent credit agency downgrades have left many business owners with very few options as uncertainty prevails and the risk of mass retrenchments becomes a very real possibility. When Ramaphosa moved South Africa’s lockdown to Level 4, Tsopo had taught himself, with the help of YouTube, how to bake muffins and scones, which he sold to people in his neighbourhood. Even prior to the lockdown, it was foreseen that the economic impact would be severe and that many jobs would be lost. These consulting parties include those mentioned in the collective agreement as well as the registered trade union … SA's biggest non-food retailer Edcon has served 22,000 of its employees with notices of retrenchments as it blames load-shedding and the initial 45-day hard lockdown for its collapse The retrenchment procedure as laid down in the Labour Relations Act (LRA) must be followed properly and in good faith by the employer. Retrenchment is a form of dismissal due to no fault of the employee. The lockdown in essence is affecting the economy of South Africa tremendously. Coronavirus implications on retrenchment and other remedies employers should consider. The Act defines “Operational requirements” as requirements based on the economic, technological, structural or similar needs of the employer. This is becoming quite common these days as new technology is developed, and certainly something the world is going to have to address at some stage. Cookies help us to understand you better. ***, Copyright 2020 Harris Billings Attorneys in Fourways, Notaries & Conveyancers |. Unfortunately the same cannot be said for independent contractors who are not afforded the same protection and relief. Employers, from large corporations to small to medium entrepreneurs and businesses have had no alternative but to implement short time work, reduce salaries, place Employees on unpaid leave as a no work no pay circumstance during the lockdown, or regrettably have had to resort to retrenchment of their Employees as a direct result of the COVID-19 nationwide lockdown, the consequences of which has … Start your free trial today.…, With Brief Analysis on Lexis+, you can build stronger arguments and legal documents by finding additional relevant…, Explore curated resources useful to those representing residential tenants affected by the. One of the implications of the lockdown is that employers, independent contractors and employees have been left “between a rock and a hard place.” Economists have warned that the Coronavirus will have far reaching effects on the South African economy and South Africa will be hard hit with no economic growth and large scale job losses forecast. Section 210 of the Act directs that if any conflict arises between the Act and the provisions of any other law save the Constitution, the provisions of the Act will prevail. What many companies in South Africa are doing during the lockdown is to negotiate amendments to employees’ salaries. Fine Redundancy Notice Template Ideas Resume Ideas namanasa 618800 Letter Termination Employment Sample Termination Service 585680 Our intention is that these retrenchment letter template south africa pictures gallery can be a guidance for you, bring you more references and also present you what you looking for. South African businesses are faced with a huge bill, estimated at R1.4-billion, for storage and demurrage costs accumulated during the 27 days of Alert Level 5 lockdown, as more than… This is dealt with at section 189 of the LRA. South African law, specifically section 189 of the Labour Relations Act, states that employers cannot retrench employees without following due process. ... employers who have compelled their employees to take annual leave during the lockdown period may claim the leave payment from the TERS benefit and then credit the employee concerned with the proportionate entitlement to the paid annual leave. LegalWise offers assistance and information on retrenchment. An independent contractor may perform through others. Directions for employers to pay workers and not retrench them during the lockdown stand withdrawn since 17 May. The recent decision made during March 2020 by the South African Government declaring the Coronavirus pandemic (“Coronavirus”) a National Disaster has left many independent contractors and employees uncertain as to their income and employment security in the work place. As mentioned before, being retrenched isn’t just as simple as your employer giving you notice. Employers are encouraged to seek alternative remedies to termination or retrenchment, which could include remote working arrangements, enforcing annual or special leave, demotion of employees, placing independent contractors or employees on shorter working hours or not to increase salaries. 20 Apr 2020. Written by Lebogang Kgope, Candidate attorney, Gerhold and van Wyk Attorneys and Conveyancers, for LexisNexis South Africa. The contract does not necessarily terminate on death of the independent contractor. Learn more about the retrenchment process in SA here. RELX Group and the RE symbol are trade marks of RELX Intellectual Properties SA, used under license. As you can imagine this is the leading reason for retrenchment during the Lockdown. SHARE THIS ARTICLE; One of the hardest hit sectors of the economy during the national lockdown period, announced to run from midnight on 26 March 2020 to midnight on 16 April 2020, may be domestic workers. Disaster Management Act: Regulations: Alert level 3 during Coronavirus COVID-19 lockdown Alert level 3 We are at an extremely dangerous point in our fight against the pandemic and therefor Cabinet has decided to put the country on an adjusted Level 3 from 29 December 2020 until 15 January 2021, whereafter it will be reviewed. “However, employers and their employees must work together to identify ways to mitigate some of the economic impacts on the business if companies are to continue operating once the lockdown is lifted.” For instance, the fact that a South African employer's holding company in London or elsewhere has decided to restructure internationally to save costs is not of itself sufficient and the South African employer needs to make its own decision and contemplate dismissal for operational reasons prior to commencing the retrenchment process. As a temporary measure, the South African Government has made funds available from the Unemployment Insurance Fund (“the UIF”) for those employees who will not receive salaries, or rather receive a percentage of their salaries during the lockdown period; this is in order to circumvent lay-offs. By Crispin Adriaanse Apr 9, 2020. The South African Judiciary published a list of directives indicating what citizens would pay as fines, ... Legal Rights of Employees Returning to Work during Lockdown Level 3. The harsh reality is that many businesses will have to close their doors or implement vast reaching cost cutting policies as a result of the lockdown. The objective of the contract with an independent contractor is based upon the production of a specified result. We have been banned from buying our favourite foods, going out and enjoying South Africa?s beauty, ... Should we be having sex during lockdown? An independent contractor works only subject to the contract. Many people in South Africa have faced challenges regarding their place of work - be it salary cuts, loss of income, retrenchments or liquidation.The Covid-19 lockdown in SA has brought a steep drop in income for most businesses, resulting in some.. Attorney, Gerhold and van Wyk Attorneys and Conveyancers, Experience integrated research, guidance and news with Lexis+ General Counsel Suite. This article (and the information contained herein) should not be construed as being legal advice, and members of the public are advised to consult their legal practitioner where possible. If the employer acts in good faith and practices procedural fairness within the provisions of Sections 189 and 189A of the LRA, the employee has no grounds for legal recourse against the employer, however, if the dismissal is deemed to be procedurally and / or substantively unfair, the employee will have full protection under the provisions of the LRA. Fair retrenchment process South Africa 2019 dictates that the employer has to issue a notice to the affected parties before engaging in talks with them. SUBJECT: CCMA’S OPERATIONS DURING SOUTH AFRICA’S COVID – 19 LEVEL 4 LOCKDOWN. any person, excluding an independent contractor, who works for another person or for the State and who receives, or is entitled to receive, any remuneration; and. The employer must also prove that he/she has shared with the targeted employees (or their representatives) all documentary and other information pertinent to the retrenchment. 4. Copyright © 2021 LexisNexis. The long lasting prevailing implications of the Coronavirus are at this point unknown. The contract terminates on completion of or production of the specified result. See also: Immune-boosting recipes during Covid-19. Be the first to know when we update the LexisNexis COVID-19 Resource Centre, Lebogang is a candidate attorney at Gerhold and van Wyk Attorneys, based in Bryanston, Johannesburg. ... You do not have to be a South African citizen to claim from the Road Accident Fund for bodily injuries sustained from a motor vehicle accident if the accident occurred within the boundaries of the Republic of South Africa. Who is an employee as defined in the Labour Relations Act? According to Sleep Foundation, this is how much sleep the following age groups need to function properly during the day. *** Please note that this article (and the information contained herein) is to be used to inform members of the public. However, during retrenchment, these benefits can all be lost due to the cutbacks. Job cuts due to South Africa’s lockdown: here’s how employees are selected for retrenchment This index ranks the risk of catching Covid-19 based on your activity Next article The firm is a general practice, offering clients assistance with all legal matters.Lebogang joined Gerhold and van Wyk Attorneys and Conveyancers in 2019, as a candidate attorney, after graduating from the University of the Western Cape, where she was on the Dean’s Merit List and a member of the Golden Key Society.Lebogang’s passions lie in criminal law, labour law and... Read more. any other person who in any manner assists in carrying on or conducting the business of an employer. At such instances, both the employer and the worker need to have a good understanding of everything concerning retrenchment in South Africa and avoid unfairness. The person only provides services to one person. A fair retrenchment process and your legal rights in South Africa. The Retrenchment Process and Your Legal Rights. The time for performance of the independent contractor is specified. Retrenchments during lockdown - Any dismissal, for operational requirements or otherwise, must be in accordance with the Labour Relations Act 66 of 1995, even during the lockdown period. https://www.lexisnexis.co.za/.../labour-law/retrenchments-during-lockdown In the matter of SABC v McKenzie (1999) 20 ILJ 585 (LAC), the Court found that a person is an independent contractor in the following instances: It is of paramount importance to note that independent contractors are explicitly excluded from the definition of an employee under the Labour Relations Act 66 of 1995 (“the LRA”), and they are therefore not afforded any protection offered to employees by the LRA, specifically in instances of termination. The alternative, which is the most nuclear option, is to start the Retrenchment process. [Durban, 22 April 2020] On 9 April 2019, President Cyril Ramaphosa announced a two-week extension of the nationwide lockdown. Many businesses currently find themselves in a situation where they may not be able to fulfil their contractual obligations or pay salaries due to the lockdown put in place by the South African Government. The information contained on this website is aimed at providing members of the public with guidance on the law in South Africa. The President recently announced a nation-wide lockdown in South Africa for 21 days from midnight on Thursday 26 March 2020 until midnight on Thursday 16 April 2020. COVID-19: DOMESTIC WORKERS DURING THE LOCKDOWN IN SOUTH AFRICA. This is to keep themselves afloat in … South Africa: Forced Leave, ... How does retrenchment work during this period? As you are aware, the whole world is confronted by the COVID – 19 pandemic, which has seen many countries across the world, including South Africa, implementing national lockdowns in a bid to contain the virus. 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