Page 36 - DRG HR HANDBOOK- Nikita Pillay

RETRENCHMENT

(CONT.)

The Code places an onus on the employer to explore The Code reflects on the minimum severance pay and
alternatives to dismissals and further that the employees points out that an employee may not be entitled to
affected by retrenchment are treated fairly. severance pay if the employee refuses a reasonable
alternative offer of employment. Reasonable alternatives
Both procedural and substantive obligations are placed
according to the code, is Firstly the reasonableness of the
on the employer according to the Code.
offer and factors such as pay, job security and status and
The Code highlights that the purpose of consultation
secondly the employee’s personal circumstances.
is to participate in a joint consensus seeking exercise,
to reach agreement if possible and for the process to TRAINING LAY-OFF SCHEME AS
commence as soon as possible. ALTERNATIVE TO RETRENCHMENT

Further guidelines are that the employer must disclose According to the Department of Labour, the Training
all relevant information, that the topics for consultation Layoff Scheme was introduced and presented to the
provided in S 189(3) should not be a closed list and that public in ‘response to the international economic crisis’ to
the employer should keep an open mind on any viable the way that South Africa should respond to the economic
alternative proposals. challenges.
The guidelines in the Code clarifies that the period of The scheme acknowledged the importance of training
consultation is not prescribed but that the consultation and skills development and introduced it as follows:
process should at least provide for an opportunity
Training and skills development need to be prioritised, quality
to meet and report back to employees, to meet with
improved and the learnership programmes enhanced.
the employer and request, receive and consider
In addition to other measures to avoid retrenchment, one
information.
further option that the parties will consider is training layoffs,
Urgency of the retrenchments should not hinder proper Financed by the National Skills Fund (NSF) and Sector
consultations, however the Code recognises that the Education and Training Authorities (SETAs), for workers
process may become more truncated. whose employers would ordinarily retrench them and
which can be introduced on terms that would keep them
The Code further provides detailed guidelines on the
in employment during the economic downturn, but re-skill
selection of employees that may be retrenched. Fair
them as an investment for the future economic recovery.
selection criteria according to the Code include length
of service, skills and qualifications. The general neutral Any agreement to participate in the scheme will be
selection test however is the ‘last in first out’ (LIFO) facilitated and overseen by the CCMA and ultimately
principle. approved by the Department of Labour.

The Code requires that the offer of future re- Nikita Pillay is employed at DRG as a Human Resource
employment in the event a suitable position Generalist, accompanied by experience in Industrial
36 becomes available be raised as part of the Relations. Her key focus is Labour Law compliance, and
consultation process. providing advice and guidance in this respect.