Page 37 - DRG HR HANDBOOK- Nikita Pillay

ALTERNATIVES TO

RETRENCHMENT

ection 189 of the Labour Relations Act 66 of conditions of employment (such as a salary reduction or
1995 (LRA), as amended, permits an employer withdrawal of benefits).
S to dismiss employees for operational
Each of the alternatives should be explored in depth.
requirements or reasons.
It is important to note that implementation of these
The phrase ‘operational requirements’ is a broad term
alternative means embarking on a fair process and
referring to economic, technical, structural or similar
procedure, and ensuring relevant documents and
needs of an employer.
agreements are drawn up to support the decisions
Before effecting such dismissals, however, the LRA taken.
places an obligation on employers to engage in a
THE REDUCTION IN SALARY
meaningful joint consensus-seeking process in an
attempt to reach consensus on, inter alia, appropriate th
All bonuses, incentives, 13 cheques should be
measures to avoid and/or minimise the number of
suspended, as well as a % cut in salary.
dismissals.
CHANGES TO TERMS AND CONDITIONS OF
OUR CURRENT ECONOMIC DILEMMA EMPLOYMENT

With the steady decline of the South African economy, This would amount to a lesser term and condition
it has been found that in consultations, that there is an being agreed upon, which will assist the company in
increase on possible retrenchments and restructuring
having a positive financial impact. This could either be a
exercises as employers seek to remain profitable or
temporary measure or permanent.
even to avoid total closure.
TEMPORARY LAY-OFF / UNPAID LEAVE
As employers continue to shed jobs, the number of
unemployed South Africans seems to be growing Employees will not be required to work for a certain
daily. The situation has become so dire in our current period of time, or until it was operationally and financially

economy. feasible to do so.
We understand the seriousness of the situation which
SHORT TIME, PLACING A MORATORIUM
has led to us placing greater focus and emphasis to
ON OVERTIME OR SUNDAY WORK
companies, on alternatives to retrenchment in an attempt
to preserve those jobs that are currently available. A reduction in hours or days worked and receiving a
relative salary to the reduction.
ALTERNATIVES TO EXPLORE
Explore the option of allowing part-time work, as some
Those alternatives, however, are usually either temporary employees may want to continue studying or are
in nature (such as a resort to short-time or temporary looking to gladly accept half-day or part-time
lay-off) or propose changes to existing terms and jobs. 37