In a redundancy situation where the company decides that a reduction of cost is necessary, the company may choose to terminate certain employees’ contract of service on the basis that there is a surplus of labour. The process in which such termination is carried out is known as a “retrenchment”. While companies generally have the prerogative to manage and organize their businesses, the company still owes the employees a duty to ensure that the employees are not unfairly dismissed.
There is a set of rules and requirements to comply with in the event a retrenchment exercise is carried out. Any flaws in the retrenchment process may result in an unfair dismissal suit being initiated by the employee. In the Industrial Court, the company will have to prove that the circumstances rendered the employees’ functions and job roles to be of surplus and therefore redundant. The company will also have to prove to the Industrial Court that the retrenchment exercise was carried out in good faith.
Our services and support include, but is not limited to the following areas:
- Advising on the employees’ redundancy
- Advising on the principle of “Last In, First Out” (LIFO)
- Advising on the different rights of foreign employees.
- Advising on the compliance of the Code of Conduct for Industrial Harmony.
- Advising on the retrenchment benefits.
- Assisting with statutory forms
- Advising on the voluntary separation scheme.
- Advising on the employees’ position and rights in the event of merger & acquisition (if any).
- Representing the employer or employee in the Industrial Court.
Our Employment Department offers consultation on a retainer basis to businesses and employers. Our hassle-free retainer gives you access to our qualified lawyers by email, phone or in meetings at our office.READ MORE →