retrenchment during lockdown south africa

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. 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. 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. As mentioned before, being retrenched isn’t just as simple as your employer giving you notice. The alternative, which is the most nuclear option, is to start the Retrenchment process. Even prior to the lockdown, it was foreseen that the economic impact would be severe and that many jobs would be lost. The objective of the contract with an independent contractor is based upon the production of a specified result. Whilst measures have been implemented by the State to assist employers in retaining staff, if an employer contemplates dismissing one or more of its employees for reasons based on operational requirements, it must comply with Section 189 of the Act. A dismissal must be for a fair reason and effected in accordance with a fair procedure. SUBJECT: CCMA’S OPERATIONS DURING SOUTH AFRICA’S COVID – 19 LEVEL 4 LOCKDOWN. Retrenchment is a form of dismissal due to no fault of the employee. Any dismissal, for operational requirements or otherwise, must be in accordance with the Act, even during the lockdown period. Coronavirus implications on retrenchment and other remedies employers should consider. Unfortunately the same cannot be said for independent contractors who are not afforded the same protection and relief. The time for performance of the independent contractor is specified. https://www.lexisnexis.co.za/.../labour-law/retrenchments-during-lockdown The coronavirus pandemic and the extended lockdown has had a clear impact on South African companies, with various government bodies reporting an increase in retrenchment and … The information contained on this website is aimed at providing members of the public with guidance on the law in South Africa. 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. Browse on or click to. In addressing the nation, President Ramaphosa stated: “Our country finds itself confronted not only by a virus that has infected more than a quarter of a million people across the globe, but also by the prospects of a very deep economic recession that will cause businesses to close and many people to lose their jobs”. 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. 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. 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. 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.. Since the lockdown has commenced, many businesses have found themselves unable to meet their monthly obligations and are considering a reduction of staff. Should you require any assistance in the retrenchment process as a result of the Coronavirus, we recommend that you contact one of our experienced attorneys who will be able to assist you through the process. The retrenchment procedure as laid down in the Labour Relations Act (LRA) must be followed properly and in good faith by the employer. 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. Who is an employee as defined in the Labour Relations Act? As you can imagine this is the leading reason for retrenchment during the Lockdown. any other person who in any manner assists in carrying on or conducting the business of an employer. ... 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. ***, Copyright 2020 Harris Billings Attorneys in Fourways, Notaries & Conveyancers |. Directions for employers to pay workers and not retrench them during the lockdown stand withdrawn since 17 May. The long lasting prevailing implications of the Coronavirus are at this point unknown. South African law, specifically section 189 of the Labour Relations Act, states that employers cannot retrench employees without following due process. 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. Written by Lebogang Kgope, Candidate attorney, Gerhold and van Wyk Attorneys and Conveyancers, for LexisNexis South Africa. 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. [Durban, 22 April 2020] On 9 April 2019, President Cyril Ramaphosa announced a two-week extension of the nationwide lockdown. Technological needs: Occurs where new technology makes a position in the company redundant. According to new Consumer Pulse research from GfK South Africa into the behaviours and sentiment of online consumers during the last weeks of the Level 4 lockdown, “Unemployment and the economy have displaced COVID-19 as the top concerns for South African consumers as they personally experience the economic squeeze after weeks of 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 Act defines “Operational requirements” as requirements based on the economic, technological, structural or similar needs of the employer. 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. Section 200A of the LRA provides that, unless proven otherwise and irrespective of the wording or form of the contract concluded; a person is presumed to be an employee if any one of the following circumstances exists in the employer / employee relationship: Retrenchment occurs when the employer dismisses one or more of its employees for reasons based on the employer’s operational requirements. Copyright © 2021 LexisNexis. 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). Cookies help us to understand you better. 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 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. As mentioned above, independent contractors are not afforded the same protection as employees by the LRA with the result that should the employer need to terminate an independent contractor’s contract, the employer will have to terminate the contract in accordance with the termination clause of the particular contract. 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. 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. This is to keep themselves afloat in … The contract does not necessarily terminate on death of the independent contractor. Please share your thought with us and our readers […] All rights reserved. For this reason, employers are faced with no other option but either to have the employees take unpaid leave, if the employees are able to afford it. Retrenchment is a form of dismissal due to no fault of the employee. We have been banned from buying our favourite foods, going out and enjoying South Africa?s beauty, ... Should we be having sex during lockdown? If the employee is successful at the CCMA, the employee may be entitled to re-instatement, back pay, re-employment, compensation or any other remedy which the CCMA or applicable bargaining council may deem fit. This is dealt with at section 189 of the LRA. Rest and sleep See to it that you get enough sleep. Retrenchments During the LockdownSection 185 of the Labour Relations Act 66 of 1995 (“The Act”) provides that no employee may be unfairly dismissed. 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. 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. *** Please note that this article (and the information contained herein) is to be used to inform members of the public. According to Sleep Foundation, this is how much sleep the following age groups need to function properly during the day. 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… Written by Robin Gerhold, Partner, Gerhold and van Wyk Attorneys and Conveyancers, for LexisNexis South Africa. Lockdown retrenchment a blessing in disguise, says CT entrepreneur. Attorney, Gerhold and van Wyk Attorneys and Conveyancers, Experience integrated research, guidance and news with Lexis+ General Counsel Suite. https://www.hbattorneys.co.za/retrenchment-during-the-coronavirus-lockdown 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. Nationwide LockdownOn 23 March 2020, President Cyril Ramaphosa announced a nationwide lockdown. RELX Group and the RE symbol are trade marks of RELX Intellectual Properties SA, used under license. The Retrenchment Process and Your Legal Rights. The person only provides services to one person. The manner in which the person works or his/her hours of work is/are subject to the direction or control of another person; The person forms part of the organisation; The person has worked for the other person for an average of at least 40 hours per month for the last three months; The person is economically dependent on the other person; The person is provided with tools of trade by the other person; and. See also: Immune-boosting recipes during Covid-19. 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 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. A fair retrenchment process and your legal rights in South Africa. Read: How To Apply for Police Service Employment in South Africa. 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 Harris Billings Incorporated will not be held liable for any damages suffered as a result of reliance on this article (or the information contained herein). 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. These consulting parties include those mentioned in the collective agreement as well as the registered trade union … An independent contractor works only subject to the contract. 20 Apr 2020. 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 4. 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. 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. COVID-19: DOMESTIC WORKERS DURING THE LOCKDOWN IN SOUTH AFRICA. Coronavirus implications on retrenchment and other remedies employers should consider accordance with fair. Employment in South Africa to start the retrenchment process in SA here without. 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