• Misconduct
  • Incapacity
  • Operational requirements

…also known as Retrenchment.

These must be based on economic, technological, structural and similar reasons, all a consequential restructuring of the work place.

Structural reasons relate to the redundancy of pro’s consequent to the restructuring of employers and business.


The Act state the employer must consult and therefore  the employer has no option but to consult.


The alternatives that the employer considered before proposing the dismissals:

  • The business can substantially cut costs
  • Generate projects
  • Improve cash flow

… by doing these things one can negate the need for retrenchment.

Then there is a second meeting where things could get heated between the employer and employee.

Section Criteria that are generally accepted to be fair include:

  • Length of service
  • Skill
  • Qualifications

Severance pay equal to at least 1 week’s remuneration for each completed year of continuous service with that employer.

Keep this startling fact in mind when considering retrenchment AND regard retrenchments as the last resort.  WHM will support companies with the ENTIRE retrenchment process. We can eliminate the conflict between the employer and employee.

Feel free to contact us if you would like use us to advise or assist you in the Labour Law sector.