Retrenchment Dismissal – What is it?
A Retrenchment Dismissal takes place when an employer:
1. Terminates the services of an employee because of the Operational Reasons of the company, this could include financial, technological, and other reasons as set out in Section 189 of the Labour Relations Act.
2. Retrenchment Dismissals have strict procedural consultative guidelines that have to be followed, coupled with stringent employer obligations for the disclosure of information, for instance the consideration of alternatives rather than dismissal and/or selection criteria, severance pay proposed and/or right of first refusal, should the position become available within an agreed period etc.
Do I Qualify?
An Employee is qualified to make an application to Dismiss Assist if at the time of the Dismissal he or she:
1. Can prove that you were Dismissed.
2. Can show on the balance of probability that you were Dismissed Unfairly with regard to the Reason for the Dismissal and/or Procedure followed in the Dismissal.
3. Can show that monies are owing to you.
What are the possible outcomes?
1. The presiding Dispute Forum (CCMA, Bargaining Councils, Labour Court), may order up to 12 months compensation (6 months for defective procedure and/or 6 months compensation for defective reasoning.)
2. In some cases even up to 24 months compensation (Automatic Unfair Dismissal.)