Section 189(1) of the LRA provides that, before retrenching, employers must consult any person whom the employer is required to consult in terms of any collective agreement that may be in force. Date of dismissal 191. threshold as prescribed by the Minister in terms of section 6(3) of the Basic Conditions of Employment Act, and the majority of protections only apply after an employment period of 3 months. to establish the Labour Court and Labour Appeal Court as superior courts, with exclusive jurisdiction to decide matters arising from the Act; to provide for a simplified procedure for the registration of trade unions and employers' organisations, and to provide for their regulation to ensure democratic practices and proper financial control; Applicability: This section applies to every company including banking and insurance company Legal reference Labour Relations Act, 1995: Code of Good Practice on Dismissal 2 (4) In cases where the dismissal is not automatically unfair, the employer must show that the reason for dismissal is a reason related to the employee's conduct or capacity, or is based on the operational requirements of the business. 189. This section – which sets out the guidelines for retrenchment procedures – currently limits the parties who must be consulted to: People who must be consulted with in terms of a collective agreement, Why you are intending to proceed with retrenchments. Contact Us | (+27 (0)21 801 5240 | solutions@adriaansattorneys.com. These sections are taken from the Trade Union and Labour Relations (Consolidation) Act 1992 and relate to disclosure of information. Changing the timing of retrenchments, and. EXTRACTS FROM THE LABOUR RELATIONS ACT - Unfair Dismissals. Read with section 189 which governs operational requirements dismissals in general, an employer is obliged to consult with appropriate bargaining agents and to engage in a meaningful joint consensus-seeking process aimed to reach consensus on appropriate measures to avoid, minimise, change the timing and mitigate the adverse effects of the dismissal as well as the … The possibility of avoiding the dismissal i.e. 2, - a) the employer contemplates dismissing by reason of the employer’s operational This article is a general information sheet and should not be used or relied on as legal or other professional advice. NOTICE OF PROPOSED RETRENCHMENT IN TERMS OF SCTION 189(3) OF THE LABOUR RELATIONS ACT OF 1995 This letter serves to give you notice in terms of section 189(3) of the Labour Relations Act (LRA) of 1995 of a proposal to retrench you and, in this connection to invite you to engage with us in consultation with a view to reaching consensus on: Dismissal related to operational requirements – Section 189 of the Labour Relation Act View Larger Image In the past years we have seen employees embarking on nationwide strikes, which meant that there was no operation taking place in most companies due to the nationwide strikes during that period. The current retrenchment procedure, as outlined by the Department of Labour, starts off with a consultation process. Section 189: Dismissals based on operational requirements. The LRA requires that consultation must take place when the employer contemplates retrenchment. This morning, it was reported in the media that ProductivitySA has called for Section 189 of the Labour Relations Act (LRA) to be amended. These are defined as requirements based on economic, technological, structural or similar needs of the employer. Section 189A of the LRA stipulates the procedure for large scale retrenchments. The Constitution of the Republic of South Africa requires fairness to be the compass of these processes. 66 of 1995 ACT To change the law governing labour relations and, for that purpose- to give effect to section 23 of the Constitution; Unfair Dismissal. 6 of 2014 Inserts s. 198 (4F) in Act No. Why you’ve decided to follow a specific retrenchment method. Section 189 of the Labour Relations Act (“LRA”) permits employers to dismiss employees for operational requirements. Section 189 and Section 189 A of the LRA, should however be read together. The LRA provides for the disclosure of certain information by the employer on matters relevant to the consultation. If there is no collective agreement, meetings should be held with all employees that could be affected by the retrenchment. The Labour Relations Act (LRA) places additional obligations on employers involved in large scale retrenchments. Employees are entitled to receive severance pay only if they are retrenched for operational requirements. 1.1) WHEN MUST CONSULTATION COMMENCE The Labour Relations Act requires that consultation must take place when the employer contemplates retrenchment. The requirements regarding severance pay are set out in section 41 of the Basic Conditions of Employment Act (“BCEA”). This section – which sets out the guidelines for retrenchment procedures – currently limits the parties who must be consulted to: Productivity SA’s CEO, Mothunye Mothiba, has called for the LRA to be amended to insert a clause requiring all businesses to report their retrenchment plans to the Department of Labour before any action is taken. Remedies for unfair dismissal and unfair labour practice 194. - Amended by Labour Relations Amendment Act 6 fo 2014 from 1 Jan 2015 - Amended by General Intelligence Laws Amendment Act 11 of 2013 from 29 Jul 2013: S 2 - Amended by Superior Courts Act 10 of 2013 from 23 Aug 2013: S 151, 154, 170 The employee themselves or their representatives. … Follow this link to register. 185. In terms of section 188 of the Labour Relations Act, dismissal can be fairly justified on three general ground: the conduct of the employee, the capacity of the employee and the operational requirements of the employer. Section 189 of the LRA requires all consulting parties to reach consensus on the various matters (specified below). 17, G. 25003]), ... To change the law governing labour relations and, for that purpose— to give effect to section 23 of the Constitution; [Long title am by s 43 of Act 6 of 2014.] Dismissals based on operational requirements 189A.Dismissals based on operational requirements by employers with more than 50 employees 190. Section 183 - … The employer must consult with the above-mentioned individuals in writing. Section 189 of the Labour Relations Act is applicable and prescribes a joint consensus seeking process in an attempt to reach consensus on appropriate measures (section 189 (2))- … Disputes about unfair dismissals and unfair labour practices 192. Other items that you need to discuss during the preliminary consultation process are, for example, the possibility of: It is extremely important that you, as the employer, give your employees written notice about the following if you are intending to carry out retrenchments: If you want to keep up to date with the latest HR, IR and labour law news, be sure to subscribe to the Global Business Newsletter. As is widely known, during March 2020, the president declared a state of disaster arising from the COVID-19 pandemic. Date of dismissal 191. The employer sometimes has no choice but to retrench some of its employees in order for its business to continue. How many people you employ and how many you are intending to retrench. Disputes about unfair dismissals 192. As a point of departure, the LRA requires that employers must consult with any person with whom it is required to consult in terms of a collective agreement (section 189(1)(a)). The employer must allow the affected employee the opportunity to make representations in relation to the proposed retrenchment, oral or written. Meaning of dismissal 187. An employer who employs 50 or less employees are subject to the process set out in section 189 of the LRA, which sets out the procedural and substantive obligations placed on the employer to maintain a fair retrenchment process. alternatives to dismissal; Appropriate measures to minimize the dismissals; Measures to change the timing of the dismissals; Appropriate measures to mitigate the effects of retrenchment; The method for selecting the employees to be dismissed; and, Alternatives to dismissal that were considered and the reasons why they were rejected, The number of employees likely to be affected, Assistance that the employer will be offering, Any outstanding leave due (up to date of dismissal); and. Retrenchments in terms of Sections 189 of the Labour Relations Act 06 February 2019 Often employers find themselves in difficult financial positions. Register of Contracts or Arrangements in which Directors are interested . Act 68 of 2002 (GoN 189, G. 24356, c.i.o 28 February 2003 [Proc. The employer must issue notices to the employees, who have been selected to be retrenched, after the consultation process has been completed. Differences in pay do not always amount to unfair discrimination, Suspension prior to a disciplinary enquiry is not always punitive, Dress code is a potential contentious issue, When a dismissal related to unprotected strikes is fair, Fixed-term contract renewals for managers. Section 189(a) of the Labour Relations Act - Celebrity gossip and the latest news , South Africas top best scandals here on Sa411 from Mzansi actors , Political figures , Celebs , Radio presenter and Sport Stars. Section 41 of the BCEA provides that an employer must pay an employee who has been dismissed for operational requirements “severance pay equal to at least one week’s remuneration for each completed year of service with that employer”. Section 189 of the Labour Relations Act requires all consulting parties to reach consensus on the various matters specified. How many employees you’ve retrenched in the last 12 months, What assistance you intend to give the employees you retrench, as well as. The consultation is a process and not a once-off meeting. If considerations, other than those that are listed, are relevant to the proposed dismissal or the development of alternative proposals, they should be disclosed to the consulting party. Section 189 A applies to all employers with more than 50 employees if. The notice will also serve as an invitation to consult between the parties. CONTENTS: Chapter VIII . APPLICATION OF SECTION 189 AND SECTION 189A OF THE LABOUR RELATIONS ACT 66 OF 1995 AS AMENDED by MAWETHU SIYABULELA RUNE Submitted in partial fulfilment of the requirements for the degree of MAGISTER LEGUM in the Faculty of Law at the Nelson Mandela Metropolitan University Supervisor: Doctor Pieter C Wagener March 2010 The employee works for - Section 189(A) of the Labour Relations Act Wednesday | 09 January | 2019 Due to the SABC’s and certain mining companies’ announcements in 2018 that extensive retrenchment processes would be rolled out, this article aims at discussing retrenchments on a major scale. Dismissals based on operational requirements 190. The first thing that must be discussed is how to avoid a retrenchment. Section 189(1) of the LRA provides for a hierarchy in relation to consultation for purposes of restructuring exercises, known as the cascade principle. In order for its business to continue your legal adviser for specific and detailed advice OE... 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