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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Building Industry, Cape of Good Hope

Extension to Non-parties of the Main Consolidated Collective Agreement

Chapter Eight: Termination of Employment

41. Retrenchment

 

(1) An employer who proposes retrenchment, shall immediately when retrenchment is considered, provide any of the trade unions of which, to his knowledge, prospective retrenchees may be members,with the following information in writing:
(a) the number of employees who may be retrenched, together with their names, duration of service, Council Holiday Fund numbers, and job categories:
(b) the proposed date of retrenchment;
(c) the reasons for the proposed retrenchment. including all alternatives which the employer has considered and the reasons fer rejecting them;
(d) the proposed selection criteria in respect of retrenchees;
(e) the proposed date for consultations with the trade union(s) and/or employee(s) likely to be affected;
(f) the proposed severance pay; and
(g) the employer's proposals for assistance to retrenchees, including the possibility of reemployment.

 

(2) In the event of an employee likely to be affected by the proposed retrenchment not being a union member, the information mentioned in sub clause (1) above shall be forwarded di18city to that employee(s).

 

(3) The trade union(s) and/or the employee(s) shall provide the employer with a written response to its retrenchment proposals by not later than 3 (three) working days before the proposed date of consultation, which shall include all proposals in respect of the retrenchment.

 

(4) The employer shall attempt to reach consensus with the trade union(s) and/or employee(s) on the retrenchment proposals through consultation: Provided that should consensus not be reached before the date on which the retrenchment is to take place, the employer shall be entitled to implement its retrenchment proposals.

 

(5) The employer shall be entitled to implement its retrenchment proposals at any stage if the trade union(s) and/or employee(s) do not provide written responses or refuse and/or fail to consult with the employer in accordance with this sub clause.

 

(6) An employee who is retrenched in terms of this sub clause shall be entitled to severance payment of a minimum of 1 (one) week of that employee's current remuneration per completed year of continuous service with his employer.