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

Labour Market and Human Resource Development for Job Creation Social Plan

8. Support to Small, Micro and Medium Size Enterprises (SMMEs)


There may be people affected by down-scaling operations who are keen to start their own enterprise. In this context, the following options may be considered jointly by workers' representatives and enterprises:


1) Facilitation of links with a Local Business Service Centre or other appropriate support institutions.


2) Delivery of business support services to workers while they are still at work and can explore the options.


3) Assistance and mentoring in feasibility studies and the development of business plans.


4) Inclusion of business and technical training for self-employment in the range of the Department of Labour's services.


5) Provision of time-off so that workers can undergo such training before they leave their workplace.


6) Identification by the company of opportunities to supply it with goods or services. (1)


7) Development of a joint workers' representative and enterprise programme to assist employees to open bank accounts. (2)


8) Engagement with the banks and other lending institutions to explore and facilitate arrangements for workers who want to use all or part of their retrenchment packages as collateral security for business loans.


9) Approaching of Ntsika, the Department of Trade and Industry's (DTI's) SMME support agency, to look at specific provisions for training and support from Local Business Service Centres to retrenchees.



(1) Where these are not already provided internally.
(2) Retrenchees are often unable to open bank accounts without proof of employment.