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


National Bargaining Council for the Clothing Manufacturing Industry

Main Collective Agreement

Part C : Provisions for the KwaZulu-Natal Region

36. Retrenchment



(1) For the purposes of this clause "retrenchment" shall mean the dismissal of an employee for reasons based on the employer's operational requirements.


(2) The employer shall endeavour to avoid retrenchments by transferring workers to other departments, by training or retraining, by limiting and/or eliminating overtime, working short-time, allowing voluntary retirement and such other suitable alternatives.


(3)        The employer shall furnish Council and the Union with the following information:

(a) The reasons for the proposed retrenchments;
(b) approximate number of employees to be retrenched and the job categories in which they are employed;
(c) the proposed method for selecting which employees to dismiss;
(d) the date when the dismissals are likely to take effect;
(e) the severance pay proposed.


(4) The employer shall consult with the Union on the need and extent of the proposed retrenchment and the fairness of selection of employees to be retrenched:
(a) An employer must pay an employee who is retrenched severance pay equal to one weeks wage for each completed year of continuous service with that employer, unless the employer has been exempted from the provisions of subclause.
(b) An employee who unreasonably refused to accept the employer's offer of alternative employment with that employer or any other employer is not entitled to severance pay in terms of paragraph (a) above.



(a) The employer shall give the Council and the Union at least 21 days written notice provided that the Union and the employer may reduce the period of notice by mutual agreement which agreement shall not be unreasonably withheld.
(b) The notice shall not run concurrently with the Annual Shutdown period of the employer's establishment.


(6) Where an employer has retrenched employees he shall, if he subsequently engages additional employees, as far as is possible, give preference to the reengagement of those employees who were retrenched from his establishment within the previous 6 (six) months.