In accordance with the labor code, for a valid implementation of a retrenchment program, the employer must serve written notices on the employees and dole at least thirty (30) days prior to the intended date of retrenchment. Where, on dismissal or retrenchment, an employee is entitled to an amount which refers to the period that the employer is obliged to give the employee notice of such termination of service, in other words, the employer pays the employee an amount equal to the salary the employee would have earned if such employee had worked for the full notice. Responsible retrenchment calls for employers to adopt a longer retrenchment notice period compared to the minimum requirement in the employment act (ea) for normal termination of employment contract, or to pay in lieu of such notice.
I had to give some of my employees notice of retrenchment letters, we as a company wants to downscale but here is my problem i gave all of my. Basic guide to termination employers may decide to waive the notice period, but the worker must still be paid for the notice period basic guide to retrenchment. The definition of retrenchment as interpreted by courts is wide it is so wide that every termination, for any reason whatsoever, except those expressly. What is the difference between retrenchment and redundancy what are they and what do the terms mean in the workplace what is retrenchment retrenchment usually involves a reduction of the workforce due to an economic downturn.
Retrenchment is the process where an employee's position becomes redundant and is therefore dismissed its vital that employers follow the correct procedure. Written notice of the retrenchment should then be given to the organizations works council, nec, or retrenchment board (section 12c (1) (a)) 3 the written notice should state the details of every employee whom the employer wishes to retrench and the reasons for the proposed retrenchment (3. Retrenchment guidelines in singapore (notice, benefits & more) there are limited legal obligations which employers need to stick to, when firing employees in singapore however, the ministry of manpower (mom) and its partners provide guidelines for employers in singapore, to manage and implement retrenchment. A retrenchment is the process by which an employer dismisses employees based on the operational requirements of the business the onus of proving that the retrenchments were done correctly and fairly lies with the employer. Process should be divided into 3 phase - pre- retrenchment, retrenchment and post retrenchment during pre- retrenchment phase , the following steps must be undertaken notification in writing to all employees on company's planned retrenchment exercise detailing the reasons, selection process and procedures.
Retrenchment strategy is a policy change process in organization for cost cutting, to get back to stable level have a look to know all about retrenchment. 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. Notice of retrenchment and the end of the notice period, the notice period shall be extended for ten (10) additional days for any faculty member receiving a retrenchment notice within the extended notice period.
Good practice note managing retrenchment what's inside retrenchment process minimizing risk is an important factor to bear in mind from both a. Letters this form is a sample letter in word format covering the subject matter of the title of the form sample letter for retrenchment letter. Resignation and retrenchment of higher education and the board of regents pursuant to the board policy in effect when the notice is given,.
Retrenchment is the process by which staff is reduced to cull redundant employees and reduce the wage bill the labour relations act 1,. What the law says about retrenchment (ccma) must appoint a facilitator 15 days after a retrenchment notice if it is asked to do so by the employer or most of the retrenched workers if a. If your boss gives you iffy excuses which are not related to performance, or if you didn't get your retrenchment benefits, salary and/or notice pay upon termination, there is a chance you have a case against your employer. An employer is required to provide its employees with a statutory notice in terms of section 189 (3) of the lra which discloses in writing all relevant information relating to the proposed retrenchment prior to commencing the consultation process.
Sample notification letter i (of 2) - psu/mta unit a [letterhead] and i regret sincerely that our current fiscal problems have required this notice. (a) the workman has been given one month's notice in writing indicating the reasons for retrenchment and the period of notice has expired, or the workman has been paid in lieu of such notice, wages for the period of the notice. Retrenchment policy and procedure: page 2 of 7 the company has developed guidelines, which will be tabled for discussion and consultation during the consultation process. Retrenchment strategies what is retrenchment process of a company or organization to reduce the number of people in its employment in order to match or meet operational requirements.