RETRENCHMENTS - Frequently asked questions answered | Section 189 & Section 189A of the LRA

In this video I address frequently asked questions about a retrenchment.
If your question wasn't answered in this video - please comment it and I will answer it in future videos.
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How do you know if your retrenchment is Section 189 or Section 189A (large scale): fourieemploymentrelations.com...
VIDEO - What employees are paid in a retrenchment:
• RETRENCHMENT - What is...
VIDEO - How to draft a Section 189(3) letter:
• How to draft a Section...
Section 189(3) Notice of Contemplated Retrenchment template:
fourieemploymentrelations.com...
Mutual Termination Agreement Template: fourieemploymentrelations.com...
CCMA Rules: www.ccma.org.za/wp-content/up...
More Employment Relations Videos on my channel: / @carmenfourie5346
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Employment Relations Download Website: fourieemploymentrelations.com...
Employment Relations Blog: fourieemploymentrelations.com/
Employment Relations Website: employmentrelations.co.za/
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Credentials:
Employment Relations practitioner for over 6 years, assisted over 500 clients in various industries across South Africa, over 2500 disciplinary hearings chaired, numerous CCMA cases, retrenchments, restructuring, contracts of employment, incapacity investigations, grievances facilitated, and negotiations.
I am also the Director of Fourie Employment Relations (Pty) Ltd and, lectured and mentored the subject of labour relations at the University of Stellenbosch.
MCom Cum Laude (Industrial Psychology)
Thesis: The behaviours that make small business owners successful and what success means to them (the development of a small business owner competency model)
BCom Hons Cum Laude (Industrial Psychology)
BCom Management Science (Entrepreneurship & Industrial Psychology)
Numerous courses completed on Nonviolent Communication
Disclaimer: This video is for educational purposes only and are not professional advise.

[@angelocapes5956]

Thank you for the great content. Glad to see you back and uploading great content.

[@carmenfourie5346]

Thanks for letting me know and watching!

[@tanyavanrooyen822]

Thank you for the informative content, it is much appreciated. Please could you kindly advise in regards to the selection criteria, are the Employer bound to the reasons given in the LRA e.g. LIFO, length of service, skills and qualifications or a combination of these. What if the Company is contemplating retrenchments due to financial grounds as the Company is struggling to keep employees on the payroll and they want to keep employees earning the least amount of salary as this is all the Company can afford.

[@carmenfourie5346]

Thanks for your query - employers are not bound to the selection criteria in the LRA, but to deviate from this - the onus is higher on an employer to prove that the criteria was fair and objective. Using salary to my mind meets the requirement for objective, but I'd need more context to say for certain it meets the criteria of "fair". My suggestion would be to, in the consultation process, include the option for employees to take a salary reduction. Therefore, I would recommend a criteria like LIFO, but asking employees to take a salary reduction. Hope this helps.

[@nataniapio3883]

Hi Carmen! Thanks for the informative video. I have a question from an employee perspective: for the consultation process, can an employer choose to conduct the "consultation" via email (written) and not face to face or via video call?

[@carmenfourie5346]

Technically the legislation does not say that the consultation needs to be done in person (face to face or video call), but it was written with this type of consultation in mind. That being said, I have seen many consultation processes done only via email/writing that have been accepted as fair by the CCMA. The main test of fairness will be whether there was an attempt to conduct a meaningful consultation process.

[@tinashemanzini7337]

Thank you great content. My question would be, can an employer subject employees to a section 189A process twice in a space of 6 months

[@carmenfourie5346]

Yes, an employer can do the Section 189/Section 189A process more than once in a 6 month time period. This usually happens if the initial cost reduction didn't work or if there were major unforeseen changes that impact on the business.

[@seimela]

How much you charge for online consultation

[@carmenfourie5346]

Please send me an email - my consultation rates are subject to change and therefore I don't want to provide that information here.
My email: [e-mail]