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Ayanda Mbanga

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Where a voluntary separation package is accepted by an employee the parties might agree that the payment will be calculated in the same way to that used for calculating a statutory retrenchment package. That is, the calculation might be based on the number of years of service of the employee.

However, this does not mean that the employee has been retrenched in terms of section 189 of the Labour Relations Act (LRA). In terms of that section, if the employer has operational requirements that might necessitate terminations, the employer is required to consult with the employees who may be affected or with their representatives. Section 189 allows the employer to retrench employees if there is a good enough basis for this and if the consultation process has been conducted properly.

In a section 189 retrenchment the employer does not have to get the agreement of the employees to carry out the retrenchment. Instead,

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Workforce transformation affects all aspects of business and companies must plan for the impact it is having and will continue to have on operations. Nicol Myburgh, Head of the HR Business Unit at CRS Technologies, says the evolving business landscape means companies must start thinking now about the skills they need for the future.

There are currently two major catalysts driving workforce transformation.

The first revolves around modern generations and their preferences for work. Generation X thrives on freedom and responsibility in the workplace. For generation Y, work-life balance is a top priority, along with work satisfaction and developing lasting relationships with people who matter. While Generation Z prefers individual tasks over team-based work activities, they also value physical connection and prefer independence rather than isolation.

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Even though unlimited leave is not a new concept internationally, the news that a local specialist banking group has embraced it has raised a few eyebrows. Nicol Myburgh, Head of the HR Business Unit at CRS Technologies, says this approach necessitates a radical change in thinking from corporate policy-makers.

‘Bottomless’ holidays first appeared in the mid-90s and have steadily spread across US and British firms. Yet South African businesses are still hesitant to adopt this trend, owing to concerns around abuse of such a policy.

“While these concerns are legitimate, organisations that implement an unlimited leave policy can just as easily take it away if it is abused as it is not a minimum requirement dictated by the Basic Conditions of Employment Act (BCEA). On the flip side, it gives employees the freedom to plan their own lives and shows them how much the company trusts and cares about them,” says Myburgh.

However, he cautions that an unlimited leave policy only makes sense if it makes staff more productive. It is not about maintaining a business-as-usual approach and hoping for the best.

“An unlimited leave policy goes against the traditional thinking of an organisation and requires a complete mindset change from management and staff. The best way to manage such a policy is to start with strict measurement criteria and couple it to specific targets, levels of achievement, and outcomes.”

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