Managing retrenchments in tough economic times
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The CCMA is receiving record numbers of retrenchment referrals, thanks to the pandemic
The Commission for Conciliation, Mediation and Arbitration (CCMA) received 28 000 retrenchment cases from May to June 2020 during the lockdown. In August it revealed that it had received 190 large-scale retrenchment referrals and 1 307 small-scale retrenchment referrals in that month alone. While the numbers may be slowly dropping as the lockdown eases, it is important that organisations have a clear understanding of the regulations that come with retrenchment and how to ensure that both employee and business are protected. According to Nicol Myburgh, Head: CRS Technologies HCM Business Unit, there are a lot of considerations that go with retrenchment and a Section 189 dismissal, and it is critical that these are carried out in accordance with the letter of the law.
“It is a very difficult time for business – the lockdown has exacerbated an already fragile economy and many companies are struggling and going into retrenchment procedures,” he explains. “However, retrenchment is complex and there are pitfalls that need to be avoided so as to not end up falling foul of the CCMA and the law.”
