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Retrenchment and transfer of businesses
A publication detailing the aspects of retrenchment and the transfer of business and the requirements of the LRA in terms of section 189 and 197.
Employment conditions
Sub Category
Transfer of business
Document Type
Retrenchment and transfer of businesses PUB.pdf
Publish Date
R 285.00
Johanette Rheeder
Document Format

63 pages in document, you are previewing the first 2 pages below:

SECTION 1: RETRENCHMENT IN TERMS OF SECTION 189 OF THE LABOUR RELATIONS ACT 66 OF 1995 1. Introduction 2. The Code of Good Practice on Dismissals based on Operational requirements. 3. ETSOS: The substantive requirement 3.1 The real reasons for retrenchment 3.2 The synergy between substantive and procedural fairness 3.3 Changes to terms and conditions of employment and retrenchment 3.4 Economic downfall as a requirement 4. Procedural Requirements 4.1 The consulting parties 4.2 The invitation notice 4.3 The consultation process – meaningful joint consensus seeking process in an attempt to reach consensus. 4.4 Relationship between outsourcing and retrenchment 4.5 Deadlock in consultations 4.6 Appropriate measures to avoid dismissals. 4.7 Appropriate measures to minimise the number of dismissals to change the timing of the dismissals and to mitigate the adverse effects of the dismissals. 4.8 Suitable alternative employment 4.9 The method for selecting the employees to be dismissed. 4.10 The severance package. 5. Disclosure of information 6. Time frame for consultations 7. Remedies and jurisdiction of the Labour Court and the CCMA. 8. Re-employment after Dismissal http://www.laboursmarttrainin COP Y RIGHT RESERVED 3 CONTENTS Continued SECTION 2: RETRENCHMENT IN TERMS OF SECTION 189A OF THE LABOUR RELATIONS ACT 66 OF 1995 1. When does the section apply? 2. Procedure in terms of section 189A 3. The role of the Commission 4. If a facilitator has been appointed (section 189A (7)): 5. If a facilitator is not appointed (section 189A (8)): 6. Strikes for the purpose of section 189A. 7. How it works 8. General terms 9. In summary, employers should take note of the following pointers and pitfalls: SECTION 3: TRANSFER OF A BUSINESS AS A GOING CONCERN SECTION 197 1. Introduction 2. When is it a transfer? 3. What is transferred? 4. The section 197(6) agreement 5. What can the negotiating parties agree on, in terms of section 197(6)? 6. If there is no section 197(6) agreement? 7. Obligations of the old and new employer 8. Liability 9. Automatic unfair dismissal and transfer of business. 10. Section 197A 11. Section 197B Disclosure of information concerning insolvency