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Case study on unfair retrenchment

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In Hong Leong Equipment Sdn. However, it is still very common for employers to be ignorant and oblivious about this. Pursuant to your employment contract, the Company hereby gives you two 2 months notice and your last day of work will be on 31st January The above example can be considered a prudent termination letter.
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When a retrenchment is unfair, what happens to the severance already paid?

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Your Guide to Labour Law in South Africa | Labour Guide

Not Reportable. In the matter between:. Heard: 17 August Delivered: 28 September The applicant alleges that she was discriminated against and that the dismissal is automatically unfair in terms of section 1 f of the Labour Relations Act [1] the LRA. The respondent, on the other hand, alleges that the applicant was dismissed for operational reasons.
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Retrenchment Strategy Case Study Solution & Analysis

Final dismissals can never be " to compel the employee to accept " a demand and will not be automatically unfair. This excludes a dismissal that is final and irrevocable. National Union of Metalworkers of South Africa v Fry's Metals Pty Ltd judgment given by SCA 20 April If an employer retrenches employees because they refuse to amend terms and conditions of employment, this will not be an automatically unfair dismissal if the employer intended the dismissals to be final. If the reason for the dismissal of employees during a strike is the participation in a protected strike, and not the employer's operational requirements, then the dismissals will be automatically unfair in terms of s 1 a of the LRA.
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Whether the employer really needed to retrench; what steps he took to avoid retrenchment and whether fair criteria were employed in deciding whom to retrench. The employer must show that there was a greater need to retrench. In terms of Section 1 b of the Labour relations Act, which provide that a dismissal is unfair if the employer fails to prove that the dismissal was effected in accordance with a fair procedure. The procedure for the termination of an employment contract should be conducted in a fair manner. The retrenchment process becomes legitimate only if the employer can show that the reason for dismissal is fair and justified and that a fair procedure was used.
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