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Section 189(1) of the LRA provides that, before retrenching, employers must consult any person whom the employer is required to consult in terms of any collective agreement that may be in force. If there is no collective agreement, meetings should be held with all employees that could be affected by the proposed retrenchment.
Section 189 states the following: “(1) When an employer contemplates dismissing one or more employees for reasons based on the employer’s operational requirements, the employer must consult— (a) any person whom the employer is required to consult in terms of a collective agreement;
In keeping with a premise of the Act, section 189(1) envisages that the collectivities of management and labour represented by trade unions should engage in an appropriate process of consultation, save where the affected employees are not so represented.
Retrenchment and transfer of businesses - Pdf. 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. To view an extract of the content in this document, click here.
The new approach, embodied in section 189A, will only apply to employers with 50 or more employees and only if the number of contemRiated dismissals during a twelve-month period exceeds certain thresholds. 1 The existing section 189. as amended, will continue to apply to all other employers and to retrenchments by.
The point of departure in relation to the duty to consult is the provisions of section 189(1) which obligates an employer to consult once it contemplates dismissing one or more employees for reasons based on its operational requirements.
The most common element that lands employers in the Labour Court seems to be the reason for retrenchments. Procedurally, retrenchments are not a problem – the procedure is clearly laid down step-by-step in section 189 and 189A of the Labour Relations Act.
