Retrenchment is one of the most complex and high-risk areas in South African labour law. Retrenchments (dismissals for operational requirements) are strictly regulated under the Labour Relations Act (LRA), particularly Sections 189 and 189A. Mistakes can result in reinstatement, massive compensation orders, or even rulings of automatically unfair dismissals.
Module 1 – Introduction to Retrenchments in South Africa
• Definition of retrenchment (dismissal for operational requirements).
• Why retrenchments are different from misconduct/incapacity.
• Constitutional and LRA framework.
• Importance of substantive and procedural fairness.
Module 2 – The Legal Framework – Section 189
• Breakdown of Section 189 requirements.
• Consultation, notice, disclosure of information.
• Selection criteria and fairness standards.
• medies for non-compliance.
Module 3 – Large-Scale Retrenchments – Section 189A
• Definition of large-scale retrenchments.
• Special procedures (facilitation, strike/lockout).
• Rights of trade unions and employees.
• Timelines and practical implications.
Module 4 – Substantive Fairness in Retrenchments
• What constitutes a fair operational requirement.
• Economic, technological, and structural needs.
• Case law defining “fair reason”.
• When retrenchment is automatically unfair.
Module 5 – Procedural Fairness in Retrenchments
• Step-by-step retrenchment consultation process.
• Information to be disclosed.
• Role of unions/consultation parties.
• Record-keeping and communication.
Module 6 – Selection Criteria and Alternatives to Retrenchment
• Fair selection criteria (e.g., LIFO, skills, performance).
• Avoiding discrimination in selection.
• Alternatives: redeployment, reduced hours, voluntary severance.
• Case law on unfair selection.
Module 7 – Severance Pay, Notice & Benefits
• BCEA severance pay requirements.
• Notice periods and final payments.
• UIF claims and business obligations.
• Payroll & HR compliance checklist.
Module 8 – Restructuring, Transfers & Business Sales
• Distinction between restructuring and retrenchment.
• Transfers of businesses as going concerns (Section 197).
• Case law on mergers, acquisitions, and outsourcing.
• Practical guidance for employers.
Module 9 – Risks, Remedies & Dispute Resolution
• CCMA and Labour Court remedies.
• Compensation, reinstatement, and penalties.
• Automatically unfair retrenchments.
• Case law illustrating risks.
Module 10 – Best Practices in Retrenchments & Business Structuring
• Planning retrenchments with minimal risk.
• Integrating legal, HR, and financial considerations.
• Communication strategies.
• Templates: retrenchment notice, consultation letter, severance agreement.
Anyone in HR.
