Do you need to report retrenchments to the government. Telkom kenya tkl started retrenching in may 2006 in preparation for privatization. Retrenchment might be caused by a number of factors. To ensure the application of consistent, fair and legal staff redundancy procedures and retrenchment practices and the fair and equal treatment of all employees, taking account of the duty and right of the employer to balance staffing levels, business demands and changing economic, labour and. Refer the case to a necessary authority within 30 days after the retrenchment. A phenomenological study into the experiences of retrenchment. The 60 day period in any large scale retrenchment commences once a notice in terms of s1893 has been issued. This occurs when the right procedure is not followed. After having an income protection policy in place for six months, you qualify for the retrenchment benefit, and you wont be covered for any retrenchment process that begins within these six months. These are defined as requirements based on economic, technological, structural or similar needs of the employer.
The client will implement a procedure which provides individuals with the right to challenge their selection. This paper examines the effect of retrenchment on organizational performance based on a study conducted at the telkom kenya, eldoret branch over a 5 year period. The retrenchment process affects a variety of stakeholders. The employer must give fair reasons for making the decision to retrench and follow a fair procedure when making such a decision. Where retrenchment plans are required by law clients should ensure that the retrenchment plan is in line with regulatory requirements. Pdf rate of retrenchments is directly proportional to unemployment, which. Due to this and because the employer did not follow the proper retrenchment procedure the court. Many units are scrapped as banks combine, either because they no longer fit into the strategic. With a view to ascertaining the impact of retrenchment policies implicit in the structural. Rationalisation to shed surplus employees resulting from buyouts or mergers. The law concerning retrenchment south africa clearly states the way forward for employees to deal with employers who do not follow the appropriate policy.
A surplus of employees following a merger due to employees from. Introduction retrenchment is the process by which staff is reduced to cull redundant employees and reduce the wage bill. When do we start calculating the 60 day consultation period. What you need to know about the law on retrenchment of employees. By end of 2010, a total of 501 employees had been retrenched at eldoret telkom. If you face retrenchment, you need to know what the law expects of your employer to ensure that the process is fair. Retrenchment laws do not favour employers skills portal.
944 638 830 1223 142 1401 592 898 911 487 448 825 270 497 1188 1175 557 1134 1159 728 401 276 1349 521 371 905 892 1381 804 1067 1022 335 1097 1046 1139 191 124 1458 553 1317 407 1291