All employers have two goals: to make a profit and be sustainable. Employers should therefore consistently evaluate all factors that can have an influence on the long term success of the business in order to create a cost effective environment enabling the business to stay competitive within the market. Retrenchment is the process where an employee’s position becomes redundant and is therefore dismissed. Retrenchment is a no fault dismissal, as the employee did nothing wrong and dismissal is due to operational requirements. As with all dismissals, the retrenchment process must be both substantively and procedurally fair.
Substantive fairness – for what reasons can the employer retrench employees?
There are three basic reasons that can lead to retrenchment: Read more