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Does a decision by the employer to lay off his/her employees automatically constitute a termination of his/her employment contract or is just another disguise for termination? For instance we are all aware of the potential of an employer one day being faced with a situation of having to lay off certain employees from being unable to provide ‘work' and further remunerating them. We have even read similar stories making headlines and or cases such as: "Rhein Metal Derel Munitions laying off 210 workers -union" and "MTN laying off 403 employees: report". This is what is often referred to as a ‘retrenchment' or ‘dismissal for operational requirements' according to South Africa's Labour Relations Act (LRA1). Due to the fact that it is in essence still a dismissal, the requirement of "fair labour practices" still applies and requires strict compliance with The LRA...
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Written by: Mikateko Baloyi of Masephule Dinga Inc