Dear Reader

The year is in full swing and most people I talk to seem to be busy, which is a good thing in the current uncertain economic times. Remember, however, if you’re struggling and need to retrench employees you must do it properly so you don’t end up spending everything you’ve saved cutting jobs on the legal costs of defending your case.

Many employers launch straight into the procedure required for retrenchment without first properly thinking through the business case for doing so. Always start with a fair and valid reason for why you want to retrench.

Think about the following before you start a retrenchment process:

• What do you want to achieve by retrenching?
• What is the best plan to get there?
• Does your plan tie in with what you want to achieve?
• Do you have the facts and figures to back you up?
• Are your facts and figures accurate and can you substantiate them if they’re queried?
• How many employees do you envisage retrenching? Does this make it a large-scale retrenchment? (If it does, consider the implications and timeframes involved).
• How will you select the employees for retrenchment and is this in line with your strategy?
• When do you want to implement retrenchments? Does this timing make business sense? Are you giving yourself enough time to consult properly?
• What do you propose paying as a retrenchment package? Have you worked out how much this would cost you?
• What other assistance can you offer retrenched employees?

Once you’ve carefully considered all these questions you may decide not to retrench! If you’re sure it makes business sense to do so, you’re ready to start the process. Beginning with consultation...
If you're a subscriber have a look at chapter R03 in your Labour Law Handbook to find out exactly what to do.

Until next month...

Susan Stelzner

Editor-in-chief