Retrenchment isn’t your only solution...

Labour Bulletin | 3 March, 2009 | Hot Topics:

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Inside this issue...

- Have you been paying attention to Sarah-Jane?

- Retrenchment isn’t your only solution...

Dear reader,

Some love the weather extremities of late; others are blown away by them!  I’ve no problem with the wind – even though I’ve just had to replace a car mirror swiped off by heavy rains which fell just seconds after glorious sunshine!  

The Jozi skies aren’t the only thing bursting right now. Take a look at your bulletin for this week...

Do I have to pay an employee who’s deserted?

Question

My employee deserted his job in the middle of the month without notifying the company. He’s now working at another company. Do I have to pay him for the days he actually worked in the month he left?

Answer

Strictly speaking, yes, you would have to pay him.  That's what the law requires.  However, you may make a decision not to on the basis that the amount is, for example, set off against the notice he should have given if he hadn’t breached his employment contract. He may not be inclined to claim payment in these circumstances. However, if he claims payment you would have to pay and then sue him for the failure to give notice.

My Labour Law Editor, Sarah-Jane, has been telling me about an exciting new product she's been working on for the last three months. She says it's guaranteed to reduce your recruitment costs, get rid of your poor performers and save your company some money.

You should’ve already received news of this yesterday. I urge you to take advantage: I daresay you probably won’t even need to ask the above kinds of questions!

Retrenchment isn’t your only solution...

I’m sure you’re probably sick of hearing it but it’s a sad fact that retrenchments seem to be the order of today in our current financial upheaval. But, it’s not as though you have no other option...
Demotion can be an alternative to retrenchment. The labour courts and tribunals, such as the CCMA, also encourage you to be more creative when downsizing your staff quota, and to use retrenchment as a last resort. You must ensure you do things right.

Take note of the following three things:

  1. You cannot demote an employee unilaterally.
  2. Demotion must be fair – you must have both a substantively (recognised reason in law) and have acted procedurally fair (in consultation with the employee).
  3. Provided this is indeed a fair alternative, your employee may choose to be demoted. It’s important, however, that should your employee prefer demotion, he signs a document to that effect stating that by signing the document he confirms he is willingly choosing demotion as an alternative to retrenchment.


Yours sincerely,

Lucelle Buchler
Editor-in-Chief

 
PS: If you have a query regarding payments, deliveries and change of address details, please send an email to gcs@fsp.co.za.
 
 


Editors note

Michelle Govender
Labour Bulletin Editor

The Labour Bulletin team speaks to subscribers every week on landmark labour events and offer valuable and practical information from the Handbook, from questions and answers and from our experts that subscribers can use now to benefit their business.

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