Labour and HR Club Q&A

You don’t have to pay your employees overtime...

Discover the four alternatives you have that can save you thousands on your staff’s salaries this month...

"RETRENCHMENT/ CLOSING BUSINESS"

THANK YOU FOR YOUR RESPONSE.
I JUST WANTED TO CLEAR UP THAT IF WE HAVE TO VACATE THE PREMISES AT THE END OF THE MONTH IE +- 3 WEEKS TIME - THE BUSINESS IS CLOSING DOWN IE CANT PAY RENT - HAPPY TO PAY A SEVERENCE PACKAGE PLUS LEAVE PAY AND DAYS WORKED TO END OF THE MONTH.
WOULD AN EMPLOYEE STILL BE ABLE TO GO TO THE CCMA AND CLAIM UNFAIR DISMISSAL.
BY CLOSING THE BUSINESS AND NOT TRADING ANYMORE IS THAT NOT SUFFICIENT TO EXPLAIN TO 3 WORKERS THE BUSINESS IS CLOSING - THERE ARE NO "ALTERNATIVES " WE HAVE BEEN EVICTED..
BASICALLY COMPANY IS BANKRUPT.
IE WHAT IM ASKING WOULD IT BE FAIR TO PAY ONE WEEKS WAGES PER YEAR WORKED , ANY OUTSTANDING LEAVE PAY , ANY DAYS WORKED TILL THE COMPANY CLOSES DOWN. IE END OF THE MONTH.

Added to
  • CCMA
  • Retrenchments

ROBBO1
 User  ROBBO1 asked at 15 May. 2013

 

2 answers

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Abcorlaw
 User Abcorlaw answered to question to 16 May. 2013
Dear Robbo,

Like I said, the process of retrenchment is clearly dictated in the LRA Section 189, further, yes your reasons are good enough provided you follow Section 189. Yes, they can still proceed with a CCMA matter.

On the second case: eviction, if they remain on the premises and refuse to move out the owner of the building must follow the eviction process (PIE).

Good luck.

Kind regards

Charles Kinnear
B.Iuris, LLB, LLM (Labour Law), PhD – ILO, N/Dip. HRM & Training
Labour Relations and Litigation Practitioner
Human Resource, Industrial Relations, Recruitment and Training Advisory
Mobile: 072 313 8344
Fax no: 086 537 8007
E-mail: charleskinnear@abcorlawinc.co.za
Website: www.abcorlawinc.co.za


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Wouter Van Heerden
 Expert Wouter Van Heerden answered to question to 17 May. 2013
Employees are still entitled to go to the ccma and refer the matter if the process and reason for termination is disputed. Employees are entitled to notice / notice pay as per the BCEA + leave due at date of termination + Severance pay 1 week per completed year of service.



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