Fair Retrenchment in Small to Medium-sized Firms
03 August 2026, Hlubi Hadebe
Retrenchment is an unfortunate reality for many South
African businesses facing financial pressure, changes in market conditions,
restructuring, or mergers.... Because retrenchment is regarded as a dismissal
based on operational requirements, employers must follow a fair and lawful
process before making a final decision. Employees should also understand their
rights, including the right to meaningful consultation, fair selection criteria,
and the payments due to them on termination.