Retrenchment
No-fault dismissal based on an employer's operational requirements, such as economic, structural, technological, or similar business needs.
Definition
Retrenchment connects the business reason, consultation process, alternatives to dismissal, selection criteria, severance pay, benefits, and the forum for any dispute. It should be treated as document-heavy from the first notice.
Key takeaways
No-fault dismissal based on an employer's operational requirements, such as economic, structural, technological, or similar business needs.
Labour Law
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Related legal problems
This glossary provides general information only and does not constitute legal advice.
Common situations
Retrenchment notice
Section 189 consultation
Severance pay
Related resources
Resources and guides
CCMA Checklist
Preparation checklist for CCMA referral, conciliation, and arbitration steps.
Labour LawChecklistRetrenchment Checklist
Checklist for gathering consultation, selection criteria, severance, and retrenchment process documents.
Labour LawClient Document PackRetrenchment Consultation Document Pack
Retrenchment Consultation Document Pack: prepare Section 189 notice, Operational-requirements reasons, Organogram and identify missing records before legal advice.
Labour LawPreparation PackEmployment Dispute Pack
Employment Dispute Pack for organising facts, dates, documents, and next steps before seeking labour law help.
Labour LawFAQs
Retrenchment FAQs
What does Retrenchment mean?
No-fault dismissal based on an employer's operational requirements, such as economic, structural, technological, or similar business needs.
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