Back to: Introduction to the Labour Relations Act (LRA)
8.3 Special Cases
The Labour Relations Act outlines specific provisions for dismissals based on operational requirements and the transfer of contracts of employment.
Dismissals based on operational requirements, also known as retrenchments, occur when an employer needs to reduce the workforce due to economic, technological, structural, or similar reasons. These dismissals must be procedurally and substantively fair, and the employer must follow a specific process outlined in the Act.
The process for retrenchments includes consultation with the affected employees or their representatives, consideration of alternatives to dismissal, and selection criteria that are fair and objective. The employer must also provide severance pay to employees who are retrenched, calculated at a minimum of one week’s remuneration for each completed year of continuous service.
The transfer of a business as a going concern involves the transfer of employees from one employer to another. The Labour Relations Act provides protections for employees in such cases, ensuring that their contracts of employment are transferred automatically and that their terms and conditions of employment are maintained.
Employees cannot be dismissed solely because of the transfer of the business. Any dismissals that occur must be for a fair reason and follow the appropriate procedures. This ensures that employees’ rights are protected during business transfers and that their employment is not unjustly terminated.
Key Takeaways:
- The Labour Relations Act provides comprehensive protections against unfair dismissal, ensuring that dismissals are for fair reasons and follow fair procedures.
- Automatically unfair dismissals include dismissals for reasons related to union activities, exercising rights provided by the Act, pregnancy, and unfair discrimination.
- Disputes about unfair dismissals can be referred to the CCMA or the Labour Court, with various remedies available, including reinstatement, re-employment, and compensation.
- Special provisions exist for dismissals based on operational requirements and the transfer of contracts of employment, ensuring fair processes and protections for employees.
This concludes Module 8. In the next module, we will explore the general provisions of the Labour Relations Act. Thank you for your attention, and we look forward to continuing this journey with you.