Retrenchment is a reality

Reality has just hit: you have to retrench your employees. Where do you begin? What is the correct process? How do you ensure your employees are fairly treated? Your employees are scared. They have no idea what the future holds for them. Will they be retrenched or not? Who will be impacted? How will this affect their families? Will the company survive? Everyone has so many questions and answers are few.

The Construction industry is reeling

Even before the lockdown and consequent fallout from Covid-19 the economy in South Africa had severely impacted most businesses, with the construction industry paying a brutal price. Many companies are now faced with the need to restructure, not only for cost saving but, in some instances, for survival itself. A large number of construction companies went into business rescue before lockdown and, sadly for some, even this was not sufficient to ensure survival, resulting in liquidations.

Whether your company is downscaling or facing liquidation, retrenchment is necessary. It is a scary process for everyone. How this process gets handled will have repercussions for your business in future; both legal and reputational.

Ethical retrenching

It is never easy to look your employees in the eye while telling them that they are redundant/retrenched. Whilst this may be deemed to be a no fault dismissal, the adverse effects on employees are far-reaching, especialy in light of the magnitude of South Africa’s current economic crisis. National Treasury’s most conservative estimate is a 6% retraction in GDP with a probable unemployment rate of > 40%. * The bleak reality is that many of these employees will remain unemployed for some time to come.

Minimise the business and employee risk

It is for this reason that The Construction Platform (TCP) offer its clients a one-stop approach to minimise their liabilities risk, but also to provide a support service that gives practical and emotional assistance to help retrenched employees transition into a new means of income production.

Our attorneys assist the business by dealing with all the legal and best practice aspects pertaining to the provisions of Section 189 and Section 189A of the Labour Relations Act, whilst the support team handles the practical and emotional needs of the retrenched employees. The services include: emotional counselling, providing sound financial advice and, most importantly, equipping employees to earn an income post retrenchment. We provide online training and coaching in essential new-world-of work or business skills to enable them to either find new jobs or become entrepreneurs.

Building a future

Our holistic approach is aimed at a win-win situation. Whilst employers will have achieved sustainability of their business, their retrenched employees will become self-sufficient and, in turn, the company will retain its reputation as an employer of choice. This will help employees, the company and the country at large as it will help reduce those dependent on the state for support due to unemployment as well as maintaining the positioning of the company.

Where there is no alternative but to close the doors we will partner with you to ensure that this is done in the most ethical and efficient manner. 

As part of our new product launch, we are offering you a FREE Risk Assessment. This assessment is aimed at determining the company’s needs and what steps need to be taken going forward. The assessment will be conducted by our senior attorneys* so that you can be assured of receiving the very best advice.
 

Contact us on (011) 234 2125 or kevin@theconstructionplatform.co.za  or leigh@theconstructionplatform.co.za