Section 189 Labour Law

Retrenchment is a specific legal process governed by sections 189 and 189a of the labour relations act.

Section 189 labour law. Throughout this specific section the act obliges the employer to consult both the affected employee s and or union on the. Section 189 of the labour relations act hereinafter called the act relates to the dismissal of employees based on operational reasons and prescribes a very clear procedure to be followed in the event of such retrenchments. The section 189 retrenchment process in terms of the labour relations act section 189 of the labour relations act lra permits employers to dismiss employees for operational requirements.

Employers are often uncertain as to who they should consult with when embarking on a restructuring exercise in terms of section 189 of the labour relations act 66 of 1995 as amended the lra depending on various factors the consultation process could last several months and as a result identifying the correct party. Section 189a applies to employers with more than 50 employees and imposes onerous conditions. These are defined as requirements based on economic technological structural or similar needs of the employer.

Section 189 of the lra lays d. Identifying consulting parties in terms of section 189 1 of the lra. Ivan israelstam the labour relations act lra allows employers to dismiss employees for reasons of operational requirements retrenchment.