A discussion covering the COVID19 crisis and its effects on labour in business and retrenchments.

Key Notes:
Retrenchments are becoming a reality.
Ways in which employee termination can occur - Misconduct on the employee's behalf, Dismissals due to incapacity on the employee's behalf, Resignation, Operational requirements/ Retrenchments/ Redundancies this is not due to the conduct of the employee - it is due to the operational constraints of the business.
The keyword is consultation. Employers must consult with the employees as soon as there is a possibility of redundancies.
Section 189 of the Act is the most important section to take into account.
COVID is causing clear businesses financial and operational distress which is a reason for the proposed dismissal.
Alternatives available: e.g. reduced time, reduced salary, voluntary retrenchment, applying to TERS.
Common misconception surrounding re-employment employees - this is not necessary unless previously agreed.
Method of selection: If there is a sensible business purpose to hire at the same time as actioning redundancies this is viable. You need to apply sound business justification. ""Objectively justifiable"" 10:39.
Notification of employees of business rescue occurs 10 days after the business rescue practitioner is appointed 10:41.
Variable cost business models are going to be the paradigm shift going forward. Directly linking a businesses costs to turnover.
Transparency of turnover with employees goes a long way during consultation.10:49
TERS is administered through UIF it is a separate scheme to UIF relating to currently employed employees.
It is advisable to invest in/ fund a business after it has gone into business rescue (if the shareholder/ owner wants to input personal funding); this makes the funder a prefered creditor.