An employer who plans to retrench must give written notice to the works council or employment council and to the Retrenchment Board, and must consult before the retrenchment happens.

Where the employer says it cannot afford the minimum package it may apply for an exemption, and the matter goes to the Retrenchment Board. The Labour Amendment Act of 2023 preserved that appeal route. The Act does not itself prescribe a calculation methodology or a payment timeframe, which remains a criticism raised by practitioners.

Applies to: Employers proposing to retrench