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Should You At Least Start The Retrenchment Process During The Lockdown?

This depends on how much cash you have on hand and how long you think it will take before bookings pick up again. You need to calculate something called your cash burn rate to figure out how much time you can trade for.

If you don’t think things are going to pick up before you run out of cash, you should consider starting the retrenchment process now. You can do this while you place people on short time or you do temporary layoffs. Remember that you must have meaningful consultation, and this might be difficult during the lock-down.

The retrenchment process is technical and if you get it wrong you can be forced to reinstate employees. If you want to go this route you should get the advice of a labour law specialist.

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