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We cannot afford to retrench. What do we do?

Rather place employees on a temporary lay off or on Reduced Work Time until such time as the business can afford to retrench. However, remember that employers are obliged to offer retrenched employees “first right of refusal” (for a period of 12 months after they have been made redundant), in the event that a suitable vacancy arises and hence take such into account before considering retrenchments.

Also remember that in the retrenchment agreement, the employer and employee may agree to pay severance packages in instalments to make it more financially viable for the employer.

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