COVID-19 Corona Virus South African Resource Portal 

When should I consider retrenchment instead of temporary layoff for my employees?

As an employer, if you are anticipating that you will not recover from the impact to your business due to COVID-19, and cannot feasibly consider alternatives (e.g. layoffs, short time or reduced salaries), then you’re entitled to initiate a retrenchment process now.

However, remember that retrenchment should be your last resort and if there is a possibility that your business might still recover, we advise that you rather place employees on temporary layoff and apply for TERS benefits on their behalf whilst the window for submissions is still open. Read more

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