It is important for both Employers and Employees to know whether their retrenchment falls under Section 189 or Section 189A. Section 189A is commonly referred to as a large scale retrenchment. This article will help you determine whether yours is a Section 189 or Section 189A.
A retrenchment is considered a Section 189A, when:
Firstly – the Employer employs more than 50 employees and
if the Employer is contemplating dismissing (for reasons related to operational requirements):
- at least 10 employees if the Employer employs up to 200 employees;
- at least 20 employees if the Employer employs more than 200, but not more than 300 employees;
- at least 30 employees if the Employer employs more than 300, but not more than 400 employees;
- at least 40 employees if the Employer employs more than 400, but nor more than 500 employees; or
- at least 50 employees if the Employer employs more than 500 employees.
Another important factor – the total number of employees dismissed for operational requirements by the Employer in the 12 months prior to issuing the Section 189(3) are counted in the numbers above.
For the requirements of both a Section 189 and Section 189A see the Labour Relations Act for more details.