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An example of a retrenchment strategy would be: Selling assets abandoning markets decreasing production outsourcing downsizing.
The termination in a layoff is temporary while termination in retrenchment is permanent.
If youre being retrenched, heres what you can do now to empower yourself: Stay calm. Being retrenched can be a frightening experience, but now is not the time to burn your bridges. Claim for UIF. Let credit providers know. Plan your way forward. Set yourself up for success. Stay strong.
if the employee was employed for less than 6 months, s/he must be paid 1 weeks notice pay; if the employee was employed for more than 6 months but less than 1 year, s/he must be paid 2 weeks notice pay; if the employee was employed for more than 1 year, s/he must be paid 4 weeks notice pay.
What payments can you expect as retrenchment benefits? Severance pay this should be at least one weeks remuneration per completed year of service. Remuneration is calculated including basic salary and payments in kind. Outstanding leave must be paid out in full.
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What does the notice say? The sample Notice of Possible Retrenchment of an employee form allows for the employer to notify the employee that the company is considering commencing retrenchment procedures, and that the employees position may be affected in the retrenchment process.
Retrenchment is a form of dismissal due to no fault of the employee, it is a process whereby the employer reviews its business needs in order to increase profits or limit losses, which leads to reducing its employees.
If someone has worked for less than six months, it would be one weeks notice pay. If the employee has been at the company for more than six months, but less than one year, they are entitled to 2 weeks notice pay. For an employment period of more than a year, the notice pay period will be four weeks.
If you receive a retrenchment payout South Africas labour law requires the employee to be paid one weeks salary for every year worked use it to prepay your bond, car and credit cards. Also, make sure that you have received your full entitlements, such as unused leave and allowances.
The retrenchment procedure as laid down in the Labour Relations Act (LRA) must be followed properly and in good faith by the employer. The employer must also prove that he/she has shared with the targeted employees (or their representatives) all documentary and other information pertinent to the retrenchment.

retrenchment notice letter