[Abbreviated version] The long-term effects of Covid-19 on businesses have become clearer. Short-term interventions, such as taking annual leave, temporary lay-off, short time and pay cuts, may no longer be appropriate. It may be necessary for a more permanent measure; i.e. retrenchment. But what payments are employees entitled to if they are retrenched?
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RETRENCHMENT PAYOUTS IN THE COVID-19 CONTEXT [Full article version]
The long-term effects of Covid-19 on businesses have become clearer. Short-term interventions, such as taking annual leave, temporary lay-off, short time and pay cuts, may no longer be appropriate. It may be necessary for a more permanent measure; i.e. retrenchment. But what payments are employees entitled to if they are retrenched?
ANNUAL LEAVE IN THE COVID-19 CONTEXT
As we approach the end of a very unusual year, employers are faced with multiple questions surrounding annual leave entitlement.
Many employees took annual leave during the lockdown, resulting in a significant depletion of the leave available to them. Many employees have also been laid off or had their work hours reduced. But how has leave accrued during this period and how must it be calculated?
Guide to UIF and other Covid-19 options
Much confusion has arisen with the introduction of the Covid-19 temporary employee / employer relief scheme (C19 TERS)
INDEFINITE LAY-OFF WITHOUT PAY?
As the economic effects of Covid-19 drag on, employers are faced with new questions surrounding the temporary lay-off of employees. Surely lay-off cannot continue forever. So, for how long may employees be laid off?
CONSULTATIONS AND HEARINGS VIA ELECTRONIC PLATFORMS
Disciplinary hearings via Skype? Consulting via Zoom? Are such processes allowed? Electronic platforms have become more accessible. The Covid-19 pandemic has alerted us to opportunities that were not obvious before. Does this mean that we may embrace these platforms in labour and employment law processes?
COVID-19 SICK LEAVE CRISIS LOOMING
With a large proportion of the population likely to become infected with Covid-19 before a vaccine is available, businesses are in for a rough ride in the coming months. Some employees will have tested positive, others might simply present with symptoms. Are they entitled to paid sick leave, UIF illness benefits or Compensation Fund benefits?
THINK TWICE BEFORE RETRENCHING!
Retrenchment may be the first thought that comes to mind for employers who are hard hit by Covid-19. However, in most cases rushing into the retrenchment process is not a good idea.
EMPLOYMENT CHALLENGES AFTER LOCKDOWN
Aside from the adverse economic, health and social impact of the Corona crisis on people generally, employers are also confronted by complex legal issues and facing several employment challenges after lockdown.
UIF – NEW “NATIONAL DISASTER BENEFIT”
According to an “Easy – Aid Guide for Employers”, the UIF has added a R3500 per month flat rate benefit to the existing relief measures, which it refers to as a “National Disaster Benefit”.
WHO PAYS SALARIES DURING 21-DAY LOCK-DOWN?
In a drastic measure to curb the spread of COVID-19, the SA Government has declared a lock-down as from midnight on Thursday 26 March 2020 until midnight on Thursday 16 April 2020. This will be enacted in terms of the Disaster Management Act. During this period all employees, with the exception of a few categories, will have to stay at home. Who pays their salaries? What happens after the 21-day lock-down?
UIF OPTIONS IN CORONAVIRUS CONTEXT
Here are the announced measures by Minister of Employment and Labour to facilitate a variety of UIF claims relating to the Coronavirus.
COVID-19 & UIF – SHORT TIME & TEMPORARY LAY-OFF
Some businesses are under severe strain as a consequence of the severe measures implemented due to the COVID-19 having been declared a national disaster. They are resorting to emergency measures such as short time & temporary lay-off. A fairly recent amendment to the Unemployment Insurance Act of 2001 is likely to bring much needed relief to affected employees.
CORONAVIRUS IMPACT IN THE WORKPLACE
Now that the World Health Organisation has declared the Coronavirus (COVID-19) outbreak a pandemic and the President has declared it a national disaster, employers are under increased pressure to take action: What precautionary measures should be taken, what forms of leave apply, how must employees be accommodated, quarantine, how does one deal with a slowdown in business, etc?
FLEXIBLE EMPLOYMENT CONTRACTS
The basis of every employment relationship is a contract of employment. As the parties are bound by the contract, careful thought should be given to the specific terms and conditions. But how much information should be included and how flexible can it be?
PARENTAL LEAVE – EMPLOYEE RIGHTS AS FROM 1 JANUARY 2020
Employees are legally entitled to parental leave, adoption leave and commissioning parental leave as from 1 January 2020. This follows a proclamation issued by the President (on 23 December 2019) in terms of section 17 of the Labour Laws Amendment Act of 2018.
DRAFTING OF DISCIPLINARY CHARGES
All too often employers are expected to be technically correct when drafting disciplinary charges. But is this fair to the employer? What if the employee has not been prejudiced?
DISMISSAL DUE TO BREAKDOWN OF TRUST
It is the breakdown of the relationship of trust that normally justifies termination of employment in cases of employee misconduct. How serious must that breakdown be? Does the employer have to prove such breakdown of trust to justify dismissal?
REDUNDANCY VS RETRENCHMENT
When employers restructure in order to improve efficiencies, it leads to redundancies. Redundancies can lead to retrenchment, but not necessarily. This is where employers often get it wrong.
HEARSAY EVIDENCE IN DISCIPLINARY AND ARBITRATION HEARINGS
Occasionally a customer or other external party is witness to employee misconduct. It may be necessary for such person to give evidence in disciplinary proceedings. If the employee challenges the outcome of the hearing, such evidence may also be needed in arbitration proceedings. But what if the person does not want to get involved? Is hearsay evidence allowed?
THE DECISION TO RETRENCH
When it comes to retrenchment, employers tend to make the mistake of announcing their decision to retrench before consulting with the affected employees or their union. Confronting employees with a fait accompli can be fatal to the process. But does this mean that an employer may not form any opinion before consulting?
THE RIGHT TO A PRE-SUSPENSION HEARING
In a disciplinary hearing an employee has the right to be heard before being judged. But does an employee have the right to be heard before being suspended pending the outcome of the hearing? Against the background of conflicting case law, the Constitutional Court has finally brought about some clarity on pre-suspension hearings.
MINIMUM WAGE IN WHOLESALE & RETAIL SECTOR (MARCH 2019)
Employers were expecting the minimum wage rates in the Wholesale and Retail Sector to be increased with effect from 1 March 2019 – this did not happen.
RELIGION AND DISCRIMINATION AT WORK
Adherents to certain religions are reluctant to work on their sabbath or other holy days. But what if such a refusal clashes with the employer’s operational needs?
NATIONAL MINIMUM WAGE EFFECTIVE 1 JANUARY 2019
The national minimum wage (NMW) has been signed into law. Effective 1 January 2019. What exactly does this mean to employers and employees?
The right to an interpreter in a disciplinary hearing
A recent Labour Court judgement highlighted the importance of respecting an employee’s home language and right to an interpreter in a disciplinary hearing. But what if the disciplinary hearing is conducted in English and the employee is proficient in English?
DAGGA IN THE WORKPLACE
People may no longer be prosecuted for cultivating, possessing and using small amounts of dagga for private purposes. But what are the consequences for the workplace?
Disciplinary action after resignation with immediate effect
Can employees escape the consequences of their actions by resigning with immediate effect? There has been uncertainty about an employer’s right to proceed with disciplinary action after an employee’s resignation ‘with immediate effect’ but a judgement of the Labour Court in Cape Town has brought about much needed clarity.
Ignoring CCMA Awards
When the CCMA makes an award for the reinstatement of an employee who has been unfairly dismissed or suspended, it seldom goes down well. But what happens if the employer ignores the award?
CONSISTENCY IN DISCIPLINARY CASES
Employers must exercise their disciplinary powers in a consistent manner. The primary reason for requiring employers to act consistently when instituting disciplinary action or meting out disciplinary sanctions, is to ensure that they do not act arbitrarily. In other words, like cases must be treated alike.

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