Details on short time notice as an alternative to retrenchment

Most people are always online trying to search for short time South Africa or even short time notice period South Africa. Before even learning how to implement a short time, it is significant to note that a short time is an alternative to retrenchment. It is undertaken when an organization is financially drained and hopes that cutting down the costs will make things better in the company. However, an employee cannot be forced into a short time. The short time has to be consent by the employee, as a means of avoiding retrenchment.

The execution of a short time entails the reduction of the working hours of an employee, which have a corresponding decrease in the employee’s remuneration.

If you are an employee who belongs to a union and requires taking a short time document, then the procedure of how to go about slightly differs from that of the employee on a contract.

Here’s example of a notice letter for retrenchment or operational requirements 

According to section 37 of the BCEA, an employee can only offer a resignation notice, or an employer may only provide the notice of termination of employment within the following time frames:

  • A one week notice-Only if the employee has been employed for six or less than six months
  • Two week’s notice-If the employee has been employed for less than a year, but more than six months
  • Four week’s notice-If the employee has been working in the institution for more than one year. One may also deliver the four week’s notice if they are either working as a domestic worker or farmer who has been working in the institution for more than six months.

Check out template below:

[Insert organization name and address]

[Insert letter date]

[Insert name and address of employee]

Dear [Insert name of employee]

Re: Redundancy

I am writing to you to confirm our discussions on [Insert date of redundancy interview].

As I told you on that date, it has regrettably been necessary to consider specific organizational/ operational changes within the company / our branch office located at [Insert branch office location].

As a result of these proposed changes, we have made the following decision:

[These are just ideas you can choose from]

  • To cease to carry on business in the area of [Insert details of trade or type of company].
  • To cease to carry on business at [Insert branch address].

We have tried to identify a suitable alternative vacancy to offer you, but presently, none is available. I now acknowledge that your employment with the company will terminate because of redundancy on [Insert date, which must be the notice period under the employee’s contract].

We do/do not [Delete which does not apply] require you to work out your full notice period.

Upon termination we will pay you these severance payments:

  • Statutory redundancy pay$ [Insert figures]
  • Ex gratia payment (delete if not applicable) $
  • Compensation for loss of notice (delete if not applicable) $
  • Accrued holiday pay $

For any queries regarding any of the terms of this letter or your redundancy, please do not hesitate to contact me. In the meantime, please let us know if we can assist you in any way in finding future employment.

We wish you all the success in the future.

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