What is an unfair retrenchment?
Under the Labour Relations Act 66 of 1996 (LRA), an employer may retrench for operational requirements only after following a fair Section 189 process: genuine operational need, consultation, selection criteria, and consideration of alternatives.
A retrenchment may be challenged at the CCMA or bargaining council if the process was procedurally or substantively unfair.
Section 189 checklist
- Written notice to affected employees and consulting parties - Joint consensus-seeking on timing, method, and selection - Consideration of alternatives (short time, transfers, reduced hours) - Fair selection based on agreed or LIFO criteria - Severance pay of at least one week per completed year of service (unless a better collective agreement applies)
Common red flags
- Retrenchment used to remove a single employee without genuine operational need - No meaningful consultation before notices are issued - Replacement hires shortly after retrenchment - Discriminatory selection
What to do next
- Request written reasons and consultation records.
- Gather your employment contract, payslips, and retrenchment letters.
- Refer the dispute to the **CCMA within 30 days** of dismissal where applicable.
- Use **FairPlay AI** to assess your facts and prepare a structured demand or referral narrative.