Labour Relations Act, 1995 (Act No. 66 of 1995)

Codes of Good Practice

Dismissal based on Operational Requirements

Schedule 8

Part G - Operational Requirements

23. Fair reason

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(1)To be fair, the reason for the retrenchment and the decision to select an employee for retrenchment must relate to the employer's operational requirements.

 

(2)Dismissal must be a measure of last resort. It should only take place if it cannot be avoided by alternatives identified in the consultation process.

 

(3)Employers must, of their own initiative, take appropriate steps to avoid retrenchments where reasonably possible.