All European airlines grounded almost their entire fleets and largely halted operations during the March and April 2020 crisis peak, as far-reaching travel restrictions were imposed, leading to the collapse of passenger travel. Click here to download the documents free of charge! Also, our Platinum Plus policies include a retrenchment benefit for additional peace of mind. It does not have to be a formal legal document. Many companies are considering or are already in the process of retrenching workers due to the economic woes of the country that is being exacerbated by the imposed lockdown to curb the spread of the Covid-19 disease. Lawyer's Assistant: What steps have you taken so far? Banning of non-US citizens or residents who have been to China, Iran and some EU countries in the previous 14 days. More details on Singapore’s measures for inbound travellers in relation to COVID-19 can be found here. So, if you are someone who is facing retrenchment, let LAW FOR ALL shed light on the lawful process that must be followed if your employer doesn’t want to face legal action. Today’s top news: Biden announces travel restrictions. It is a simple and easy process, but should be done before the payment is made to the retrenched employee.”. […] It’s money that I have worked hard for so I am definitely waiting for it.” I feel like that’s a retrenchment call you can actually look forward to. The police may have been overwhelmed and decided that more fighting would have been counterproductive. In many instances employees are left aghast because they received less than what they anticipated – mostly because they did not fully understand the tax consequences. “It has also happened that employers pay a severance amount but neglect to apply for a tax directive. Like many other countries worldwide, South Africa went into a 21-day national lockdown on 27 March, in an effort to help slow down the spread of the Coronavirus (COVID-19). Added to this, the Code on Wages was recently passed, which has provided rights to employees in numerous previously unregulated sectors, including the entitlement to a minimum wage. Actually the 17 May order is a significant climbdown relative to the 31 May order as far as protection of wages and jobs is concerned. Sitting comfortably in the middle of affordable legal insurance cover options is our most popular package – the Platinum Policy. What will the retrenched employees take away financially. COVID-19 will initiate a new realignment. “However, it would be prudent to only reject an offer if the employee is fairly certain he will survive a formal retrenchment process, or if the offer is equal or lower than what he would get with an involuntary retrenchment process where he may only receive the statutory minimum. Merck halts Covid vaccine development after disappointing trials. One option for some financial relief is applying for the Unemployment Insurance Fund, which you can do immediately after being retrenched. Think of it as a necessary push in the direction of enriching your life with a different working experience. What’s more, the employer must state, in writing, the reasons for the retrenchment; why the alternatives that were discussed in the consultation aren’t feasible; how many employees will be affected;  and how they were selected. Of course, this is required to inform the employee of the fact the working relationship will call come to an end, and will also stipulate the employees last day of employment at the company. The voice of the Malaysian manufacturing industry. Comments section policy: Any attacks on BusinessTech, its journalists, or other readers will result in a ban. Once the discussion is complete and the employer and employee have reached an agreement, the employer must apply for a tax directive from the South African Revenue Service (SARS) to set out the tax obligation in terms of the severance payment, said Oosthuizen. If this is the case, you can approach the CCMA or a Bargaining Council within 30 days of retrenchment. If not, what can be done to minimise the financial and emotional impact of the dismissal? Again, even though you may have had some time to make peace with the retrenchment process, this kind of notice can trigger anxiety and uncertainty. A key focal point for those seeking links with Malaysian manufacturers for investment, trade and services. This blog aims to collect daily information about how the new Coronavirus COVID-19 is influencing garment workers' rights in supply chains around the world. He then applied for 22 vacancies at Telkom but, although he was short-listed for some of them, he was unsuccessful with all of them. It is advisable to have the final agreement in writing. Employers and Employees may have heard that the Commission for Conciliation, Mediation and Arbitration (“the CCMA”) has temporarily shut its doors due to the COVID-19 outbreak. The language during the discussions becomes very important, said Britz. This is the point where employers have to consider retrenchments, which can have severe emotional and financial consequences for employees. “Your employer’s tax calculation will be wrong if he is not made aware of the amounts received previously. September 7, 2017. During the announcement of Budget 2020 last month,?Deputy Prime Minister Heng Swee Keat rolled out a?Stabilisation and Support Package which aims to stabilise the economy and support workers and enterprises, by helping workers to stay in their jobs and enterprises with cash flow. It is important that agreements reached must be reduced to writing (even confirmation via WhatsApp would suffice if the normal conditions of a binding variation of a contract are met). President Ramaphosa's full coronavirus lockdown ... national disaster and announced a package of extraordinary measures ... employees directly during this period and avoid retrenchment. Of course, this process isn’t just as simple as informing an employee of their retrenchment and giving them a month’s notice. Borders closed with Canada and Mexico. The Income Tax Act allows for a far more favourable tax treatment on retirement, death or severance benefits. Still, the non-refundable advances are permissible only for specific reasons like marriage, housing, etc. A retrenchment is a form of dismissal from your job. Information is posted as it comes in from the network and cannot always be double-checked. Victorian Government assistance for businesses in response to coronavirus (COVID-19). In many instances, employees are left dismayed because they received less than they anticipated, mostly because they did not fully understand the tax consequences. During a staff cut-back exercise his job was made redundant and he was placed in a redeployment pool with the agreement of his trade union. As such these sites can remain open during the current lockdown. FMM: Economic Stimulus Package “Commendable” but … Where are the incentives to prevent retrenchment of staff, ask employers; FMM wants total suspension of foreign worker levy instead of 25% cut; Companies may have problems claiming wage subsidies under SME stimulus package, says FMM; Hapuskan syarat program subsidi upah - FMM This is important to note in light of the fact that COVID has led to various forms of retrenchment and reduction in staff levels. This is the first step of the process, and it is implemented so that all involved (the employer, employees and unions) have open and honest discussions about the reasons for possible retrenchment and who will be affected. Unsurprisingly, the economic challenges presented by COVID-19 have led to numerous restructuring and retrenchment mandates for lawyers to handle. Thus, even the possibility of invoking section 72 of DMA does not arise any longer. The board of the SA Broadcasting Corporation (SABC) is set to make a final decision next week on its retrenchment plans. Equally devastating is the realisation that the employee had outstanding tax debt which will also be deducted from the agreed amount. 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. Employment Relation during Lockdown in Nepal. These are out of the ordinary circumstances and unfortunately it has a ripple effect from the bottom to the top. When employers restructure in order to improve efficiencies, it leads to redundancies. During the lockdown, and where practical, the consultative processes can be conducted by e-meetings, e-mails or over the telephone. SABC: Cut jobs or collapse (News) ... arms maker Denel. and it is allowed especially for employees who have fulfilled minimum service period. It’s important to note that you are not being fired; meaning, this isn’t your fault. In Article Archive, Article Archive - Home, Article Archive - Teazer by Barney Jordaan 5 August 2019 1 Comment. The opening hours of individual retail outlets and DHL Paketshops may unfortunately be subject to change at short notice due to staff or organizational reasons. Make sure you reach out to a partner or close friend if you need someone to help you process your emotions. The retrenchment procedure has been simplified by the new section 12C of the Labour Act which has created a one stop shop by giving employers the right to retrench employees and also specifying the minimum retrenchment package which employers can pay the affected employees. 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