The business keeps record of all retrenchments and can demonstrate through records that retrenchment is done in line with the retrenchment policy

What does this mean?

  • Retrenchment records should be kept by the business for at least a period of 5 years. 
  • The reasons for retrenchment need to be very clear.  For example if the reason was because the business could no longer afford a number of employees, then they cannot hire new employees within a certain time frame.

What do I do?

The Department of Labour has a clear guideline as to retrenchment practices: