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FAWU wins Labour Court case - a lesson in how not to do retrenchments

By sylviahammond, 20 August, 2016

Our media often carry reports of employers explaining that our labour law is overly restrictive.  In this case it appears that the employer either had no knowledge of labour law or simply chose to ignore it.

 The Labour Relations Act gives effect to the Constitutional right to fair labour practices.  The language is plain English and very easy to follow.  The retrenchment - dismissal for operational requirements - sections 189 and 189A set out how to conduct the exercise and the requirement for consultation with relevant parties.

 In this case the employees were members of the Food and Allied Workers Union (FAWU), who succeeded in winning re-instatement for the employees - with substantial payments.

 This case attached demonstrates how not to do retrenchments - and a very, very expensive learning experience. 

Fawu v Cape Hospitality Services ta Savoy Hotel


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