Alternatives to retrenchment

Companies are encouraged to retain their workers and consider alternatives to retrenchment.

They can consider:

  • redeployment
  • shorter work weeks
  • temporary layoffs

Redeployment

Instead of retrenchment, the company could redeploy and assign the employee to new job roles within the organisation.

Shorter work weeks

Instead of retrenchment, the company could ask the employee to work only a few days a week.

This reduced duration should not:

  • exceed 3 days in a week
  • last more than 3 months

Temporary layoffs

Instead of retrenchment, the company could ask the employee to take up to 50% of their earned annual leave.

In such an arrangement, the company:

  • must pay at least 50% of the employee’s gross salary
  • should not implement the layoff period for more than 1 month, subject to review
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