If you genuinely can no longer afford the job, or your household no longer needs it, you can retrench, but it is a specific process. It is no-fault, it needs a proper conversation and notice, and severance pay is owed: one week's pay for every completed year of service. AskMandla helps you do it lawfully and works out exactly what is due.
What retrenchment is
Retrenchment is ending a job for operational or financial reasons, not because of anything the worker did wrong. Money is tight, the family is moving, the hours are no longer needed. Because it is no-fault, the worker is owed more than they would be after a dismissal for misconduct.
The fair process
- Talk to the worker in good faith before you decide, and explain the reason honestly.
- Look at alternatives first, such as fewer days or reduced hours, and consider them properly.
- Give the required written notice, or pay in place of it.
What is owed
- Severance: one week's pay for every completed year of service.
- Notice, or pay in place of notice.
- Any wages still owed, and unused leave paid out.
See severance and final pay for how each part is worked out.
UIF
Retrenchment is exactly what UIF is for. We prepare the UI-19 so the worker can claim while they look for the next job.
How AskMandla helps
We guide the conversation and the timing, write the letters, calculate the severance and the final payslip, and prepare the UIF paperwork, all on WhatsApp.