Amended by legal aid south africa act 39 of 2014 from 1 mar 2015. Section 189 what is section 189 of the labour relations. To change the law governing labour relations and, for that purpose to give effect to section 27 of the constitution. Amendment of section 189a of act 66 of 1995, as inserted by section 45 of. Section 189 2 requires an employer and the other consulting parties to engage in a meaningful. The date on which the amendments will come into operation is still to be determined but it. Section 189 a applies to all employers with more than 50 employees if. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders.
Your guide to labour law in south africa labour guide. Application of section 189 and section 189a of the labour relations act 66 of 1995 as amended by mawethu siyabulela rune submitted in partial fulfilment of the requirements for the degree of magister legum in the faculty of law at the nelson mandela metropolitan university supervisor. Changes that have been made appear in the content and are referenced with annotations. Labour relations act 66 of 1995 1 you are currently viewing the full act. Section 189 and section 189 a of the lra, should however be read together. This morning, it was reported in the media that productivitysa has called for section 189 of the labour relations act lra to be amended. Section 189 of the labour relations act hereinafter called the act relates to the dismissal of employees based on operational reasons and prescribes a very clear procedure to be followed in the event of such retrenchments. Section chapter i purpose, application and interpretation 1 purpose of this act 2 exclusion from application of this act 3 interpretation of this act. Labour relations amendment bill ms seftel dealt with the outstanding issues of the labour relations act and in particular, the departments response to submissions made at the public hearing. Labour relations amendment act south african government. Labour relations act, basic conditions of employment act. What constitutes a benefit by virtue of section 1862 of. Employment retrenchment guideline cliffe dekker hofmeyr.
The purpose of s189 of the labour relations act is to investigate through the. The issues in relation to the protective award under s188 and section. Business to include the whole or part of any business, trade, undertaking or service. Labour relations act 66 of 1995 english text signed by the president. To change the law governing labour relations and, for that purpose to give effect. Choose location johannesburg, south africa east london, south africa tba durban, south africa port elizabeth, south africa. Extracts from the labour relations act unfair dismissals. Summary of the labour relations amendment act 6 of 2014 elrc.
Throughout this specific section, the act obliges the employer to consult both the affected employees andor union on the. When does s189a of the lra apply to a retrenchment process. Example of a section 189 letter together with a checklist of the procedures and steps. Its purpose is to set out guidelines which in the opinion of the minister will be helpful for the purpose of promoting good labour relations, having regard to the following. Section 198 introduces important new rights for labour broker, contract and parttime workers. If a facilitator is not appointed a party may not refer a dispute to a council or the commission unless a period of 30 days has lapsed from the date on which notice was given in terms of section 189 3. Section 1941 this section deals with the removal of the cap on compensation. Determine which employees will be affected by the proposed termination. On 3 march 2015, the labour appeal court lac ruled that the courts prior interpretation of the validity of termination notices that are issued in violation of s189a8 of the labour relations act, no 66 of 1995 lra was incorrect. Relevant legislation labour relations act, section 185. The esa is the basic legislation providing minimum terms and conditions of employment for all employees in ontario, except those employed in federal works or undertakings these. Labour court held that s1891 has always been interpreted. Example of a section 189 letter together with a checklist. Labour relations act 66 of 1995 south african government.
Like all dismissals retrenchments must be both procedurally and substantively fair. Retrenchment in terms of section 189a labour guide. To determine your precise legal rights, you should refer to the appropriate statute for example, the labour relations act or employment standards. This booklet is a summary of the new section 198 of the labour relations act lra of 2014. Bradshaw and others, claim a protective award pursuant to section 189 of the trade union and labour relations consolidation act 1992. This section applies to every company including banking and insurance company. Section 189 1 of the lra provides that, before retrenching, employers must consult any person whom the employer is required to consult in terms of the collective agreement. Labour act, 2003 ministry of employment and labour relations.
Where a statement in the guide is based upon a particular section of an act or one of the boards rules, the section or rule. Section 189 of the labour relations act hereinafter called the act relates to the dismissal of employees based on operational reasons. Bumping by now most employers are aware of the requirements of section 189 of the labour relations act, when implementing retrenchments, the pitfalls and problems associated with retrenchments. Second generation transfers in terms of section 197 of the lra. There are changes that may be brought into force at a future date. Section 189 of the labour relations act lra permits employers to dismiss employees for operational requirements. Labour relations amendment act 42 of 1996 basic conditions of employment act 75 of 1997 employment equity act 55 of 1998 labour relations amendment act 127 of 1998. In terms of section 197 a business includes the whole or a part of any business, trade, undertaking or service.
Once the company contemplates retrenchments it must prior to making a decision advise and consult with the employees or their designates and follow the provisions contained in section 189 of the labour relations act, which provides that the employer must. Title amended labour relations act pdf description the labour relations act by the department of labour no. With acts you are guaranteed the latest and most up to date resource for your legislative needs. In the apollo case the court once again had to determine the content of benefits in terms of section 1862a of the labour relations act 66 of 1995 hereafter the lra. That is, section 188 of the lra states that a dismissal is unfair if the employer fails. The summary is a popular version of the new rights and is aimed at everyone involved. Trade union and labour relations consolidation act 1992, section 189 is up to date with all changes known to be in force on or before. Section 189 of the labour relations act requires all consulting parties to reach. This section which sets out the guidelines for retrenchment procedures currently limits the parties who must be consulted to. Section 189 of the lra10 codifies retrenchment and is read in conjunction with the. Section 189 of the labour relations act 14 section 189a of the labour relations act 16 chapter 3.
Employers are often uncertain as to who they should consult with when embarking on a restructuring exercise in terms of section 189 of the labour relations act 66 of 1995, as amended the lra. Act is hereby amended by the substitution in section 1 for paragraph a of the. Section 189a 1 applies to employers that employ 50 or more employees and intend to retrench the following number of employees. Identifying consulting parties in terms of section 189 1 of the lra. Those changes will be listed when you open the content using the table of contents below. Section 197 of the labour relations act deals with the transfer of a business and the rights of employees affected by such a transaction. The key question was whether, upon termination of service level agreements between city power and grinpal, there was a transfer of business as a going. Under section 189 tulrc act 1992 an employee can bring a complaint. P r in t f u ll a c t e x p o r t f u ll a c t assented to 29 november 1995. This constitutional right can only be exercised peacefully and unarmed.
There are outstanding changes not yet made by the legislation. In national union of mineworkers v anglo american platinum ltd and others 20 12 bllr 1253 lc the applicant, num, brought an urgent application seeking the reinstatement of its members who were dismissed by the respondent, amplats, for operational requirements pending amplats compliance with ss 189 and 189a of the labour relations act. This emplyee has to be dismissed due to be financial reasons as well as someone else has to be employed with other technical abilities. In terms of section 197 of the labour relations act the lra, the sale of a business as a going concern takes place subject to the provisions of the lra. Editors pick section 188 of the labour relations act, no 66 of 1995 permits an employer to dismiss an employee for reasons related to the employees misconduct. Retrenchment consultation and the labour relations act 66. Amended labour relations act pdf, document, labour law. The act in section 197 thereof deals with the transfer of a contract of employment and defines.
Any changes that have already been made by the team appear in the content and are referenced with annotations. Labour relations act, no 66 of 1995 lra, an employer must consult with. Definition as inserted by section 2 of act 17 of 2002. Trade union and labour relations consolidation act 1992. The labour relations act requires that consultation must take place when the employer contemplates retrenchment. These are defined as requirements based on economic, technological, structural or similar needs of the employer. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. As section 1862b refers to suspension together with any other unfair disciplinary action short of dismissal, it clearly includes both categories. Section 1 of the labour relations act, 1995 hereinafter referred to as the principal. Depending on various factors, the consultation process could last several months and as a result, identifying the correct party. Section 197 of the labour relations act, no 66 of 1995 lra was enacted to change the common law position, with the effect that an automatic transfer of contracts of employment from the transferring employer previous employer to the acquiring employer new employer now takes place in.
Trade union and labour relations consolidation act 1992, section 189 is up to date with all changes known to be in force on or before 08 april 2020. Section 189 retrenchment process and the employees. Dismissal based on operational requirements, s189 lra. Act 651 7 the six hundred and fiftyfirst act of the parliament of the republic of ghana entitled labour act, 2003 an act to amend and consolidate the laws relating to labour, employers, trade unions and industrial relations. Section 197 provides for the transfer of employment contracts upon the transfer of a business. Retrenchment in terms of section 189a ccma info sheet. Section 189a facilitation facilitator regulations 19 large scale retrenchments without facilitator 21. Cosatu was of the opinion that the 12 month cap period should be removed. What constitutes a benefit by virtue of section 1862 of the labour relations act 66 of 1995 apollo tyres south africa pty ltd v ccma 20 5 bllr 434 lac. It is hereby notified that the president has assented to the following act which is hereby published for general information.
The labour relations amendment act 6 of 2014 act was assented to by the president and published in the government gazette no. The unfair suspension of an employee or any other unfair disciplinary action short of dismissal in respect of an employee. It includes all amendments made to the act up to the 1st february, 2006, i. Employees may negotiate for such a package and the minimum criterium that may be used is one weeks salary for every year that was completed. Time off for members of workplace forum section 821p. Section 189 what is section 189 of the labour relations act.
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