SEESA FAQ – What Options Do We Have If We Can’t Afford For Staff To Come Back From Unpaid Leave?
If there is a possibility that further layoff of the staff will place the company in a position to afford the staff again this should be discussed with staff and the company should attempt to reach an agreement with the staff to extend the layoff.
If the above is not possible or it will not assist the company and the employer cannot afford staff anymore, they will have to proceed with a retrenchment procedure and retrench the staff, but if the company cannot afford to retrench the staff as there is not enough or no money in the company, the company should apply to be sequestrated and the curator will then deal with the employees.
*Question answered by Frans Kriek SEESA Senior Labour Legal Advisor
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