When dismissing an employee due to the operational requirements of a business, the employment relationship is ended due to no misconduct on the part of the employee. A retrenchment is thus seen as a “no-fault” dismissal. A severance package is calculated and paid to the affected employee to compensate for their loss of employment and assist the retrenched employee while seeking alternative work. Sections 35 and 41 of the Basic Conditions of Employment Act (BCEA) should be consulted when...










