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Labour Protect Advice Forum -> Labour Protect Advice Forum -> Can an Employer Reduce Employees Salaries Unilaterally By 10% During a Section 189 Retrenchment Process?
Post Info TOPIC: Can an Employer Reduce Employees Salaries Unilaterally By 10% During a Section 189 Retrenchment Process?
Steve

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Can an Employer Reduce Employees Salaries Unilaterally By 10% During a Section 189 Retrenchment Process?
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To Whom It May Concern,
Due to the recession the companies gross revenues earned does not cover there month end expenses.
For the last 2 months the company has notified Employees a day before the contratced salary pay date that they cannot pay our salries on time. we eventually are paid 3 days later. Due to this Employees have suffered additional expenses due to the reversal of debit orders? What recourse do Employees have in this regard?
The Company identified 15 personnel for retrenchment but only 9 were retrenched?
Now they want to unilaterally deduct 10% against our salaries from the remaining Employees?
Is this legally allowed in a Section 189 retrenchment process?
Does the BCEA ACT 75 of 1995, Section 49 read in Conjunction with Sections 29 and 34 not protect the Employee from this pending action?
What happens to Employees who have worked there for 5 years and have not received the necessary compliance of Section 29 of the BCEA from the Employer?
These Employees have received the benefits of statutory UIF, Pension Fund & Medical Aid Contributions from the Employer?
How would the retrenchment process affect Employees without Letters of Appointment/Contracts?
Should the Employee without a a Letter of Appointment/Contract wish to apply for Voluntary Retrenchment how would this affect them?
Thank you you and look forward to receiving your opinioned response!  


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Anonymous

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hi there

first of all your employer cannot unilaterally change the terms and conditions of your employment without discussing it with you first and thereafter only upon the mutual agreement may the changes be effected.
however, it sounds as though your company is really struggling financially and this is probably the only way that thye can stay afloat and keep all of you employed. so at least that is one saving grace.
With regards to section 29, you should have queried this at the start of your employment!! As it is always better to have these things in writing. either way, it is not a legal requirement that your contract be reduced to writing and you are still afforded all of the protection contained in the BCEA and LRA.
Upon retrenchment, you will receive any overtime worked by you, as well as any leave days owed to you, as well as a severance package, 1weeks pay for every year of service, you have been there for 5years, therefore, 5weeks severance pay.

Please call the department of labour and discuss this matter with them as they will be able to advise you as to what your next step should be and the procedure to be followed should you wish to approach your employer in terms of a voluntary dismissal.

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Anonymous

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and you will be entitled to UIF as well provided you and your employer have both been contributing to this fund. make sure that your employer gives you your UIF number and register yourself at your nearest labour centre, should you be retrenched and so forth.

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