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Post Info TOPIC: Salary cut after section 189
Anonymous

Date:
Salary cut after section 189
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Good day 

I am just needing to get some advice.
My company went through a section 189 process last year.
I was on a basic and commission structure.
We were told that our jobs have become redundant however they have outsourced the positions.
I however did not take a severance package as I wanted a chance to apply for the new positions made available
I did apply and did not get the position I applied for.
During that time most of the people took Voluntary Packages which the business did not budget for and it was all approved.
We were advise that no VSP are gonna be made available and the business would map us into departments that needed staff due to VSP.
So I was mapped into this department with my current basic salary only and was told that it was a lateral move even though this position is a C1 and I was C Lower with commission.
Please advise what is the process in such event on which I have taken such a huge salary cut and it has affected my whole life on a day to day basis and everything has become a burden to me.
 
Your feedback would be highly appreciated.
 
Kind regards,
 
 


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Labour Protect

Date:
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Good day, 

In the s189 procedure, you can either take a package of voluntary retrenchment or you can get retrenched as per the usual 1 week salary for every year you worked plus the leave owed to you. 

The employer can always  make your position redundant if they can prove they are making a loss or the company is suffering financially, if you entered into an agreement to stay on you could have agreed to a reduction in your pay. This consent is legal and you will be bound to it, if it was made without your consent then it could be deemed a unilateral change to the terms and conditions of your contract. 

Keep in mind if you challenge the company on this at the CCMA you could be forcing the company to retrench you. If you agreed to stay on you then agreed to the the position and the salary package offered, in these situations you could even be demoted in order to be employed. 

This is a section of the labour relations act that protects the employer first before protecting the employees, if you disagree with the 189 procedure and more than two people were retrenched in the entire company then your only recourse would be to approach the Labour Court as the CCMA cannot hear matters where more than one person has been retrenched. 

Regards 

LP



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