5
Judgment No. CCZ 2/18
Constitutional Application No. CCZ 86/15
LEGISLATIVE AMENDMENT
The Legislature amended s 12 of the Act through s 4 of the Labour Amendment Act (No.
5) 2015. Section 12 of the Act provided for the duration, particulars and termination of
employment contracts. In particular, s 12(4) of the Act regulated the notice periods to be given in
respect of different types of employment contracts. Section 12(4) of the Act was amended by the
insertion of subparas (4a) and (4b), which provide as follows:
“(4a) No employer shall terminate a contract of employment on notice unless (a)
the termination is in terms of an employment code or, in the absence of an
employment code, in terms of the model code made under section 101(9); or
(b)
the employer and employee mutually agree in writing to the termination of the
contract; or
(c)
the employee was engaged for a period of fixed duration or for the performance of
some specific service; or
(d)
pursuant to retrenchment, in accordance with section 12C.
(4b) Where an employee is given notice of termination of contract in terms of
subsection (4a) and such employee is employed under the terms of a contract without limitation of
time, the provisions of section l2C shall apply with regard to compensation for loss of
employment.”
Section 12C of the Act was repealed and substituted as follows:
“12C
Retrenchment and compensation for loss of employment on retrenchment or in
terms of section 12(4a)
(1)
An employer who wishes to retrench any one or more employees shall -
(a) give written notice of his or her intention (i)
to the works council established for the undertaking; or
(ii)
if there is no works council established for the undertaking or if a majority
of the employees concerned agree to such a course, to the employment
council established for the undertaking or industry; or