6
(iii)
Judgment No. CCZ 2/18
Constitutional Application No. CCZ 86/15
if there is no works council or employment council for the undertaking
concerned, to the Retrenchment Board, and in such event any reference in
this section to the performance of functions by a works council or
employment council shall be construed as a reference to the Retrenchment
Board or a person appointed by the Board to perform such functions on its
behalf; and
(b)
provide the works council, employment council or the Retrenchment Board, as the
case may be, with details of every employee whom the employer wishes to retrench
and of the reasons for the proposed retrenchment; and
(c)
send a copy of the notice to the Retrenchment Board.
(2) Unless better terms are agreed between the employer and employees concerned or their
representatives, a package (hereinafter called ‘the minimum retrenchment package’) of not less
than one month's salary or wages for every two years of service as an employee (or the equivalent
lesser proportion of one month's salary or wages for a lesser period of service) shall be paid by the
employer as compensation for loss of employment (whether the loss of employment is occasioned
by retrenchment or by virtue of termination of employment pursuant to section l2(4a)(a), (b) or
(c)), no later than the date when the notice of termination of employment takes effect.
(3) Where an employer alleges financial incapacity and consequent inability to pay the
minimum retrenchment package timeously or at all, the employer shall apply in writing to be
exempted from paying the full minimum retrenchment package or any part of it to (a)
the employment council established for the undertaking or industry; or
(b)
if there is no employment council for the undertaking concerned, to the
Retrenchment Board:
which shall respond to the request within fourteen days of receiving the notice (failing which
response the application is deemed to have been granted).
(4) In considering its response to a request for exemption in terms of subsection (3) the
employment council or Retrenchment Board –
(a)
shall, where the employer alleges complete inability to pay the minimum
retrenchment package, be entitled to demand and receive such proof as it considers
requisite to satisfy itself that the employer is so unable, and if so unable on the date
when the notice of termination of employment takes effect, may propose to the
employer a scheme to pay the minimum retrenchment package by instalments over
a period of time;
(b)
shall, where the employer offers to pay the minimum retrenchment package by
instalments over a period of time, consider whether the offer is a reasonable one,
and may propose an alternative payment schedule;
(c)
may inquire from the employer whether he or she has considered, or may wish to
consider, specifically or in general, the alternatives to termination of employment
provided for in section 12D.”