Section 189 of the labour relations act 14 section 189a of the labour relations act 16 chapter 3. This morning, it was reported in the media that productivitysa has called for section 189 of the labour relations act lra to be amended. Labour relations amendment bill ms seftel dealt with the outstanding issues of the labour relations act and in particular, the departments response to submissions made at the public hearing. This section applies to employers employing more than 50 employees if the employer intends. Congress enacted the national labor relations act nlra in 1935 to protect the rights of employees and employers, to encourage collective bargaining, and to curtail certain private sector labor and management practices, which can harm the general welfare of workers. It is hereby notified that the president has assented to the following act which is hereby published for general information. There have been divergent views as to whether a former employee can refer a dispute, other than an unfair dismissal dispute, against their erstwhile employer.
Section 188 of the labour relations act, no 66 of 1995 permits an employer to dismiss an employee for reasons related to the employees misconduct. Under section 2 of the lra, operational requirements is defined to mean. Provisions of section 197 labour relations act transfer. Section 189a facilitation facilitator regulations 19 large scale retrenchments without facilitator 21 the dispute process. Section 189 of the labour relations act hereinafter called the act. Section 65 of the lra has been amended to make it clear that the right to strike or lockout is limited if the issue in dispute is one that a party has the right to refer to arbitration or the labour court in terms of the lra or in terms of any other employment law i. Section 77 refers to section 77 of the labour relations act which speaks to protest action to promote or defend socioeconomic interests of workers.
Section 189 2 requires an employer and the other consulting parties to engage in a meaningful. Section 1862 of the labour relations act 66 of 1995 lra, defines an unfair labour practice as any unfair act or omission that arises between an employer and an employee. The lra in section 1892 prescribes the consideration of certain factors during the consultation process, one of which is the method for selecting the employees to be dismissed. In plain language the company must advance some plausible reason for the proposed dismissals which may be anything from a need to curtail costs to a need to reorganize.
The labour relations act is the statute that regulates labour relations and collective bargaining in the private sector in this province. The labour relations act requires that consultation must take place when the employer contemplates retrenchment. The ccma code of good practice on operational requirements accepts the. Section 189 35 sets out very specific points which must be consulted on when embarking on such process. Employment law update an exemployee refers an unfair. Whereas it is in the public interest of the province of manitoba to further harmonious relations between employers and employees by encouraging the practice and procedure of. Labour court held that s1891 has always been interpreted. Compensation for occupational injuries and diseases. This section applies to every company including banking and insurance company. Example of a section 189 letter together with a checklist. Section 189 what is section 189 of the labour relations. Section 189 of the labour relations act lra permits employers to dismiss employees for operational requirements. Dismissal based on an employers operational requirements as per.
Section 32 of the principal act is hereby amended a by the insertion in subsection 3 of the following paragraph after paragraph d. Consultation is a joint consensus seeking exercise and mutual cooperation is. The date on which the amendments will come into operation is still to be determined but it is expected to be before the end of the year. Section 189 retrenchment process and the employees proposals. In addition, num alleged that amplats acted unfairly in that it failed to comply with s 52 of the. Retrenchment consultation and the labour relations act 66 of 1995. The labour relations amendment act 6 of 2014 act was assented to by the president and published in the government gazette no. National labor relations act international labour organization.
Where disciplinary action is unfair labour practice referral to board referral by minister saving clause as to wages 16. Depending on various factors, the consultation process could last several months and as a result, identifying the correct party. Trade union and labour relations consolidation act 1992, section 189 is up to date with all changes known to be in force on or before 07 may 2020. Labour relations amendment act 12 of 2002 intelligence services act 65 of 2002 electronic communications security pty ltd act 68 of 2002 general intelligence laws amendment act 52 of 2003 prevention and combating of corrupt activities act 12 of 2004 act to change the law governing labour relations and, for that purpose to give effect to. In particular, you need to be aware of section 197 which deals with the transfer of the employment contract from the old employer to the new employer. The labour relations act, 2007 the labour relations act, 2007 arrangement of sections section part 1. Unfair labour practice means any unfair act or omission that arises between an employer and employee involving a unfair conduct by the employer relating to the promotion, demotion, probation excluding disputes about dismissals for a reason relating to. Section 2 of the labour relations act defines operational requirements as requirements based on the economic, technological, structural, or similar needs of an employer. However, the lras provisions make the implementation of retrenchment, especially largescale retrenchments, extremely difficult. Looking at the questions that are asked by employers and employees regarding retrenchments, there clearly seems to be a lack of understanding of the rights of employees in terms of section 189 189 a of the labour relations act as well as the basic conditions of employment act. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. Changes that have been made appear in the content and are referenced with annotations. Employers are often uncertain as to who they should consult with when embarking on a restructuring exercise in terms of section 189 of the labour relations act 66 of 1995, as amended the lra.
On 3 march 2015, the labour appeal court lac ruled that the courts prior interpretation of the validity of termination notices that are issued in violation of s189a8 of the labour relations act, no 66 of 1995 lra was incorrect. Throughout this specific section, the act obliges the employer to consult both the affected employees andor union on the. An employer who employs 50 or less employees are subject to the process set out in section 189 of the lra, which. Oct 02, 2017 this morning, it was reported in the media that productivitysa has called for section 189 of the labour relations act lra to be amended. A vr exercise should be introduced as part of the consultation process on potential retrenchment in terms of section 189 and 189a of the labour relations act. Section 194 of the labour relations act lra allows arbitrators and judges to grant employees compensation for unfair dismissal where reinstatement is not appropriate.
This booklet is a summary of the new section 198 of the labour relations act lra of 2014. In national union of mineworkers v anglo american platinum ltd and others 20 12 bllr 1253 lc the applicant, num, brought an urgent application seeking the reinstatement of its members who were dismissed by the respondent, amplats, for operational requirements pending amplats compliance with ss 189 and 189a of the labour relations act 66 of. There are changes that may be brought into force at a future date. Section 189 retrenchment process and the employees. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. Labour relations act, no 66 of 1995 lra, an employer must consult with.
The labour relations act contains provisions outlining the labour relations rights and responsibilities of employers, trade unions and employees. Employment law update section 189a of the labour relations act. Section 198 introduces important new rights for labour broker, contract and parttime workers. In the absence of an agreement between the consulting parties on the selection criteria, the employer must apply a fair and objective criteria which does not. Section 189a of the lra stipulates the procedure for large scale retrenchments. If the labour court or an arbitrator appointed in terms of this act finds that a dismissal is unfair, the court or the arbitrator may order the employer to reinstate the employee from any date not earlier than the date of dismissal. As section 186 2 b refers to suspension together with any other unfair disciplinary action short of dismissal, it clearly includes both categories. Some employers are under the impression that retrenching an. The purpose of this guide is to provide parties representing themselves with information on the process for presenting a complaint under section 190 of the federal public sector labour relations act the fpslra and for hearings before the federal public sector labour relations and employment board the fpslreb. This section applies to every company including banking. If so, then make sure that you know about and comply with the provisions of the labour relations act. Labour relations act, basic conditions of employment act. Retrenchment in terms of section 189a labour guide. With acts you are guaranteed the latest and most up to date resource for your legislative needs.
Section 1893 and 189 a of the lra labour relations act4, guides an employer in relation to the procedural requirement when embarking on a retrenchment process. The summary is a popular version of the new rights and is aimed at everyone involved in defending or organising such workers. Test to determine substantive fairness in a dismissal for operational. Section 189 1 of the lra provides that, before retrenching, employers must consult any person whom the employer is required to consult in terms of the collective agreement. Section 189 of the labour relations act hereinafter called the act relates to the dismissal of employees based on operational reasons and prescribes a very clear procedure to be followed in the event of such retrenchments. Operational requirements are defined under the labour relations act lra as. Cosatu was of the opinion that the 12 month cap period should be removed. Employers have tried to broaden the ambit of this form. Example of a section 189 letter together with a checklist of. This section which sets out the guidelines for retrenchment procedures currently limits the parties who must be consulted to. Employment retrenchment guideline cliffe dekker hofmeyr.
Section 189a1 applies to employers that employ 50 or more employees and intend. Section 189 of the lra lays down a number of strict requirements, the breach of which would. What constitutes a benefit by virtue of section 1862 of. Trade union and labour relations consolidation act 1992. Section 1941 this section deals with the removal of the cap on compensation. These are defined as requirements based on economic, technological, structural or similar needs of the employer. A compensation order is one that requires the employer to pay the employee an amount of money in recompense for unfair dismissal or an unfair labour practice.
Share on twitter share on linkedin share via whatsapp print pdf. The unfair suspension of an employee or any other unfair disciplinary action short of dismissal in respect of an employee. Summary of the labour relations amendment act 6 of 2014 elrc. Notice is hereby given in terms of section 2032 of the labour relations act, 1995 act no. Although crafted in procedural terms the object of section 189 is substantive. The labour relations act manitoba labour board the basic principles of the labour relations act, since 1972, as set out in the preamble to the act are. Section 189 what is section 189 of the labour relations act. Dismissal based on operational requirements as contained in the lra further states in item 1 that. Put in another way, the evocation of section 197a1a and b read with subsection 1 c of the lra, is that the new employer does not automatically substitute the old. The purpose of s189 of the labour relations act is to investigate through the. Identifying consulting parties in terms of section 189 1 of the lra.
Your guide to labour law in south africa labour guide. Remedies for unfair dismissal and unfair labour practice. If an employee does not adhere to the dress code in the workplace because of his religion, culture or gender and is then dismissed for failing to do so such a dismissal may be regarded as automatically unfair in terms of section 187 1 f of the labour relations act the lra. The labour relations act back to the act bilingual pdf 1. Section 197 of the labour relations act, no 66 of 1995 lra was enacted to change the common law position, with the effect that an automatic transfer of contracts of employment from the transferring employer previous employer to the acquiring employer new employer now takes place in the event that the. To change the law governing labour relations and, for that purpose to give effect to section 27 of the constitution.
Trade union and labour relations consolidation act 1992, section 189 is up to date with all changes known to be in force on or before. The act guarantees employees the right to seek collective. Bumping by now most employers are aware of the requirements of section 189 of the labour relations act, when implementing retrenchments, the pitfalls and problems associated with retrenchments. What constitutes a benefit by virtue of section 1862 of the. This payment is not one for measured damages or quantified losses.
What constitutes a benefit by virtue of section 1862 of the labour relations act 66 of 1995 apollo tyres south africa pty ltd v ccma 20 5 bllr 434 lac. Dismissal based on operational requirements, s189 lra. An employee may refer a dispute concerning an alleged unfair labour practice to the labour court for adjudication if the employee has alleged that the employee has been subjected to an occupational detriment by the employer in contravention of section 3 of the protected disclosures act, 2000, for having made a protected disclosure defined in. Depending on various factors, the consultation process could last several months and as a result, identifying the. The code of good practice on operational requirements, paragraph 5. The intention of this section is primarily to bring disputing parties together to engage on a matter in order to find resolution, and at the same time to try and prevent any protest action. Identifying consulting parties in terms of section 1891 of the lra. As section 1862b refers to suspension together with any other unfair disciplinary action short of dismissal, it clearly includes both categories. In the apollo case the court once again had to determine the content of benefits in terms of section 1862a of the labour relations act 66 of 1995 hereafter the lra. Where disciplinary action is unfair labour practice referral to board referral by minister saving clause as to wages. The labour relations act lra allows employers to dismiss employees for reasons of operational requirements retrenchment. Extracts from the labour relations act unfair dismissals. Fair selection criteria in retrenchments can your employer.
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