Retrenchment and measures how to avoid retrenchment
Retrenchment is nothing but a dismissal for operational reasons, which can include a variety of reasons such as the financial decline of a business, an employer deciding to increase profits of his business or a part thereof, the introduction of new technology that results in a decline in positions or structural changes such as the transfer of a part of the business of the employer. Retrenchment is one of the three reasons accepted in the South African labour law to dismiss an employee. Retrenchment is also known as a "no fault dismissal". Due to the fact that it is in essence still a dismissal, the requirement of "fair labour practices" still applies.