Ivan Israelstam

The Labour Relations Act (LRA) allows employers to dismiss employees for reasons of operational requirements (retrenchment). However, the LRA's provisions make the implementation of retrenchment, especially large-scale retrenchments, extremely difficult. Section 189 of the LRA lays down a number of strict requirements, the breach of which would normally place the employer in hot water. These provisions require that the employer must:

  • Have a good reason for the need to retrench
  • Use fair criteria in deciding which employees are to be retrenched
  • Follow an intricate consultation procedure aimed primarily at seeking ways of avoiding retrenchment.

This process is started off with a section 189(3) notification to advise the company's employees that the employer is contemplating retrenchments. The intricate requirements of this procedure make speedy retrenchments extremely difficult, if not impossible. Despite the existence of these stringent restrictions, section 189A of the LRA - read together with section 64 (10(a) - contains additional far-reaching provisions that further delay the completion of the retrenchment process.

Section 189A applies only where the employer has more than 50 employees and:

  • Where there are up to 200 employees employed, the employer contemplates retrenching at least 10 employees.
  • Where there are up to 400 employees employed, the employer contemplates retrenching at least 30 employees
  • Where there are up to 500 employees employed, the employer contemplates retrenching at least 40 employees
  • Where there are more than 500 employees employed, the employer contemplates retrenching at least 50 employees.


The number of retrenchments is calculated by adding the number of retrenchments over the previous 12-month period to the number of retrenchments currently contemplated. Section 189A allows employees wishing to dispute the fairness of the retrenchments to either challenge them in court or to go on strike. The section also requires that the CCMA must provide a facilitator to help with the retrenchment consultations should either party request this.

Whether or not a facilitator is requested, the employer is not entitled to finalise the retrenchments before 60 days from the date on which it gave the employees the section 189(3) notification. While section 189A has been written in a very confusing and unclear manner, it appears that, where the employees have neither lodged a dispute with the CCMA nor applied for a facilitator, the employer must either lodge a dispute in terms of section 64(1) of the LRA or must apply for a facilitator.

However, this can only be done 30 days after the 189(3) notification has been issued. It seems that this needs to be done even if the parties are in full agreement on all aspects of the retrenchment (although there is not complete clarity on this). Case law appears to have confirmed some, but not all of these complex, confusing and extremely peculiar legal provisions.

In the case of Leoni Wiring Systems (Pty) Ltd vs NUMSA & others (September 2007, CLL Vol 17 No 2),the Labour Court found that, if a facilitator has been appointed, there is no need for a dispute to be lodged. It appears that the application for and appointment of a facilitator takes the place of the dispute referral.

In the case of NUM vs De Beers Consolidated Mines (Pty) Ltd (September 2007, CLL Vol. 17 No 2), the Labour Court found that, if the employer wanted to complete the retrenchment process within 60 days of the date of issue of the section 189(3) notification, then it would need to lodge a dispute to the CCMA itself as soon as the law allowed it to do so.

It appears that the law relating to large-scale retrenchments is not only complex but is also incomplete. This is because it does not specify whether a dispute must be referred even if the parties are in full agreement on all issues.

The result is that employers will end up either lodging disputes where there are none, just in order to err on the side of caution, or even leave out this step and take the risk of being penalised for committing a procedural irregularity.
Due to the onerous, complex and dangerous nature of the requirements of the LRA, it is important that employers should not take any steps towards retrenchment before obtaining advice from a labour law expert. 

  • Ivan Israelstam, chief executive of Labour Law Management Consulting, may be contacted on 011-888-7944 or 082-852-2973 or via e-mail at [email protected]
  • Our appreciation to Ivan and the Star  newspaper for permission to publish this article


What does POPI compliance mean?

By Jan du Toit


Latest developments – Registration of Information Officers:


On 17 May 2021 the Information Regulator’s long awaited online portal went live for the registration of Information and Deputy Information Officers.


The Information Officer of a Responsible Party is the person at the head of your company (CEO or MD) or any person acting in such capacity, or specifically appointed by the MD or CEO to be the Information Officer. Registration must be completed before the end for June 2021.


The address for the portal is  https://justice.gov.za/inforeg/portal.html   


The following information is required to successfully register: 

  • Company name.

  • Company registration number.

  • Company type.

  • Company physical and postal addresses.

  • Company telephone and fax numbers.

  • Information Officer gender, nationality, full name and surname, ID or passport number.

  • Deputy Information Officers same details as per above.


POPIA Compliance – what must be done?

With a little more than a month left before POPI becomes fully effective, many employers may find themselves out of time to become fully compliant to amongst other considerations, the 8 processing conditions prescribed in the Protection of Personal Information Act.


To be considered compliant the following must be considered and applied in the business of a Responsible Party before 1 July 2021. 

  1. POPI training / awareness sessions for the CEO / MD, managers and others tasked with the company’s POPI compliance project. Have a look on our website for the next POPIA training dates.

  2. Compliance audit to be conducted company-wide per department / division to determine the current processing practices within the organization and to establish what needs to be done to be compliant.

  3. Correction of contraventions as identified, and to introduce reasonable technical and organizational measures to prevent the loss or unauthorized access of Personal Information.

  4. Introduction of Data Subject rights and consent in the business through policies and consent clauses / paragraphs / contracts.

  5. The introduction of a PAIA manual (Promotion of Access to Information Act) that incorporates data subject rights and participation in terms of POPIA. This manual must be published on one of the company’s websites. It is also important to note that the current exemption granted by the Minister of Justice for some business to not have such a manual in place currently, expires at the end of June 2021.

  6. General staff POPI policy and legislation awareness training.

  7. Registration of the company’s Information Officer (the CEO, MD or any person acting in such position).

  8. Follow-up assessment on compliance measures and adherence thereto.


It is important to note that no institution, not even the Information Regulator, can “accredit” any Responsible Party in South Africa to be compliant in terms of legislation. Compliance (or otherwise) will only be determined should an investigation be launched by the Information Regulator following a complaint. Should such an investigation confirm a lack of compliance, consequences such an administrative fine not exceeding R10m may follow (which one may luckily pay off in instalments). Further to this those whose rights are infringed upon by a Responsible Party not adhering to the requirements of POPIA, may also institute civil proceedings. Such  proceedings may result in compensation being awarded for loss, as well as aggravated damages determined at the discretion of the court.


In terms of section 19 of the Act, the Responsible Party (business owner / employer) is required to introduce reasonable organizational and technical measures to secure the integrity and confidentiality of Personal Information. The organizational measures referred  to above includes inter alia both internal and external policies to introduce the principle of protection of personal information in the workplace, as well as the rights of data subjects.


To allow you more time to focus on your business, the author of this article compiled a bundle of detailed policies for your business, ready to use. This includes all relevant forms to be used and a template document with draft consent clauses / paragraphs / rules  to be incorporated into service and employment contracts, job applications, credit and other applications forms, WhatsApp and Facebook groups / pages, and Independent Contractor agreements.


Also included is an Operator Agreement as required in terms of section 21 of the Act and a consent letter for existing clients / service providers, to agree to the continued processing of their Personal Information beyond June 2021.


The policies bundle includes: 

  • Privacy notice template to be published on your website.

  • Personal information protection policy.

  • Personal information retention policy.

  • Data breach policy.

  • Data breach register - form.

  • Data breach report - form.

  • Data security policy.

  • Data subject access request policy and procedures.

  • Data subject access request forms.

  • Processing agreement with third parties as Operators - contract.

  • Data subject participation - draft consent paragraphs / clauses to be incorporated into service and employment contracts, job applications, credit and other applications forms, WhatsApp and Facebook groups / pages and Independent Contractor agreements

  • Guidelines on the appointment of deputy information officers, inclusive of appointment letter.


For only R3750 you can now order you set of POPI policies, ready to use. Contact Jan du Toit for further assistance at [email protected]









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19 November 2021 (09:00 - 12:00)

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25 November 2021 (08:30 - 16:00)

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POPIA: Protection of Personal Information Act

26 November 2021 (09:00 - 12:00)

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