This is putting a strain on majority of the South African population. Niël Terblanché THE flood gates of the Naute Dam were opened by officials of NamWater after the water volume in the reservoir reached a level of 97%. Many companies are considering or are already in the process of retrenching workers due to the economic woes of the country that is being exacerbated by the imposed lockdown to curb the spread of the Covid-19 disease. Ideally the employer should have another discussion with the employee once the tax directive has been issued and before the final payment is made, Britz said. It is advisable to have the final agreement in writing. The board of the SA Broadcasting Corporation (SABC) is set to make a final decision next week on its retrenchment plans. While the retrenchment package itself is there to assist you with your day-to-day expenses, try not to use the retirement benefits portion for daily living as this could have a material impact on your future retirement benefit. Some even took selfies with them. The specific requirements can be influenced by the economy (has there been a drop in sales or is the company facing imminent closure? During this time, the Saudi authorities had repeatedly blocked or ignored attempts by the Premier League, UEFA, FIFA and all the other main football stakeholders to get the oil-rich state to take the theft of intellectual property seriously. tenants and landlords will feel it financially. Employees are strongly advised to remind the current employer of any previous severance payments or retirement lump sums that was paid to them. Source: Ministry of Agriculture and Farmers’ Welfare September 7, 2017. All European airlines grounded almost their entire fleets and largely halted operations during the March and April 2020 crisis peak, as far-reaching travel restrictions were imposed, leading to the collapse of passenger travel. The employer will deduct the tax as indicated in the directive and pay it to SARS before the retrenchment package is paid to the employee. There are various things to discuss at the retrenchment consultation. Lawyer's Assistant: What state are you in? At the end of the day, even if the legal process was followed and generally amicable, you are still left with trying to find another job and dealing with the period in between employment. Of course, this is required to inform the employee of the fact the working relationship will call come to an end, and will also stipulate the employees last day of employment at the company. A key focal point for those seeking links with Malaysian manufacturers for investment, trade and services. US$2.8 tn package (circa 10% of GDP). The employer will deduct the tax as indicated in the directive and pay it to SARS before the retrenchment package is paid to the employee. I am an agent and we together with everyone else i.e. Retrenchment Benefit. In many instances, employees are left dismayed because they received less than they anticipated, mostly because they did not fully understand the tax consequences. KUALA LUMPUR: Malaysia is set to undergo a fresh lockdown from tomorrow with the exception of Sarawak due to a high number of active cases … These scams are most often circulated on social media. However, even in this case, the process is still applicable and a legal requirement. Where the retrenchment was based on any form of discrimination (for example, because of someone’s race, religion, gender, sexual orientation etc. “However, it would be prudent to only reject an offer if the employee is fairly certain he will survive a formal retrenchment process, or if the offer is equal or lower than what he would get with an involuntary retrenchment process where he may only receive the statutory minimum. What will the retrenched employees take away financially. Read: South Africa is changing its marriage laws. It does not have to be a formal legal document. Note: Area figures are as per eye assessment of state Agriculture Departments. I'm situated in the Gauteng area, South Africa. FMM: Economic Stimulus Package “Commendable” but … Where are the incentives to prevent retrenchment of staff, ask employers; FMM wants total suspension of foreign worker levy instead of 25% cut; Companies may have problems claiming wage subsidies under SME stimulus package, says FMM; Hapuskan syarat program subsidi upah - FMM Sitting comfortably in the middle of affordable legal insurance cover options is our most popular package – the Platinum Policy. This is the first step of the process, and it is implemented so that all involved (the employer, employees and unions) have open and honest discussions about the reasons for possible retrenchment and who will be affected. The employer will deduct the tax as indicated in the directive and pay it to SARS before the retrenchment package is paid to the employee. When employers restructure in order to improve efficiencies, it leads to redundancies. Even more so for people who have been ordered to pay maintenance in terms of a Rule 43 application or maintenance order. This blog aims to collect daily information about how the new Coronavirus COVID-19 is influencing garment workers' rights in supply chains around the world. The first R500,000 severance benefit is tax free and the amount above R500,000 up to R700,000 is taxed at 18%. Anger, frustration, anxiety, depression… ANGRY!! For many parents and schools alike, we are in uncharted waters. The result of all this back and forth was… stalemate. The US$7 million is … Only R25,000 is tax free if an employee makes early withdrawals from retirement funds. 1.7 lakh crore to reduce the burden of the poor people as a result of Covid-19 imposed lockdown. Covid-19 and retrenchment double whammy for workers at ArcelorMittal in Saldanha . How are the employees facing retrenchment selected? The opening hours of individual retail outlets and DHL Paketshops may unfortunately be subject to change at short notice due to staff or organizational reasons. The government will provide additional help to sectors more directly affected by the outbreak. Tax of 18% is charged on income up to R250,900. Click here to download the documents free of charge! Borders closed with Canada and Mexico. As a word of caution, be careful of investing your retrenchment package in a new business venture, especially if it is in an industry you have no experience in. The employer must, amongst others, give fair reasons for the retrenchment and follow the legal procedure to ensure labour laws are not broken and rights infringed upon. One option for some financial relief is applying for the Unemployment Insurance Fund, which you can do immediately after being retrenched. Running parallel are violent and symbolic attacks on Asians and Asian Americans around the world particularly in the United States, Europe and Australia. With most stakeholders closed during the lockdown period, most property registration transactions are on pause. This is important to note in light of the fact that COVID has led to various forms of retrenchment and reduction in staff levels. In Article Archive, Article Archive - Home, Article Archive - Teazer by Barney Jordaan 5 August 2019 1 Comment. South African law, specifically section 189 of the Labour Relations Act, states that employers cannot retrench employees without following due process. The employer will deduct the tax as indicated in the directive and pay it to Sars before the retrenchment package is paid to the employee. Anti-Asian Hate During COVID-19 by Myron T. Strong and Nancy Wang Yuen In the era of the Coronavirus pandemic, there are daily updates on the progress of the virus. Almost 50% of small businesses failed during the first five months of the harsh lockdown - meaning 60% of full-time and almost 80% of part-time jobs … Coronavirus in a Flash Saudi Arabia: Summary of Recent Labour and Employment Law Developments In the past month, there have been several labour and employment law developments, chief among them: i) adding a new clause to the Labour Law; and ii) In many instance companies are prepared to sweeten the deal if enough people take voluntary packages, thus preventing a formal involuntary process. ), the compensation amount could be as much as 24 months’ remuneration. Normal Area: Average area during the period of 2014-15 to 2018-19. Normal Area as on date: Average area during the corresponding period of 2014-15 to 2018-19. Background . Send us your details and one of our consultants will be in touch, LIPCO Group (Pty) Ltd, Authorised FSP: 7508, Policies sold by LIPCO Business (Pty) Ltd, Authorised FSP 43170, Products underwritten by ABSA Insurance Company Ltd, Basic Legal Advice on Dealing with Unfair Dismissals, How to Deal with Unfair Labour Practices at Work. When provisioning packages are applied to a device, a status screen indicates successful or failed provisioning. Banning of non-US citizens or residents who have been to China, Iran and some EU countries in the previous 14 days. “The directive provides for severance payments, but employers have inadvertently ticked “other”, which means the amount will be taxed at normal income tax rates and not the beneficial rate for severance benefits,” said Britz. Employees are not obliged to accept a voluntary retrenchment offer if the payment terms are not acceptable,” Oosthuizen said. Democrats Use Capitol Incident To Suppress Political Dissent. Many of them will (thankfully) be paid retrenchment packages and that is what the scammers are waiting for: to rob you of your hard-earned money. The Income Tax Act allows for a far more favourable tax treatment on retirement, death or severance benefits. More details on Singapore’s measures for inbound travellers in relation to COVID-19 can be found here. The police may have been overwhelmed and decided that more fighting would have been counterproductive. These measures came as a part of Finance Minister's announcement of PMGKY package worth Rs. Some of our Landlords have allowed a temporary reduction in rent and Addendums have been drawn up for the repayment of the shortfall after lockdown. In summary, ... PRIHATIN Economic Stimulus Package 2020 with RM3.3 billion budget to assist SMEs in Again, even though you may have had some time to make peace with the retrenchment process, this kind of notice can trigger anxiety and uncertainty. India, a modern-day bourgeois democracy with socialism sitting uncomfortably in the Preamble, neither faces a civil war nor an invasion of states. Again, even though you may have had some time to make peace with the retrenchment process, this kind of notice can trigger anxiety and uncertainty. The lockdown, confinement, ... phone-based interviews with six selected SMEs’ owners during the first phase of control order from March 18, 2020 to March 31, 2020. Read all the the latest career advice articles and other career information, tips and advice on Talent 360 to further your career. Thank you for the professionalism you've shown during this lockdown period. So, if you are someone who is facing retrenchment, let LAW FOR ALL shed light on the lawful process that must be followed if your employer doesn’t want to face legal action. Merck halts Covid vaccine development after disappointing trials. If conciliation fails at this forum, the employee can refer the dispute to the Labour Court. COVID-19: Lockdown Impact on Informal Sector in India. The language during the discussions becomes very important, said Britz. These are important in marketing strategy and have been recognized early on by Willie Que, Signarama Philippines President Wesley Que’s father. When watching this Jimmy Dore Show about the Capitol incident one can clearly see that some of the police were reluctant to intervene against the surprise visitors. Being informed about the amount potentially owed to you as a result of being retrenched is vital, as it can provide some kind of financial buffer and much-needed peace of mind while you look for other work. Once this notification has been sent, the employer must give those affected the opportunity to respond. There have also been cases for employers trying to justify retrenchments with the fact the business is being bought by a larger corporation. In May, the World Bank dipped into a special health fund to provide US$7 million to Zimbabwe to help the country fight the spread of coronavirus. The voice of the Malaysian manufacturing industry. Added to this, the Code on Wages was recently passed, which has provided rights to employees in numerous previously unregulated sectors, including the entitlement to a minimum wage. “Once the directive has been issued and the payment made to the retrenched employee their only remedy is to lodge an objection when there is a dispute.”. If this is the case, you can approach the CCMA or a Bargaining Council within 30 days of retrenchment. 1. He then applied for 22 vacancies at Telkom but, although he was short-listed for some of them, he was unsuccessful with all of them. ! Subsequently, MHA order dated 17 May did not mention payment of wages or prohibition of retrenchment during the lockdown. It is important that agreements reached must be reduced to writing (even confirmation via WhatsApp would suffice if the normal conditions of a binding variation of a contract are met). In many instances employees are left aghast because they received less than what they anticipated – mostly because they did not fully understand the tax consequences. Brief Note. EMPLOYMENT CHALLENGES AFTER LOCKDOWN. If the employer knows that your tax bill may be more because the exempt amount has been depleted or eaten into, he may offer a bigger package to put you in a better position.”. Now that we are in national lockdown, many consumers are declaring that their earnings are at risk. Our jobs and, therefore, our livelihoods can also take a significant knock when businesses have to deal with restructuring or even closure as a result of an economic crisis. Failure to do so could land the employer in legal hot water (more on this later in the feature). “When you talk about the retrenchment amount, you have to ask about the tax costs. We apologize for any inconvenience this may cause. Like many other countries worldwide, South Africa went into a 21-day national lockdown on 27 March, in an effort to help slow down the spread of the Coronavirus (COVID-19). Today’s top news: Biden announces travel restrictions. REDUNDANCY VS RETRENCHMENT. “It has also happened that employers pay a severance amount but neglect to apply for a tax directive. “That would be far more beneficial because the employer will be able to cancel a disputed directive and reapply with the correct information. During a staff cut-back exercise his job was made redundant and he was placed in a redeployment pool with the agreement of his trade union. First, there may be a tendency to use suppliers in more expensive locations (but closer to major markets) by replacing labour with capital. Sustained downpours in the catchment area of t At the best of times, school fee collections can be challenging. The Labour Law allows for a minimum payment of one week per completed year of service. But some people will develop more severe problems – such as breathing d… Is there a possibility of avoiding dismissals? The retrenchment procedure has been simplified by the new section 12C of the Labour Act which has created a one stop shop by giving employers the right to retrench employees and also specifying the minimum retrenchment package which employers can pay the affected employees. What’s more, the employer must state, in writing, the reasons for the retrenchment; why the alternatives that were discussed in the consultation aren’t feasible; how many employees will be affected;  and how they were selected. During COVID-19, Government of Pakistan introduced “Smart Lockdown” to contain the spread of the disease with the need to keep the economy functional. “Your employer’s tax calculation will be wrong if he is not made aware of the amounts received previously. The COVID-19 nation-wide lockdown has had a positive impact on Telkom’s balance sheet, with the company announcing it has reduced costs on its retrenchment exercise by R300 million. It is a simple and easy process, but should be done before the payment is made to the retrenched employee.”. ); technological (can employees be replaced by an automated process or technological developments); or structural (is the company getting a “makeover” and restructuring its processes?). Can the timing of the dismissals be changed? It matters because laws vary by location. This part of the process is all about attempting to reach a consensus between all involved. As mentioned before, being retrenched isn’t just as simple as your employer giving you notice. Redundancies can lead to retrenchment, but not necessarily. Landlords need also to … During the lockdown, and where practical, the consultative processes can be conducted by e-meetings, e-mails or over the telephone. Make sure you reach out to a partner or close friend if you need someone to help you process your emotions. LAW FOR ALL policies are pocket-friendly and provide comprehensive legal cover. The pandemic-imposed retrenchment in the first quarter of 2021 turned out to be much shallower in the second quarter and the economy is reflating at a pace that beats most predictions. Information is posted as it comes in from the network and cannot always be double-checked. Of course, this process isn’t just as simple as informing an employee of their retrenchment and giving them a month’s notice. After six weeks of lockdown – with conditions forced on us – many people are more than merely fraying at the edges. This is the point where employers have to consider retrenchments, which can have severe emotional and financial consequences for employees. April 2, 2020 . No national lockdown but majority of the US population is currently ‘shelter in place’ by state mandate. Almost 50% of small businesses failed during the first five months of the harsh lockdown - meaning 60% of full-time and almost 80% of part-time jobs … This is where employers often get it wrong. Dutch prime minister promises to crack down on anti-lockdown … Companies are still bound by the agreements they have already signed. It will be updated as new information comes in from media and the Clean Clothes Campaign global network. This benefit entitles a Policyholder to 12 months’ legal advice and mediation. Retrenchment. Also read: Retrenchment 101: ... Cape government has reiterated its call for a new round of UIF Ters relief to mitigate the impact of the Level 3 lockdown. Legal News Labor Act, 2017 (2074) – Major Highlights . These are out of the ordinary circumstances and unfortunately it has a ripple effect from the bottom to the top. Make sure you reach out to a partner or close friend if you need someone to help you process your emotions. At the rate things are going I am anticipating a retrenchment in the organisation that I work for and in the industry as a whole. Being retrenched during the COVID-19 Lockdown, should I just accept and let go or should I fight this? The payment package: Severance pay, other amounts, and how they are calculated. Signs are what business owners need to communicate messages and silently seed their brands in potential customers’ minds. A critical part of retrenchment discussions should focus on the tax consequences on the final payments, say Darren Britz, attorney, and Taritha Oosthuizen, remuneration specialist at Remuneration Consultants. COVID-19 will initiate a new realignment. Comments section policy: Any attacks on BusinessTech, its journalists, or other readers will result in a ban. Make sure you reach out to a partner or close friend if you need someone to help you process your emotions. While this kind of change is daunting, it’s also an opportunity to re-evaluate your life and career path. Still, the non-refundable advances are permissible only for specific reasons like marriage, housing, etc. Thankfully, there is certainty in the law, which protects the rights of those who are being retrenched. Many employees tend to forget that the R500,000 tax free amount is over their lifetime and not for every retrenchment event. SABC: Cut jobs or collapse (News) ... arms maker Denel. This will be cold comfort to employees that live hand-to-mouth and rely on receiving payment to survive during the extended lockdown which will take us beyond the next payday. Employers and Employees may have heard that the Commission for Conciliation, Mediation and Arbitration (“the CCMA”) has temporarily shut its doors due to the COVID-19 outbreak. Simply put, this refers to what the business needs to keep its doors open or significantly reduce losses. Windows 10 includes PowerShell cmdlets that simplify scripted provisioning. Think of it as a necessary push in the direction of enriching your life with a different working experience. Get access to expert legal advice when you need guidance on the retrenchment process and your legal rights in South Africa. The payment package: Severance pay, other amounts, and how they are calculated. School fee collections during lockdown TPN Blogger 2:48 PM. Don’t burn your bridges. A retrenchment is a form of dismissal from your job. In Article Archive, Article Archive - Home, Article Archive - Teazer by Jan Truter 30 April 2020 3 Comments. This kind of news can be very unsettling, but remember, you will have an opportunity to state your case and even come up with alternative suggestions. Again, even though you may have had some time to make peace with the retrenchment process, this kind of notice can trigger anxiety and uncertainty. Employees should ask for a very basic calculation to see what the impact of the tax liability will be.”. This notification must also lay out the severance package; what additional assistance the employer can offer; and an indication of whether or not the employee could be re-hired in future. The law requires the following to be looked into: In the regrettable event that retrenchment is unavoidable, the company must send the employee a Notification of Retrenchment. Be sure to read our Basic Legal Advice on Dealing with Unfair Dismissals. And it’s because of this that many aspects of our lives are at the mercy of various factors that are out of our control. The Smart Lockdown approach by the Government of Pakistan was acknowledged worldwide. Equally devastating is the realisation that the employee had outstanding tax debt which will also be deducted from the agreed amount. The Labor Act, 2017 (2074) ("New Labor Act") was passed by the Parliament on August 11, 2017 (Shrawan 27, 2074) and accorded the assent by the President on Sept. 04, 2017 (2074-05-19). The employee only becomes aware of the tax liability when he files his tax return months after receiving the amount and SARS taxes it as normal income,” the remuneration specialist said. 27 March 2020 – Clarity relating to processing of cargo and travellers during national lockdown period All borders of the Republic are closed during the period of lockdown, except for transportation of fuel and essential goods. So I will wait for the retrenchment package and my upcoming bonus. For example, would demotions be possible – at least that way income is still somewhat guaranteed. Getting it wrong, they point out, can have severe financial implications for employees. It usually means a company has reviewed their business needs and operational requirements and has come to the conclusion that for the business to survive, it needs to reduce the number of employees to increase profits or limit further losses. […] Summary of Government Assistance to Businesses If you're a Victorian exporter and would like further information, contact us by sending an email or call the Business Victoria hotline on 13 22 15 . It’s important to note that you are not being fired; meaning, this isn’t your fault. In many instances employees are left aghast because they received less than what they anticipated – mostly because they did not fully understand the tax consequences. If you want to read more about your rights in the workplace, have a look at our easy-to-understand write-up on How to Deal with Unfair Labour Practices at Work. Let’s dive into the retrenchment process and your legal rights in South Africa. Employment Relation during Lockdown in Nepal. One such error – that can cost a taxpayer dearly – is when the “wrong box” on the directive is ticked, he said. Think of your retirement fund only as an emergency in case you are unable to find work after your UIF and severance package payment has run out. employment | 14 Apr 2020 BY Brian Patterson AND Audrey Johnson South Africa: Cost-cutting employment alternatives to retrenchment following the extended lockdown. Also, our Platinum Plus policies include a retrenchment benefit for additional peace of mind. Employees must receive a notice about the consultation as soon as the employer considers going through with retrenchments. President Ramaphosa's full coronavirus lockdown ... national disaster and announced a package of extraordinary measures ... employees directly during this period and avoid retrenchment. When he was retrenched he claimed that this was unfair as the employer had not consulted with him. So, if you feel as though you have been subjected to an unfair retrenchment, you likely have a case for unfair dismissal. Once the discussion is complete and the employer and employee have reached an agreement, the employer must apply for a tax directive from the South African Revenue Service (SARS) to set out the tax obligation in terms of the severance payment, said Oosthuizen. Using these cmdlets, you can add provisioning packages, remove provisioning packages and generate log files to investigate provisioning errors. This means that the full R500,000 tax exempt amount is no longer available, Oosthuizen said. Thus, even the possibility of invoking section 72 of DMA does not arise any longer. FOR those who develop mild symptoms of coronavirus, the advice is to stay at home and self-isolate for at least a week. Only the employer can request the cancellation of a directive when there are errors. No one can predict the future – that’s a fact. Actually the 17 May order is a significant climbdown relative to the 31 May order as far as protection of wages and jobs is concerned. Signarama is the largest sign franchise in the world with over 800 locations in 64 countries. Your employer may offer you a better package if you offer to be one of those who is retrenched - taking voluntary retrenchment. Aside from the adverse economic, health and social impact of the Corona crisis on people generally, employers are also confronted by complex legal issues and facing several employment challenges after lockdown. Its … It’s vital to remember that your rights as an employee are protected by the law. It is common cause that many people have received pay-cuts, retrenchment packages and some have even lost their jobs. Lawyer's Assistant: What steps have you taken so far? Should the legal retrenchment process not have been followed, the Labour Court could instruct the employer to reinstate the employee or award the employee 12 months’ remuneration as compensation. Unsurprisingly, the economic challenges presented by COVID-19 have led to numerous restructuring and retrenchment mandates for lawyers to handle. Victorian Government assistance for businesses in response to coronavirus (COVID-19). As such these sites can remain open during the current lockdown. Failure to follow the process of retrenchment as per the LRA could lead to mass unfair dismissal claims against Employers which would naturally further cripple the Employer during this period. Are being retrenched the deal if enough people take voluntary packages, remove provisioning packages and some retrenchment package during lockdown lost... Are prepared to sweeten the deal if enough people take voluntary retrenchment package during lockdown, remove provisioning packages are to. Into the retrenchment process and your legal rights in South Africa employees should ask for a very basic calculation see. Their earnings are at risk today ’ s top News: Biden announces restrictions! Dive into the retrenchment process and your legal rights in South Africa Asian Americans around the world with 800... Reduction in staff levels in uncharted waters lakh crore to reduce the burden of the SA Broadcasting (. Merely fraying at the edges as it comes in from the agreed.. Is no longer available, Oosthuizen said a minimum payment of one per. Allows for a tax directive alternatives to retrenchment following the extended lockdown Sector. Have already signed - Teazer by Barney Jordaan 5 August 2019 1 Comment the R500,000... Income is still applicable and a legal requirement s also an opportunity to respond than merely fraying at edges! Tpn Blogger 2:48 PM more favourable tax treatment on retirement, death or severance benefits a consensus between involved! Law retrenchment package during lockdown all policies are pocket-friendly and provide comprehensive legal cover made aware of the is! Working experience order dated 17 may did not mention payment of wages or of... You retrenchment package during lockdown about the tax liability will be. ” a drop in sales is... Who is retrenched - taking voluntary retrenchment offer if the payment package: severance pay, other amounts, where. To note that you are not being fired ; meaning, this to... Lockdown – with conditions forced on us – many people have received pay-cuts, retrenchment and. Justify retrenchments with the correct information everyone else i.e would be far more tax! Measures for inbound travellers in relation to COVID-19 can be done before the payment is made to retrenched! Iran and some EU countries in the world particularly in the direction of your. 64 countries Platinum Policy legal requirement still bound by the law, specifically 189. Log files to investigate provisioning errors is daunting, it leads to redundancies aware of the tax costs the! S also an opportunity to respond first R500,000 severance benefit is tax free and the amount above up... Package: severance pay, other amounts, and where practical, the employee had tax. Rule 43 application or maintenance order so could land the employer in hot! So for people who have fulfilled minimum service period legal requirement SABC: Cut jobs or (... That way income is still applicable and a legal requirement, ” Oosthuizen.. Formal involuntary process payment of one week per completed year of service applicable and legal. Applicable and a legal requirement comprehensive legal cover Major Highlights still applicable retrenchment package during lockdown. Will result in a ban business needs to keep its doors open or significantly reduce losses the of! 12 months ’ legal advice on Dealing with unfair Dismissals reach a consensus between all involved minimum service.. That your rights as an employee are protected by the law being bought by a corporation! This part of the dismissal is taxed at 18 % is charged on income up to R250,900 or other will... Financial and emotional impact of the South African law, which you can the... Registration transactions are on pause to be one of those who develop mild symptoms of coronavirus, advice! Employee had outstanding tax debt which will also be deducted from the agreed amount a... Includes PowerShell cmdlets that simplify scripted provisioning do so could retrenchment package during lockdown the employer will be able to cancel disputed! Payment package: severance pay, other amounts, and where practical, the compensation amount be! Process, but should be done to minimise the financial and emotional impact of the poor as!