How to retrench your team in a responsible and sensitive manner, without attracting the attention of Unions or the Media?
Lazada recently retrenched their staff and it was a PR disaster.
Let’s be real: All businesses need to survive, that’s why retrenchment exercises exist. Employees leave organisations for all reasons so it’s not a wrong thing to conduct a retrenchment exercise.
However, many organisations go about it in the wrong way.
Here are some tips to make sure you do it right if you’re planning to cut down on your manpower 👇
Understand the difference between retrenchment and termination of employment relationship.
| Retrenchment Vs. Termination. Did you know the difference?
Retrenchment is the termination of employees because of redundancy or reorganisation of the employer’s profession, business, trade or work. An employee is presumed to have been retrenched if the employer cannot show a plan to fill the vacancy any time soon.
Termination is the termination of an employment relationship which includes retrenchment but also on other grounds such as poor performance or misconduct. It can also be done with or without notice.
What if more than 10 people are being laid off?
You can inform MOM HERE.
The notification must be submitted within 5 working days after your employee is notified about their retrenchment.
What if you are terminating a female professional?
Get a witness to sit in with you during termination process
1) in case the lady accuses you of molestation when you served her the notice
2) In case the female professional refuses to sign termination, the witness will sign and confirm that notice is served even if the female professional is not willing to sign.
This protects you and your company from unnecessary issues from disgruntled employees who were terminated.