This act regulates the organisational rights of trade unions and promotes and facilitates collective bargaining at the workplace and at sectoral level. To change the law governing labour relations and, for that purpose to give effect to section 27 of the constitution. Section 198 introduces important new rights for labour broker, contract and parttime workers. The labour relations act lra places additional obligations on employers involved in large scale retrenchments. The meaning of dismissal lra section explanation section 1861 a. Provisions of section 197 labour relations act transfer of. 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. Example of a section 189 letter together with a checklist. 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. Of importance in this regard is section 189a of the lra. Section 189 a applies to all employers with more than 50 employees if. To change the law governing labour relations and, for that purpose to give effect to section 23 of the constitution.
Section 189 retrenchment process and the employees. The act provides for the regulation of unfair treatment in the workplace via a provision on unfair labour practices. Revisiting the labour relations act 66 of 1995 danshaw. Section 32 of the principal act is hereby amended a by the insertion in subsection 3 of the following paragraph after paragraph d. 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. The summary is a popular version of the new rights and is aimed at everyone involved. It provides unions seeking to challenge the fairness of a consultation process with. Section 189a1 applies to employers that employ 50 or more employees and intend to retrench. May 24, 2017 the section 189 retrenchment process in terms of the labour relations act section 189 of the labour relations act lra permits employers to dismiss employees for operational requirements. The most crucial of these amendments are briefly addressed below. In order to ensure fairness towards both employer and employee, it is necessary to better understand section 189 of the labour relations act. 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. There are changes that may be brought into force at a future date. The labour relations act lra allows employers to dismiss employees for reasons of operational requirements retrenchment.
Section 197 of the labour relations act lra places heavy responsibilities on the employer who takes over the business or part thereof of another employer as a going concern. Ruling on the deeming provision cliffe dekker hofmeyr. Pdf this study investigates the nature, scope, and dynamics of employment. Application of section 189 and section 189a of the labour relations act 66 of 1995 as amended by mawethu siyabulela rune submitted in partial fulfilment of the requirements for the degree of magister legum in the faculty of law at the nelson mandela metropolitan university supervisor. Section 189 of the labour relations act and, where applicable, the relevant clauses in a bargaining council collective agreement code of good practice on operational requirements regulations passed by the department of labour, relevant state departments and nedlac. Section 197 of the labour relations act states the following. Labour relations amendment act parliament of south africa. It also deals with strikes and lockouts, workplace forums and alternative dispute resolution. The purpose of s189 of the labour relations act is to investigate through the. Employers have tried to broaden the ambit of this form. Basic conditions of employment act see page 189 summary of provisions in the bcea. When does s189a of the lra apply to a retrenchment process. Section 189 dismissals for operational requirements of the labour relations act. The changes to section 198 of the labour relations act 66 of 1995 lra is considered as one of the most significant, as this will deal with the issues regarding temporary employment service or labour brokers as they are more commonly known.
Section 189 2 requires an employer and the other consulting parties to engage in a meaningful. Although the distinction between remuneration and benefits often seems unclear, it is an important distinction, as unfair conduct by an employer in relation to the provision. Fixed term employees the new labour relations amendment. With the advent of welcoming in 2015 so too did we welcome in the arrival of the new labour relations amendment act of 2014 the amendment act which became effective on 1 january 2015. Section 2 of the labour relations act defines operational requirements as requirements based on the economic, technological, structural, or similar needs of an employer. 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. Compensation for occupational injuries and diseases. Jul 01, 2015 provision in section 198a of the labour relations act in a ruling handed down by the commission for conciliation, mediation and arbitration ccma on 29 june 2015 in the matter between assign service pty ltd v krost services and racking pty ltd and another ecel165215 the. Amended labour relations act pdf, document, labour law. Section 189 of the labourrelations act lra governs retrenchments.
Labour relations act, no 66 of 1995 lra, an employer must consult with. The company issued a formal section 189 3 letter to the relevant parties and, because a largescale retrenchment was proposed in terms of the labour relations act 66 of 1995 lra, section 189a was invoked and the consultation process was chaired by a facilitator requested by the company. Remedies for unfair dismissal and unfair labour practice. Dismissal based on an employers operational requirements as per. Your guide to labour law in south africa labour guide. For the purpose of this article i am not going to discuss section 189 a. Identifying consulting parties in terms of section 189 1 of the lra. Employment retrenchment guideline cliffe dekker hofmeyr.
How important is the first statutory consultation notice to employees. Labour act an act to repeal and replace the labour code act and consolidate the law relating to labour. Section 73 allowed the director general to apply to the labour court to make a compliance order an order of court in terms of section 1581 c of the labour relations act if the employer failed to comply with the initial compliance order. An employer who employs 50 or less employees are subject to the process set out in section 189 of the lra, which. Section 23 of the labour relations act, 1995 hereinafter referred to as the. Depending on various factors, the consultation process could last several months and as a result, identifying the correct party. 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. Labour relations act, 66 of 1995 western cape government. 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. The impact of labour relations amendment act 6 of 2014. Rights of trade unions and employers organizations 6. It is hereby notified that the president has assented to the following act which is hereby published for general information.
Summary and explanation of the labour law amendments. Labour relations act, basic conditions of employment act. Section 189 what is section 189 of the labour relations. Rights of employees in terms of section 189 and 189a module 6. When does a contract transfer fall under section 197 of. By johann scheepers certainly no less important than the often repeated statement that the words and expressions used in a statute must be interpreted according to their ordinary meaning is the statement that they must be interpreted in the light of their context. Introduction to dismissals for operational requirements. Extension to non parties of the main collectiveagreement i, mildred nelisiwe oliphant, minister of labour, hereby in terms of section 322 read with section 325 and section 328 of the labour relations act, 1995, declare that the collective. This section which sets out the guidelines for retrenchment procedures currently limits the parties who must be consulted to. 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. Retrenchment consultation and the labour relations act 66.
Labour relations act as amended by labour relations amendment act, no 42 of 1996 proclamation, no 66 of 1996 labour relations amendment act, no 127 of 1998 labour relations amendment act, no 12 of 2002 act to change the law governing labour relations and, for that purpose to give effect to section 27 of the constitution. In terms of section 197 of the labour relations act the lra, the sale of a business as a going concern takes place subject to the provisions of the lra. These are defined as requirements based on economic, technological, structural or similar needs of the employer. Dismissal based on operational requirements, s189 lra. This booklet is a summary of the new section 198 of the labour relations act lra of 2014. The employer may effectively not take a decision to dismiss during the first 30. It also establishes the ccma, labour court and labour appeal court as superior courts, with exclusive jurisdiction to decide matters arising from the act.
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 17 may 2020. With acts you are guaranteed the latest and most up to date resource for your legislative needs. 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 employer terminates the contract of employment with or without notice. Ll labour act chapterll labour act arrangement of sections. This morning, it was reported in the media that productivitysa has called for section 189 of the labour relations act lra to be amended. When should the labour court intervene in a retrenchment process. Title amended labour relations act pdf description the labour relations act by the department of labour no. 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. 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. Summary of the labour relations amendment act 6 of 2014 elrc.
Labour relations amendment act 6 of 2014 south african. Act to change the law governing labour relations and, for that purpose to give effect to section 27 of the constitution. Section 186 of the labour relations act 66 of 1995. Section 189 of the labour relations act lra permits employers to dismiss employees for operational requirements. 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. Global strategy for asthma management and prevention. Article pdf available in journal of vocational rehabilitation 233. 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. Section 189 retrenchment process and the employees proposals in the avoidance andor postponement of retrenchments. Along with numerous changes brought about by the amendment act it also introduced stricter provisions in relation to fixed term employment contracts these amendments can be seen in section 198b 198d. 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. Labour act, 2003 ministry of employment and labour relations. Substantive fairness is proved if the reasons for retrenchment are based on financial, technological or structural needs of the employer and are deemed acceptable. Section 189a large scale retrenchments court lacking jurisdiction to determine fairness of procedure followed section 189 3 notice to managerial employee referring thereto employee recusing himself and not consulting affected employees on behalf of employer after receipt of notice.
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. The labour relations act requires that consultation must take place when the employer contemplates retrenchment. One of the reasons for the 2006 transnet strike was the concern of employees of a transnet subsidiary over their transfer to an entity controlled by the department of transport. The amendment act came into effect on 1 january 2015 and introduces significant changes to the labour relations act 66 of 1995 lra. Interpretation deeming provision labour relations act. Changes that have been made appear in the content and are referenced with annotations. Section 189a of the lra stipulates the procedure for large scale retrenchments.
Section 189 and section 189 a of the lra, should however be read together. Extracts from the labour relations act unfair dismissals. In such instances the employer will have to follow the steps outlined in section 189a of the labour relations act. In this section secondary strike means a strike, or conduct in contemplation or furtherance of a strike, that is in support of a strike by other employees against their employer, but does not include a strike in pursuit of a demand that has been referred to a council if the striking employees, employed within the registered scope of that council, have a material. 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.
Disclosures for members of gina board of directors and science committees can be found at copyrighted material do not. Business to include the whole or part of any business, trade, undertaking or service. Section 189 of the lra lays down a number of strict requirements, the breach of which would. People who must be consulted with in terms of a collective agreement. The act in section 197 thereof deals with the transfer of a contract of employment and defines. Aug 22, 2016 if so, then make sure that you know about and comply with the provisions of the labour relations act.
Part i general provisions as to protection of wages, contracts of employment and terms and conditions of employment protection of wages 1. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. Section 1941 this section deals with the removal of the cap on compensation. What constitutes a benefit by virtue of section 1862 of the. This section applies to employers employing more than 50 employees if.
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 14 may 2020. Labour relations act international labour organization. Act 651 7 the six hundred and fiftyfirst act of the parliament of the republic of ghana entitled labour act, 2003 an act to amend and consolidate the laws relating to labour, employers, trade unions and industrial relations. Among other things, this amendment act protects three categories of nonstandard employees. 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.
The labour relations act back to the act bilingual pdf 1. 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. Labour court held that s1891 has always been interpreted. However, the lras provisions make the implementation of retrenchment, especially largescale retrenchments, extremely difficult.
Nothing in this document or in any related discussions or correspondence shall be construed as an offer, or the basis of any contract, or a representation which may be relied upon by any person except as bcx may expressly agree in writing. Rights of employees in terms of section 189 and 189a of the labour. Alleged unfair dismissal dispute relating to employers operational requirements employer nipping negotiations carried out in the context of section 189 consultations in the butt by dismissing the employee without affording him opportunity to. In terms of the act the following treatments amount to unfair labour practice, i. This is a notification in terms of section 189 3 of the labour relations act 66 of 1995 as amended, in respect of proposed operational requirements. Guided asthma selfmanagement education and skills training. The summary is a popular version of the new rights and is aimed at everyone involved in defending or organising such workers.
This section applies to every company including banking and insurance company. Mar, 2015 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. Section 189 a8b read with section 189 a2a of the lra. Alternatively, if the employer objected to the compliance order by making. On 18 august 2014, the president of the republic of south africa assented to the labour relations amendment act 6 of 2014 amendment act. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. 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. Disclosures for members of gina board of directors and science committee can. Section 189 what is section 189 of the labour relations act. Section 189a 1 applies to employers that employ 50 or more employees and intend to retrench the following number of employees.
So 1995, c 1, sch a labour relations act, 1995 canlii. Trade union and labour relations consolidation act 1992. The labour relations act, 2007 the labour relations act, 2007 arrangement of sections section part 1. Section 186 of the labour relations act 66 of 1995 lra.
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