After six weeks of lockdown – with conditions forced on us – many people are more than merely fraying at the edges. 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. Legal News Labor Act, 2017 (2074) – Major Highlights . “That would be far more beneficial because the employer will be able to cancel a disputed directive and reapply with the correct information. It’s money that I have worked hard for so I am definitely waiting for it.” I feel like that’s a retrenchment call you can actually look forward to. ! “While retrenchment is an extremely sensitive matter, a high level of discernment, accuracy and professionalism will go a long way in ensuring that the best tax outcome is achieved,” Oosthuizen said. US$2.8 tn package (circa 10% of GDP). 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. What will the retrenched employees take away financially. Be sure to read our Basic Legal Advice on Dealing with Unfair Dismissals. 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) 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. 1.7 lakh crore to reduce the burden of the poor people as a result of Covid-19 imposed lockdown. Running parallel are violent and symbolic attacks on Asians and Asian Americans around the world particularly in the United States, Europe and Australia. 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 . This is important to note in light of the fact that COVID has led to various forms of retrenchment and reduction in staff levels. The Labour Law allows for a minimum payment of one week per completed year of service. During the lockdown, and where practical, the consultative processes can be conducted by e-meetings, e-mails or over the telephone. It is a simple and easy process, but should be done before the payment is made to the retrenched employee.”. Anger, frustration, anxiety, depression… ANGRY!! 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. First, there may be a tendency to use suppliers in more expensive locations (but closer to major markets) by replacing labour with capital. As such these sites can remain open during the current lockdown. If this is the case, you can approach the CCMA or a Bargaining Council within 30 days of retrenchment. There have also been cases for employers trying to justify retrenchments with the fact the business is being bought by a larger corporation. Comments section policy: Any attacks on BusinessTech, its journalists, or other readers will result in a ban. During the announcement of Budget 2020 last month,?Deputy Prime Minister Heng Swee Keat rolled out a?Stabilisation and Support Package which aims to stabilise the economy and support workers and enterprises, by helping workers to stay in their jobs and enterprises with cash flow. 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. Thank you for the professionalism you've shown during this lockdown period. During COVID-19, Government of Pakistan introduced “Smart Lockdown” to contain the spread of the disease with the need to keep the economy functional. Read: South Africa is changing its marriage laws. Victorian Government assistance for businesses in response to coronavirus (COVID-19). A key focal point for those seeking links with Malaysian manufacturers for investment, trade and services. 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. 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. This is putting a strain on majority of the South African population. Supports households, businesses and governments. […] Being retrenched during the COVID-19 Lockdown, should I just accept and let go or should I fight this? Normal Area as on date: Average area during the corresponding period of 2014-15 to 2018-19. The police may have been overwhelmed and decided that more fighting would have been counterproductive. Make sure you reach out to a partner or close friend if you need someone to help you process your emotions. Source: Ministry of Agriculture and Farmers’ Welfare 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). REDUNDANCY VS RETRENCHMENT. This part of the process is all about attempting to reach a consensus between all involved. 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 … Lawyer's Assistant: What steps have you taken so far? Tax of 18% is charged on income up to R250,900. 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 … When provisioning packages are applied to a device, a status screen indicates successful or failed provisioning. Make sure you reach out to a partner or close friend if you need someone to help you process your emotions. This is where employers often get it wrong. 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. It is common cause that many people have received pay-cuts, retrenchment packages and some have even lost their jobs. Now that we are in national lockdown, many consumers are declaring that their earnings are at risk. September 7, 2017. 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. This is something your previous employer can assist you with – find out how here. It matters because laws vary by location. Is there a possibility of avoiding dismissals? 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. Sitting comfortably in the middle of affordable legal insurance cover options is our most popular package – the Platinum Policy. Read all the the latest career advice articles and other career information, tips and advice on Talent 360 to further your career. 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. 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. Signs are what business owners need to communicate messages and silently seed their brands in potential customers’ minds. Subsequently, MHA order dated 17 May did not mention payment of wages or prohibition of retrenchment during the lockdown. It is advisable to have the final agreement in writing. There are various things to discuss at the retrenchment consultation. More details on Singapore’s measures for inbound travellers in relation to COVID-19 can be found here. 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. 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 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. 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. COVID-19: Lockdown Impact on Informal Sector in India. The payment package: Severance pay, other amounts, and how they are calculated. 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 … Your employer may offer you a better package if you offer to be one of those who is retrenched - taking voluntary retrenchment. Brief Note. 1. 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. Its … For example, would demotions be possible – at least that way income is still somewhat guaranteed. This is the point where employers have to consider retrenchments, which can have severe emotional and financial consequences for employees. Today’s top news: Biden announces travel restrictions. 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. 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). Democrats Use Capitol Incident To Suppress Political Dissent. It does not have to be a formal legal document. 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). “Your employer’s tax calculation will be wrong if he is not made aware of the amounts received previously. 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. The voice of the Malaysian manufacturing industry. As mentioned before, being retrenched isn’t just as simple as your employer giving you notice. Sustained downpours in the catchment area of t 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. EMPLOYMENT CHALLENGES AFTER LOCKDOWN. 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. 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Of course, this process isn’t just as simple as informing an employee of their retrenchment and giving them a month’s notice. “It has also happened that employers pay a severance amount but neglect to apply for a tax directive. On 25 March 2020, the Department of Transport issued a statement by the Minister of Transport, Fikile Mbalula. SABC: Cut jobs or collapse (News) ... arms maker Denel. Where the retrenchment was based on any form of discrimination (for example, because of someone’s race, religion, gender, sexual orientation etc. Employees are not obliged to accept a voluntary retrenchment offer if the payment terms are not acceptable,” Oosthuizen said. At the best of times, school fee collections can be challenging. The Income Tax Act allows for a far more favourable tax treatment on retirement, death or severance benefits. Retrenchment Benefit. This means that the full R500,000 tax exempt amount is no longer available, Oosthuizen said. When he was retrenched he claimed that this was unfair as the employer had not consulted with him. April 2, 2020 . 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. 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. Banning of non-US citizens or residents who have been to China, Iran and some EU countries in the previous 14 days. Click here to download the documents free of charge! Still, the non-refundable advances are permissible only for specific reasons like marriage, housing, etc. Using these cmdlets, you can add provisioning packages, remove provisioning packages and generate log files to investigate provisioning errors. ); technological (can employees be replaced by an automated process or technological developments); or structural (is the company getting a “makeover” and restructuring its processes?). Retrenchment. employment | 14 Apr 2020 BY Brian Patterson AND Audrey Johnson South Africa: Cost-cutting employment alternatives to retrenchment following the extended lockdown. The first R500,000 severance benefit is tax free and the amount above R500,000 up to R700,000 is taxed at 18%. Think of it as a necessary push in the direction of enriching your life with a different working experience. I'm situated in the Gauteng area, South Africa. These scams are most often circulated on social media. 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. These are important in marketing strategy and have been recognized early on by Willie Que, Signarama Philippines President Wesley Que’s father. So, if you feel as though you have been subjected to an unfair retrenchment, you likely have a case for unfair dismissal. “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. tenants and landlords will feel it financially. Only the employer can request the cancellation of a directive when there are errors. Debt may arise when employees neglect to file returns when they are obliged to do so, said Britz. Landlords need also to … Thankfully, there is certainty in the law, which protects the rights of those who are being retrenched. 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. 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 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. The board of the SA Broadcasting Corporation (SABC) is set to make a final decision next week on its retrenchment plans. Once this notification has been sent, the employer must give those affected the opportunity to respond. Simply put, this refers to what the business needs to keep its doors open or significantly reduce losses. 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. 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. Employees are strongly advised to remind the current employer of any previous severance payments or retirement lump sums that was paid to them. South African law, specifically section 189 of the Labour Relations Act, states that employers cannot retrench employees without following due process. The seriousness of the situation has led to increased participation from unions and greater focus on alternatives to retrenchment in an attempt to preserve those jobs that are currently available. Lawyer's Assistant: What state are you in? President Ramaphosa's full coronavirus lockdown ... national disaster and announced a package of extraordinary measures ... employees directly during this period and avoid retrenchment. 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%. Dutch prime minister promises to crack down on anti-lockdown … 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. India, a modern-day bourgeois democracy with socialism sitting uncomfortably in the Preamble, neither faces a civil war nor an invasion of states. 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 … One such error – that can cost a taxpayer dearly – is when the “wrong box” on the directive is ticked, he said. A retrenchment is a form of dismissal from your job. Also, our Platinum Plus policies include a retrenchment benefit for additional peace of mind. 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.”. Let’s dive into the retrenchment process and your legal rights in South Africa. School fee collections during lockdown TPN Blogger 2:48 PM. 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. Companies are still bound by the agreements they have already signed. The government will provide additional help to sectors more directly affected by the outbreak. Equally devastating is the realisation that the employee had outstanding tax debt which will also be deducted from the agreed amount. “When you talk about the retrenchment amount, you have to ask about the tax costs. FOR those who develop mild symptoms of coronavirus, the advice is to stay at home and self-isolate for at least a week. 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. Reduce losses – at least a week note that you are not being fired ; meaning this... Asians and Asian Americans around the world particularly in the middle of affordable legal insurance cover is... Or severance benefits Africa is changing its marriage laws fact the business is being bought a. 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