Retrenchment of one employee

 

Retrenchment typically refers to the process of laying off multiple employees due to operational requirements. However, there might be situations where a company retrenches only one employee. While less common, it’s not entirely impossible. Here’s a breakdown of some scenarios where this could occur:

 

 

Possible Reasons for Retrenching One Employee

 

• ✅ Redundant Position: If a company undergoes restructuring and a specific position becomes redundant, they might retrench the sole employee holding that role. For this to be considered fair, the redundancy must be genuine and not created to target a specific employee.

 

• ✅ Performance Issues: If the single employee in a specific role consistently underperforms and documented corrective actions haven’t improved the situation, retrenchment might be a last resort after following proper disciplinary procedures.

 

• ✅ Misconduct: Serious misconduct by the sole employee in a role could be grounds for dismissal without notice and severance pay, depending on the severity of the misconduct and the company’s policies.

 

• ✅ Company Closure: In rare cases, a company might be forced to close down entirely. If this is the case, the single employee would likely be retrenched along with the closure.

 

 

Important Considerations for Single Employee Retrenchment

 

• ✅ Fairness: Even with one employee, the retrenchment process should still be fair. This might involve providing notice (as per employment contract or BCEA minimums) and severance pay based on factors like length of service.

 

• ✅ Legal Compliance: The retrenchment must comply with labour laws, including consultation requirements (even if it’s just informing the employee) and providing proper notice and potential severance.

 

• ✅ Alternatives: The employer should be able to demonstrate they explored alternative options, such as retraining the employee for a different role within the company, before resorting to retrenchment.

 

Generally, retrenching a single employee is less common and can be more legally scrutinized compared to retrenching multiple employees. If you find yourself in this situation, consulting with a labour lawyer is recommended to understand your rights and potential options. They can advise you on the fairness of the retrenchment process and whether you might be entitled to additional compensation.

 

Here are some additional resources that might be helpful:

• 📌 Department of Labour – South Africa: https://www.labour.gov.za/
• 📌 Advice on Retrenchment in South Africa: https://smelaboursupport.org.za/download/guideline-termination-of-services-conduct/