n Without Prejudice - Retrenching an over-indebted employee : labour law

Volume 13, Issue 5
  • ISSN : 1681-178X



Ailing businesses often have little or no option but to reduce head count and hence retrench employees. The effects of retrenchment are obviously disastrous not only to the affected employees but also to their families. It is for this reason that the Labour Relations Act, 1995 (the LRA) obliges an employer to provide pre-retrenchment, and to consider post-retrenchment, assistance to retrenched employees. While the LRA was promulgated 10 years prior to the National Credit Act, 2005 (the NCA), it is the intersection between these two pieces of legislation, which we seek to consider in this article.

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