Description
Award issued after expiration of 30 days – using retrenchment as pretext for termination – discretion – compensation for retrenchment.
- An award of the Commission for Mediation and Arbitration issued after expiry of 30 days contrary to Section 88(9) of the Employment and Labour Relations Act (ELRA) is not fatal.
- Some unscrupulous employers are using retrenchment as pretext for termination.
- Discretion should be exercised judiciously.
- Arbitrator found that retrenchment was for valid reasons and awarded employees compensation of 4 months’ salary – wrong. That award is not provided for under the relevant labour laws or parties’ agreements.