Know your rights: Labour expert explains the rules around RETRENCHMENT
Keely Goodall
17 September 2025 | 5:51Retrenchments are a harsh reality faced by many South Africans.

Picture: Pexels.com
702’s Clement Manyathela speaks with Galenoe Modisapodi, a labour law expert.
Listen below:
Retrenchments are framed as a last resort by employers who are facing financial strain.
In recent months, South Africa has seen a wave of retrenchments that have left those left behind nervous about their job security.
Unlike a dismissal, you can be retrenched without any fault on your part, as your employer is just not able to keep employing you, or your role has become redundant.
However, you do still have rights when it comes to retrenchment.
Modisapodi says the law mandates that an employer must start a consultation process as soon as they see retrenchments as a possibility.
This includes engaging with employees either directly or through a representative on what alternatives to retrenchment are available.
RELATED: ‘Jobs bloodbath’ looms as retrenchments threaten 250,000 workers
“Maybe you work two weeks a month or one week a month whilst you retain employment, and hopefully when the economy improves, then you'll be restored to normal work. So that's one of the ways to avoid retrenchment.”
- Galenoe Modisapodi
If it is found that retrenchment is unavoidable, then an employee must be paid out by the employer, usually around one week or two weeks of pay for every year worked.
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