The Consideration of Short Time
It is critical to ensure labour and/or workplace tranquillity / harmony as it will secure stable and peaceful working environment, but what if an employer can no longer pay his employee:
You do not aways have to go the retrenchment route
You may consider the possibility of short time, and it is totally legal
Short time is a temporary reduction in an employe’s working hours, typically due to operational needs and/or economic and/or production factors , it is an alternative to retrenchment , the employees still have a contract with their Employer but work fewer hours and receive reduced pay for a limited period.
The employees may claim for benefits from UIF ( Unemployment Insurance Fund) to help offset the reduction in income .
There is no specific section in the Basic Conditions of Employment Act that governs SHORT TIME, but is well recognised in our labour practice.
The benefits of SHORT TIME , it helps preserve jobs during difficult period, it gives the business a chance to recover and it is less disruptive than retrenchments.
If you need more information or assistance please contact HOUGH BREMNER