Read the following extract and then answer the questions below
Notice of the intention to retrench
Phakama hotel in the Ngamiland District is a company dealing with accommodation and provision
of conferencing facility and registered in Botswana in accordance with the laws of the land. The
company has been into business for 5 years. The company has faced a poor cash flow which has
been exacerbated by Covid-19 as a result its financials started to fall drastically. Other companies
which they source service from are threatening to initiate law suit if they are not paid for the service
rendered.
Phakama has written to the Commissioner of Labour to notify her of their intention to retrench or
reduce its labour force in terms of Section 25 of the Employment Act and to seek guidance on
how to go about the process of retrenchment.
If you were the Commissioner of Labour what advice would you give to Phakama in handling
retrenchment. The guidance should be in line with the Employment Act (20 marks)
As the Commissioner of Labour, I would advise Phakama Hotel to carefully follow the provisions of the Employment Act when handling retrenchment. This includes the following steps:
1. Provide a written notice to the affected employees: Phakama should provide written notice to the affected employees with the reasons for the retrenchment, the date of termination, and the measures that will be taken to mitigate the impact of the retrenchment.
2. Consultation with the affected employees: Phakama should engage in a consultation process with the affected employees or their representatives. This should involve discussing alternatives to retrenchment, such as training or reassignment.
3. Selection criteria: Phakama should ensure that the selection criteria for retrenchment are fair and objective. It should not discriminate against employees based on race, gender, age, or any other factor.
4. Payment of retrenchment packages: Phakama should ensure that the affected employees are paid their retrenchment packages in accordance with the provisions of the Employment Act. This should include severance pay, notice pay, and any other benefits that may be due.
5. Reporting to the Commissioner of Labour: Phakama should keep the Commissioner of Labour informed about the retrenchment process and seek guidance if needed. This will ensure that the retrenchment is conducted in compliance with the law.
Overall, Phakama should handle the retrenchment process with sensitivity and transparency, taking into consideration the impact on the affected employees and following the legal requirements set out in the Employment Act.