Menu

Practice 02 · s189, unions and bargaining

Retrenchments, unions and collective bargaining

A lawful and humane process for the hardest decision a business makes.

Book a consultationUrgent CCMA help

What does this practice cover?

LabourLink runs retrenchment consultations under sections 189 and 189A of the Labour Relations Act, negotiates with trade unions, prepares for strikes and lockouts, and drafts mutual separation and settlement agreements, so that each step is on the record before anyone asks to see it.

The law it rests on

Official texts linked. Last reviewed 17 October 2026.

Managers seated around a conference table during a consultation meeting
Photograph: Mikhail Nilov on Pexels.

What is included

  • Section 189(3) notices and written disclosure
  • Consultation meetings, minutes and responses to representations
  • Fair and objective selection criteria
  • Severance calculations and outcome letters
  • Facilitation for large-scale s189A processes
  • Union recognition and organisational rights
  • Wage negotiations and collective agreements
  • Strike and lockout planning, picketing rules and shop steward relations
  • Mutual separation and settlement agreements
  • Workplace forums

On the People Dashboard

Lifecycle rail (Change and Offboarding); e-sign outbox; union details on the employee record.

How the People Dashboard works

How it runs

  1. Test the rationale

    We check that the operational reason is genuine and written down.

  2. Notify and disclose

    The s189(3) notice goes out with the information the law requires.

  3. Consult

    Meetings are minuted and every proposal from the other side gets a written answer.

  4. Conclude

    Selection, notice, severance and certificates of service, in that order.

Common questions

General information on South African labour law, not legal advice on your facts.

Other practices

What does a fair retrenchment under section 189 require?

A genuine operational reason, written notice inviting consultation with the information listed in section 189(3), a meaningful joint consensus-seeking process on avoiding and minimising dismissals, fair and objective selection criteria, and severance pay.

Legal basis
  • Labour Relations Act 66 of 1995, s189 IN FORCE
  • Basic Conditions of Employment Act 75 of 1997, s41 IN FORCE
What to do
Start consulting when retrenchment is contemplated, not after it is decided. Minute every meeting and answer every written representation.
When to escalate
Large-scale processes under s189A have their own thresholds, facilitation rules and timetable. Plan for them from the first notice.
Sources
  1. Labour Relations Act 66 of 1995, consolidated text (South African Government, gov.za), s189
  2. Code of Good Practice: Dismissal, General Notice 3470 of 2025, Government Gazette 53294 (gov.za), items 22 to 24
  3. Basic Conditions of Employment Act 75 of 1997 (gov.za), s41

By the LabourLink editorial team. Last reviewed 17 October 2026. General information, not legal advice.

When does section 189A apply to a retrenchment?

When an employer with more than 50 employees contemplates dismissing at least 10 employees (if it employs up to 200), 20 (201 to 300), 30 (301 to 400), 40 (401 to 500) or 50 (more than 500). Dismissals in the previous 12 months on operational grounds count towards the threshold.

Legal basis
  • Labour Relations Act 66 of 1995, s189A(1) IN FORCE
What to do
A CCMA facilitator is appointed if the employer asks for one in its notice, or if parties representing the majority of the employees consulted ask within 15 days. Where a facilitator is appointed, notice of termination may not be given until 60 days after the s189(3) notice.
When to escalate
Plan for strike or urgent application risk from the first notice.
Sources
  1. Labour Relations Act 66 of 1995, consolidated text (South African Government, gov.za), s189A(1), (3) and (7)

By the LabourLink editorial team. Last reviewed 17 October 2026. General information, not legal advice.

What is the minimum severance pay in South Africa?

At least one week's remuneration for each completed year of continuous service, payable to an employee dismissed for operational requirements.

Legal basis
  • Basic Conditions of Employment Act 75 of 1997, s41 IN FORCE
What to do
An employee who unreasonably refuses alternative employment with you or another employer may lose the entitlement. Record the offer and the reasons for refusal.
When to escalate
The Act sets a minimum. A collective agreement, bargaining council agreement or policy may provide for more, so check what applies to you.
Sources
  1. Basic Conditions of Employment Act 75 of 1997 (gov.za), s41(2) and (4)

By the LabourLink editorial team. Last reviewed 17 October 2026. General information, not legal advice.

What is an automatically unfair dismissal?

A dismissal for a reason listed in section 187 of the Labour Relations Act, such as participation in a protected strike, pregnancy, unfair discrimination, exercising rights under the Act, a section 197 transfer or making a protected disclosure. Compensation can reach 24 months' remuneration, against 12 months for other unfair dismissals.

Legal basis
  • Labour Relations Act 66 of 1995, ss187 and 194 IN FORCE
What to do
If any of these reasons is close to the facts, stop and take advice before acting.
When to escalate
Always escalate. These matters are not for automated HR workflows.
Sources
  1. Labour Relations Act 66 of 1995, consolidated text (South African Government, gov.za), ss187 and 194

By the LabourLink editorial team. Last reviewed 17 October 2026. General information, not legal advice.

A CCMA date in the diary?Send us the referral today. We assess every matter within 48 hours and tell you plainly where you stand.

Urgent CCMA helpCall +27 82 628 7755