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One of the issues an employer is obliged to consult on during a potential retrenchment process is the selection criteria to be applied when determining which employees will be dismissed and which will be retained. In doing so, the employer should aim to reach agreement with the other consulting party/parties on what the selection criteria should be. But what happens if an employer reaches agreement with one or some of the consulting parties, but fails to reach agreement with all of them? Furthermore, to the extent trade unions typically tend to rely on the “last in, first out” (“LIFO”) principle during consultation, can an employer deviate from LIFO in instances where relying on it may jeopardise the company’s ability to remain competitive? If this is the case, may an employer instead use selection criteria that contain an element of potential subjectivity?

Read more: https://www.golegal.co.za/selection-criteria-retrenchment-fair-objective-requirement/

Date assessed: 20 February 2019

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