Free Tool · LRA Section 189 / 189A

Retrenchment Process Checklist

Step-by-step compliance guide for South African employers. Covers both Section 189 and 189A of the LRA — with an integrated severance pay calculator.

LRA s.189 / 189A BCEA s.41 Severance ⚠ Seek legal advice for complex cases

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Retrenchment is high-risk. Get it right.

A procedurally unfair retrenchment can result in 12 months' compensation at the CCMA or Labour Court — plus legal costs. AutoComply can connect you with a qualified labour law practitioner before you start.

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This checklist is based on the Labour Relations Act 66 of 1995 (sections 189 and 189A), the Basic Conditions of Employment Act 75 of 1997 (section 41), and the Code of Good Practice: Dismissal (September 2025). It is a guidance tool only and does not constitute legal advice. Retrenchment processes are complex — always consult a qualified labour law practitioner for your specific situation.