Ina Opperman

By Ina Opperman

Business Journalist


Were you retrenched? How to manage and move on

Retrenchment has become more common in South Africa for the past three years and it can have devastating effects on your life and finances.


In the shadow of an unsteady economy, retrenchments and layoffs have sadly become an increasingly regular occurrence for South African workers.

With thousands having to contend with these unexpected changes, there is a dire need for guidance, not only for advice on how you can put your life together again and manage with limited financial resources but also on how to deal with the emotional impact of this event, Dr Linda Meyer, MD of The Independent Institute of Education’s Rosebank College says.

“The sudden loss of a job is more than just an economic hardship. A drastic life change often ushers in intense emotional responses, such as stress, anxiety, depression and a blow to your self-esteem. In these trying times, understanding the psychological impact of unemployment and knowing where to seek help is important in addition to understanding the logistics of how to proceed.”

ALSO READ: Retrenchment cover is more important now than ever before

Meyer, a former Commission for Conciliation, Mediation and Arbitration (CCMA) Commissioner, says it is essential that people facing retrenchment understand their legal rights as a first point of departure.

“In the face of retrenchment, knowing your legal rights as an employee is critical. Understanding these rights can help protect you against unlawful dismissal and ensure that you receive the full benefits and compensation which you are entitled to under the Labour Relations Act.”

Your right to fair procedure

Before you can be retrenched, your employer is legally obligated to engage in a consultation process and discuss the reasons for the proposed retrenchments, possible alternatives to retrenchment, the number of employees likely to be affected and the proposed method for selecting which employees to retrench.

Your employer must allow you to voice your opinions, suggest alternatives and challenge the proposed retrenchment process.

Your right to severance pay

If you are retrenched, you are entitled to at least one week’s wages for each completed year of continuous service as severance pay in addition to your normal salary and benefits. These benefits are stated in the Basic Conditions of Employment Act.

Your right to notice or payment in lieu

According to the Basic Conditions of Employment Act, your employer should give you written notice of termination or retrenchment. The notice period varies depending on your length of service. The notice period is four weeks if you worked at the company for longer than a year.

If the employer chooses not to give notice, he must pay you in lieu – referred to as ‘pay instead of notice’. This means you will be compensated for the notice period, whether you worked during it or not.

ALSO READ: Have you lost your job? You could be entitled to severance pay

Your right to a certificate of service

Upon retrenchment, you will receive a Certificate of Service from your employer. This certificate should indicate the duration of your employment, your positions and your remuneration at the time of departure.

Your right to unfair dismissal protection

If you believe your retrenchment was unfair, you have the right to challenge it. Unfair retrenchment could be due to the employer failing to follow correct procedures or discriminating in choosing who to retrench. The CCMA provides a platform to hear and address such grievances.

Your right to assistance

You also have the right to ask for assistance from a trade union representative or a fellow employee during the consultation process.

Meyer says understanding these rights is the first step in safeguarding your interests during retrenchment. If you are uncertain about any aspect of the process, talk to a lawyer, consult your trade union or seek advice from the CCMA call centre at 011-220-5080. “Remember, you do not have to navigate these challenging times alone.”

Moving on

Retrenchment can trigger a tumultuous wave of emotions, Meyer says. “As you grapple with the shock of sudden job loss, you might experience feelings of anger, fear, anxiety, sadness and possibly relief. These reactions are entirely normal and managing these emotions healthily is essential to navigating this challenging time.”

ALSO READ: Don’t cash in your pension funds when you resign

Acceptance and acknowledgement

The first step is to allow yourself to feel these emotions without judgement, Meyer says. You suffered a significant loss and it is normal to grieve. By acknowledging your feelings, you permit yourself to begin healing.

Talk about your feelings

Keeping your emotions bottled up can increase stress and lead to feelings of isolation. Meyer says you can reach out to trusted family members, friends, or mental health professionals. Speaking about your feelings can help you gain perspective, reassurance and even practical advice.

Stay active and healthy

Regular physical activity releases endorphins, the body’s natural mood lifters and can help you maintain a positive mindset. Find an exercise you enjoy – such as walking, jogging, yoga, or cycling – and incorporate it into your daily routine. When dealing with emotional distress, it is easy to neglect essential self-care. However, maintaining a balanced diet, ensuring sufficient sleep and avoiding excessive alcohol and caffeine can significantly impact your emotional well-being.

Set realistic goals for the future

Setting achievable goals, whether related to job-hunting, learning a new skill, or even daily self-care tasks, can give you a sense of purpose and control. Remember to be gentle with yourself and celebrate small victories along the way, Meyer says.

Seek professional help

If feelings of anxiety, depression, or hopelessness persist, it might be beneficial to seek professional help. Meyer says mental health professionals can provide the necessary support and tools to help you navigate this difficult time. “Remember, it is okay not to be okay. Dealing with retrenchment is challenging, but with patience, resilience and proper support, you can weather this storm and come out stronger on the other side.

“Navigating the stormy waters of economic distress can be challenging, but with the proper psychological support and a compassionate community, it’s a battle that can be fought and won.”

Where to find help

Several South African institutions offer psychological support services for people struggling with unemployment and its impact:

  • The South African Depression and Anxiety Group (SADAG): SADAG offers various support services, including counselling, treatment referrals and support groups. Their 24-hour helpline, 0800 12 13 14, provides immediate, confidential assistance to anyone in distress.
  • LifeLine Southern Africa: This non-profit organisation provides free, confidential 24-hour telephonic counselling and crisis intervention at 0861 322 322. They also offer face-to-face counselling at various centres across the country.

Read more on these topics

jobs retrenchment retrenchments

Access premium news and stories

Access to the top content, vouchers and other member only benefits