Quickcomputerstips
The key points are: - Downsizing often leads to worse, not better, financial performance. - Downsizing damages the working environment in the firm, adversely affecting the morale and motivation of those left behind, which in turn can lead to lower productivity and creativity.
- What are the effects of retrenchment?
- What are fair reason for retrenchment?
- Is there a downside to downsizing?
- Can you refuse retrenchment?
- What is the notice period for retrenchment?
- Why is retrenchment noted as a negative career problem?
- What are the types of retrenchment?
- What is retrenchment example?
- Can you get retrenched during lockdown?
- What are the retrenchment rules?
- What are the legal requirements for retrenchment?
- At what age should seniors downsize?
- Why is it better to buy a small house?
- Does it make sense to downsize house?
What are the effects of retrenchment?
Retrenchment is never easy, both on the employer and the retrenched employee. The employer faces disputes, low morale, low productivity and even sabotage by disgruntled employees. Retrenchment may also have a devastating effect on the on the retrenched employee and his family life.
What are fair reason for retrenchment?
Typically, economic reasons given for the need for retrenchment include the ability to make money or to retain sufficient funds to continue operations. Such reasons need not be confined to the current financial situation but could include the company's projected financial circumstances.
Is there a downside to downsizing?
Disadvantage: Lack of Opportunities
Downsizing means fewer available positions within a company, and some workers will probably have to be terminated. It also means existing employees who are kept employed will have fewer opportunities to grow and rise to higher positions within the business.
Can you refuse retrenchment?
Of course, you can refuse retrenchment, which means the consultations have deadlocked. If you are the only person being retrenched, you can refer the dispute either to arbitration or to the Labour Court, irrespective of whether the retrenchment procedure complied with section 189.
What is the notice period for retrenchment?
If employed for less than six months – one week's notice; if employed for more than six months but not more than one year – two weeks' notice and if employed for more than a year – four weeks' notice. Domestic and farm workers, who have been employed for more than six months, must receive four weeks' notice.
Why is retrenchment noted as a negative career problem?
Retrenchment can have a traumatic and emotional impact on the still-employed as well as those who have been laid off. The remaining employees may feel demotivated and insecure which can result in lower productivity within the organisation - especially if the retrenchment process hasn't been handled appropriately.
What are the types of retrenchment?
The three types of retrenchment strategies are Turnaround strategy, Divestiture strategy, and liquidation strategy.
What is retrenchment example?
The process of assigning a business function or process to an external partner, often to reduce costs. Outsourcing is only retrenchment when it is done urgently. For example, an IT company that suddenly sells its data centers and outsources to the company that purchases the data centers to generate cash in a crisis.
Can you get retrenched during lockdown?
Is anyone allowed to get retrenched? Employers are not precluded from retrenching employees during the national lockdown, provided the employer has a valid operational reason to implement retrenchments and follows the procedures set out in section 189 of the LRA.
What are the retrenchment rules?
Severance pay – a retrenched employee must at least be paid 1 week's pay for each completed year of ongoing service. However, the employer must pay the retrenched employee the amount specified in any policy or his/her employment contract, if that amount is larger.
What are the legal requirements for retrenchment?
The retrenchment package
The employer is legally obligated to pay retrenched employees “severance pay”, being one week's pay for each completed year of service. This amount may be higher if the employee's contract says so, or if the industry rate is higher due to a Collective Agreement.
At what age should seniors downsize?
Home Downsizing: Intangibles
Because of that fact, don't treat this issue too lightly. You may not make new friendships in your new home as easily as you did in your old one...
Why is it better to buy a small house?
The Bottom Line on Buying Smaller
Choosing a smaller, more affordable home could help you become a homeowner sooner, and you could pay less in a down payment and other upfront costs. It's also easier on your budget once you own your home, as it can result in lower mortgage payments and utility costs.
Does it make sense to downsize house?
Done right, downsizing can still be a good idea. You might not just walk away with more money but also simplify your life and reduce your home-maintenance and utility costs for years to come. To reach that happy outcome, you need to steer around the unexpected pitfalls that make downsizing so dicey.
