Before examining the amount offered, establish whether the process was followed. A defective process is itself a ground.
The five questions
- Was 14 days' written notice given to the works or employment council, the Retrenchment Board and the affected employees?
- Did the notice include details of the employees and the reasons?
- Did the employer consult and negotiate a package better than the minimum, as required?
- Was the Retrenchment Board notified of the agreed package, or of payment of the minimum?
- Did the Board issue a notification certificate confirming compliance?
Each of those is an obligation on the employer under Section 12C as amended.
Then the amount
The statutory minimum is one month's salary per two years of service.
Check:
- Your start date and total years
- The salary figure used
- Whether payment in lieu of notice is included separately
- Whether accumulated leave days are included
The enhanced package
The 2023 amendment expressly contemplates an enhanced retrenchment package above the minimum, negotiated with reference to the employer's capacity to pay.
If your employer is well-resourced and offered only the minimum without negotiation, that is worth raising.
If it is not really a retrenchment
Where a termination on notice is effectively a retrenchment disguised as something else, retrenchment entitlements can apply.
Look for: your role disappearing, multiple people terminated together, or economic reasons cited while a notice route was used.
If it is really a retrenchment but treated as misconduct
The reverse also happens. Misconduct requires a strict disciplinary procedure. If none was followed, the characterisation is questionable.
Where to raise it
The works or employment council for your sector, the Retrenchment Board, and the Ministry of Public Service, Labour and Social Welfare.
Act promptly
Records are easier to assemble close to the event, and procedural questions are best raised while the process is still live.