With the National Lockdown in full force, owners of small, medium and micro enterprises are finding themselves in unanticipated and potentially dire circumstances where they are forced to consider the financial consequences their businesses are experiencing as a result of the lockdown; and the effect that this may have on their workforce.

It is of paramount importance that employers engage with their employees and advise them of the course(s) of action the company may be forced to take. This may include:-
1. preparing a letter communicating to their employees the company’s position regarding the taking of annual / unpaid leave.
2. contemplating starting a process of retrenchment, which does not necessarily entail terminating employment.
3. not paying employees and needing to apply for TERS funding at the Department of UIF. (TERS = Temporary Employer/Employee Relief Scheme)
4. attending to labour matters which need to be addressed and which cannot wait for the lockdown to be over.

Similarly, employees may find themselves in a situation where they fall foul of an employer who is using the national lockdown as an excuse to justify the unlawful dismissal of an employee; and the employee is consequently in need of the qualified assistance of a Labour and Employment Lawyer without it breaking the bank.

The Labour and Employment Law Department at Stegmanns Incorporated is available on e-mail and Zoom to assist both employers and employees alike in navigating these unprecedented times.

National Lockdown – Effects on both Employers and Employees in Small, Micro and Medium Enterprises