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Thread: Retrenchment question

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    Email problem KimH's Avatar
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    Retrenchment question

    A quick question for our labour law fundi's on the forum - if a retail company has only one IT person in the business (carries out the full IT function and support for head office and all retail outlets) and then retrenches this employee for 'operational requirements' - can they then outsource the IT function to an external company immediately thereafter?

    Thanks.
    "If at first you don't succeed, do it like your mother told you."

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    Diamond Member Justloadit's Avatar
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    I am not sure, but I can tell you, they will be calling that person soon. An outsourced IT company is not going to have the intricate knowledge of the system in question. Just make sure that they do not give help over the phone, rather say that they will consult on an hourly basis to clear the problem, then charge them an arm and a leg. Make sure that they get paid, before leaving the premises.
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    KimH (19-Mar-12)

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    Platinum Member sterne.law@gmail.com's Avatar
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    Outsourcing, even if "second generation" causes quite a few questions.

    the most important aspect is if the outsourcing achieves the objectives of teh retrenchment. In other words if you said for financial reasons and the outsourcing is not a substantial saving, there is a problem. However lets say you needed 24 hr serive or access to extra skills and this owuld have required an extra salary or salaries but outsourcing will achieve the 24 hrs and extar skill sets at a saving, then although the "wage bill" has increased, the retrenchment objective is achieved.
    Anthony Sterne

    www.acumenholdings.co.za
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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    KimH (19-Mar-12)

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    Email problem KimH's Avatar
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    That's exactly it Justloadit - this IT person set up the entire infrastructure by himself. I have also advised that he should the handover period extend past the time for the company to finalise the retrenchment process that he should bill out per hour - preferably getting the deposit done prior to providing the assistance though

    Anthony, they have stated operational requirements and have not mentioned savings or additional skill sets required - which I imagine they would have had to include in his retrenchment letter if it had bearing on retrenching the only IT post in a company of 100+ employees?
    "If at first you don't succeed, do it like your mother told you."

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