Off The Desk

Short Time

We are more often than we would like to admit, confronted by our clients with the scenario where business production or sales are down and there is not enough work to keep all the employees busy the whole day or week.

The clients, not knowing what their options are, tell us that they are considering retrenchment or possibly closing shop, but are afraid of the costs, and when business picks up again in a week or even a month or so, staff need to be re-employed after already being paid severance packages. This is especially an issue now going into the festive season as several companies and industries close from 15 December 2022 but still need to pay a whole month’s salaries and sometimes even bonusses when they do not have a full month’s worth of production or sales. 

It is to be noted that Short Time is not the same as the 4 day work week that was recently discussed in the news, or even a compressed work week. The latter is different working terms, but the normal amount of working hours (usually between 40 and 45 hours per week are worked and paid, just in a different format and in a shorter time period), whereas with the former the normal number of working hours are not worked and also not paid.

There might be a simpler, more cost-effective way to handle this. If your production or sales are down only temporarily, you can, as an alternative to retrenchment, lay-offs or closing shop, consider short time, which is basically where the working hours are reduced and the employees are only remunerated for the hours they work. This is a way to save on labour – and production costs and the expenses of running a business will also be reduced as the proverbial “lights” will not be burning so much.

Short time is defined as: “a temporary reduction in the number of ordinary hours of work owing to a slackness of business in the trade, a breakdown of plant, machinery or equipment or a breakdown or threatened breakdown of buildings”

It is very important to note that this may not be implemented unilaterally, and there must always be, like anything in labour law, a procedure followed, failure of which can cause tremendous harm and possibly end up costing you more than the amount you originally saved. Should the employees refuse to accept the short time, after you consulted with them (and the union(s) – if applicable) and explained the reasons for same, the employer may embark on a possible retrenchment process and then implement short time as an alternative to retrenchment, thus no longer requiring the permission or consent of the employees, as it is seen as an alternative to dismissal.

Another thing to note is that Short Time is temporary and cannot be implemented indefinitely. As a general rule (this differs from industry to industry) it can be implemented for 6 weeks at a time and that should the 6 weeks run out and the situation not change, must the employer seek other avenues. The reason for this is to prevent dubious employers from abusing this process.

The above principle (as well as other things not to do when dealing with short time, possible retrenchment, strikes and lock-outs and unilateral change to terms and conditions) was confirmed in the judgement of Independent Commercial Hospitality and Allied Workers Union and others v Commission for Conciliation, Mediation and Arbitration and others (2015) 24 LC.

It is also very important to note that different industries like the Metal and Engineering, Retail, Private Security, Construction etc, often have different rules and time allowance with regards to Short Time, which means what is allowed in one industry is not necessarily the same in another, thus it is very important to ascertain the facts and procedures before embarking on this process, in order not to get caught on the wrong side of the law.

Short time can become very tricky very quickly if you do not know what to do and the steps to follow, and can only be used in certain instances. It is not a one-size-fits-all process. Contact SA Labour Help to assist you in this process and make sure everything is done correctly and lawfully to ensure you reach the desired outcome.

By Gerhard Kotzé

Member
SA Labour Help