AI and Retrenchment

In South Africa, workers can be retrenched if their job is replaced by AI, but there are specific rights and procedures that must be followed to ensure fairness and compliance with the law.  This would be considered a retrenchment because of operational requirements.

1. Consultation Process: Employers must engage in a meaningful joint consensus-seeking process with the affected employees. This involves discussing the reasons for retrenchment, exploring alternatives, and attempting to reach an agreement on the method for selecting which employees to dismiss.
2. Selection Criteria: The selection criteria for retrenchment must be fair and objective. If no criteria are agreed upon, the employer must use criteria that are fair and objective.
3. Notice and Severance Pay: Employees are entitled to receive notice of retrenchment and severance pay. The amount of severance pay is typically one week’s remuneration for each completed year of continuous service with the employer.
4. Unfair Dismissal: If an employee believes that the retrenchment was unfair, they can refer the matter to the Commission for Conciliation, Mediation, and Arbitration (CCMA) or the Labour Court.
5. Bias and Discrimination: Employers must ensure that the use of AI in the retrenchment process does not result in discrimination because it is directed at a specific group of people. Also the AI systems, so far are as they are used in South African organisations, must be free from bias and comply with local labour laws.

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Regards

LP