Mutual separation vs retrenchment: LAC ruling provides clarity
bizcommunity | 18.03.2026 21:11
Following the Labour Court’s decision in 2024 in the case of WBHO Construction (Pty) Ltd v Masenye N.O. and Others, which raised some concerns about the treatment of mutually agreed terminations in the context of retrenchment proceedings, the Labour Appeal Court (LAC) has confirmed that nothing prevents parties from entering into a mutual separation agreement at any time when operational requirements are discussed.