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Post Info TOPIC: non payment of salary/not following retrenchment process

non payment of salary/not following retrenchment process

Morning I am working in retail at a shop since oct 2014.

I have a permanent contract.

The owner has a view shops. 

They also have other businesses thats generating huge profit and income.

They seemed to lost interest in the  retail shops i am working in.

They claiming they cant follow retrenchment procedure and pay out packages they also claiming they havent paid other staff in other shops because they havent got enough money in the bank which i think is untrue.

The above information I got from the person that i report to she reports directly to the owner.

Can they refuse to pay salaries? 

Can they ask you to leave without following the retrenchment process?

What is my rights when it comes to this?

Keeping in mind there are still other shops trading and the owner has other businesses and is traveling overseas currently.


I do have a policy with Labour protect.




Labour Protect


Good day, 

1. They cannot refuse to pay salaries the CCMA has been mandated to hear matter of monies owed to employees by the employer. You can refer this matter to the CCMA under section 73 A of the Labour Relations Act. 

2. The cannot ask you to leave without paying you your severance package or for not following the section 189 Retrenchment process, this will be a breach of the Labour Relations Act. Unfortunately if you  feel that your rights were infringed then you have to lodge this dispute with the nearest Labour Court, the CCMA will refer this type of matter to the Labour Court. 

3. Remember that if the shop is a (Pty) Ltd or CC or company with limited liability, then if the company has no money then it can liquidate. If it begins the liquidation process then its employees become priority creditors. What ever the amount is retrieved from the winding up of the company must be paid out to the creditors even if it is a few cents to the rand. Even though the owners might have money if the company is bankrupt then legally the only option available is to proceed with liquidation.  

Please contact labour protect to find out about your membership. 

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