NAVIGATING TEMPORARY LAYOFFS DURING RENOVATIONS

Mall renovations across South Africa have disrupted trading for many salons, spas, and beauty establishments operating in shopping centres. With limited access to premises and temporary closures by landlords, temporary lay-offs may become a necessary operational response. This article serves as a guide for business owners in the sector, unpacking the legal framework, practical steps, and employee-relations best practices to implement temporary lay-offs lawfully and ethically.

Why Temporary Lay-Offs Matter in Our Sector

The hair, beauty, and cosmetology industry is uniquely impacted by external disruptions such as mall renovations because:

• It relies heavily on walk-in foot traffic and visibility.

• Equipment, stock, and salon fittings are often difficult or impossible to relocate.

• Client retention depends on consistent availability and continuity of service.

• Temporary lay-offs offer a way to pause operations without terminating staff, preserving employment relationships while protecting business sustainability.

Legal Framework: Know Your Obligations

1. Labour Relations Act (LRA), 1995

Sections 189 and 189A outline procedures for retrenchments and alternatives—such as lay-offs—based on operational requirements. Employers must consult employees before making such changes.

2. Basic Conditions of Employment Act (BCEA), 1997

Lay-offs are only lawful when provided for in the employment contract or when mutually agreed in writing by both parties.

3. Common Law

Without a contract clause, temporary lay-offs require employee consent. Unilaterally placing staff on unpaid leave may constitute a breach of contract or unfair labour practice.

Tip: Include a lay-off clause in all future employment contracts to streamline this process and reduce legal risk.

When Are Temporary Lay-Offs Justified?

Lay-offs may be appropriate when:

• Renovations render the salon premises unusable, unsafe, or inaccessible.

• The business suffers a documented loss of income or inability to operate.

• Reasonable alternatives such as reduced hours, temporary relocation, or shift rotations have been considered but are unworkable.

How to Implement Lay-Offs: A Step-by-Step Guide

1. Early Consultation

Engage employees as soon as renovation plans are confirmed. Explain the business challenges, lay-off rationale, and any proposed alternatives. Document all consultations.

2. Written Agreement

If contracts don’t already include a lay-off clause, obtain a signed mutual agreement outlining:

• Start and anticipated end date

• Confirmation that employment is not terminated

• UIF application support

• Retention of leave and benefits

• Conditions for return to work

EOHCB provides legally compliant templates tailored for member businesses.

3. UIF and Relief Support

Assist affected employees in applying for UIF benefits. Provide letters confirming the lay-off and reasons for operational downtime. If available, access any TERS or sector-specific relief programmes.

4. Maintain Communication

Stay in touch throughout the lay-off. Share renovation updates and give at least 5 days’ notice before return to work. This maintains trust and ensures readiness.

Risks of Non-Compliance

Improperly managed lay-offs can result in:

1. CCMA disputes for unfair labour practices

2. Constructive dismissal claims if employees feel forced or misled

3. Reputational damage, especially in a client-driven, relationship-based industry

Always document decisions, secure agreements, and communicate clearly.

Looking Ahead: Protecting Your Business Long-Term, Salon and Spa owners are encouraged to: Include lay-off clauses in new employment contracts, explore short-time work as an alternative (e.g., reduced hours or shifts) and seek support from EOHCB or a labour consultant for implementation.