21/08/2026
Understanding the difference between Dismissal and Retrenchment
Dear domestic workers, it is important to understand the difference between dismissal and retrenchment.
Dismissal is when an employer ends your employment because of something related to you, such as misconduct, poor performance, or incapacity. The employer must follow a fair process.
Retrenchment is different. It happens when the employer can no longer keep your position because of genuine operational or financial reasons. For example:
* The children have grown up and no longer need childcare or domestic services.
* The employer can no longer afford to pay your salary.
* The employer or family is moving into an old-age or retirement home.
* The employer is relocating to another area or country.
* The household circumstances have changed and the employer no longer needs a domestic worker.
* The employer is experiencing other genuine operational or financial difficulties.
Being retrenched does not mean that you have done something wrong. The employer must still follow a fair retrenchment process and discuss the reasons and possible alternatives with you.
If your employer tells you that you are being dismissed or retrenched, do not sign anything you do not understand. Ask questions and seek advice before signing any agreement.
Know your rights. Know the difference. Protect yourself.
Izwi Domestic Workers Alliance
