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Employment: c " contract " termination " replacement of existing contracts with contracts on different terms " such amounting to retrenchment without following retrenchment procedures
The applicants sought a declaratory order that the termination of their contracts of employment by the respondent was unlawful. The applicants had been employed on contracts without limits of time. The respondent, because of adverse economic conditions, wanted to terminate the applicants' contracts and replace them with new contracts based on productivity. The applicants did not accept the offer of the new contracts, claiming that they amounted to retrenchment, without following the rules and regulations on retrenchment.
Held, that the respondent's wholesale termination of the applicants' contracts constituted an unlawful retrenchment exercise and an unlawful termination of the applicants' contracts of employment. It could not be stated on the facts that the applicants had repudiated their contracts. The grant of the declaratory order was therefore appropriate.
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