25 Mar 2024

The Central Bank advices banks that intend to retrench staff to adhere to the relevant laws to consult unions for affected unionised staff members, says Minister of Finance, Ms Peggy Serame

Ms Serame, who was answering a question in Parliament, said like any other institutions in Botswana, banks undertook or followed the process to retrench as per section 25 (1) of the Employment Act.

“This section provides that where an employer terminates contracts of employment for the purpose of reducing the size of the work force, he or she shall do so in respect of each category of employees, wherever reasonably practical,” she said.

Ms Serame said this was done in accordance with the principle of first-in-last-out, provided that in doing so, the employer shall take into account the need for efficient operation of the undertaking in question and the ability, experience, skill and occupational qualifications of each employee concerned.

She said the same section also required an employer who intended to terminate contracts for the purpose of reducing the size of his or her workplace to forthwith give a written notice to the Commissioner of Labour, adding that in this case, every employee was likely to be directly affected by the reduction.

“Bank of Botswana is notified and engaged by any bank intending to retrench, as a matter of good banking practice, and the Central Bank seeks to understand the rationale for the retrenchment or redundancy,” she said.

MP for Maun East, Mr Goretetse Kekgonegile had asked the minister to elaborate the process banks undertook before being given approval to retrench and the role of Bank Botswana in the process. Ends