23 February 2026
Article
Global restructuring is subject to local operational requirements: CCMA confirms that the tail does not wag the dog
Can a South African subsidiary fairly retrench employees simply because a foreign parent company has
decided to reduce global headcount due to global constraints, not local operational needs?
A recent Commission for Conciliation, Mediation and Arbitration (CCMA) arbitration award provides a
clear answer, namely: The decision of a foreign holding company to reduce its global headcount does
not, without more, qualify as operational requirements of the South African subsidiary’s
(employer’s) business.
Employment
Law4 min read
