Retrenchments, redundancies and changes to terms and conditions of employment remain some of the most sensitive decisions an employer can make. In difficult economic periods, organisations often move quickly to preserve operations, reduce costs, and restructure business functions. However, one of the common mistakes that arises during these processes is treating an announcement as though it were a consultation. While both involve communication, the new Employment and Labour Relations Act appears to make a deliberate distinction between the two. This article aims to unpack that difference and why it matters in decision-making processes.
Definitions
Section 2 of the Employment and Labour Relations Act defines consultation as “a process of informed dialogue between parties on matters of mutual concern, not within the scope of collective bargaining, before a decision is taken.” The wording of this definition is important because it introduces three important elements: informed discussion, participation by both parties, and timing before a decision is finalised.
According to the Cambridge Dictionary, an announcement is generally defined as a formal public or official statement that gives information about something that has happened or will happen. An announcement communicates an outcome.
The law
This distinction is reflected in provisions such as Section 165(1)(c) of the Employment and Labour Relations Act, which requires employers to consult workers before a contemplated retrenchment or redundancy. The importance of this provision is not limited to retrenchments alone; it demonstrates a broader principle of procedural fairness in the workplace. Consultation serves the purpose of creating dialogue, allowing workers to ask questions, raise concerns, propose alternatives, and understand the reasoning behind a contemplated action before implementation. It moves the process from being a one-sided communication exercise to one that recognises workers as stakeholders in workplace decisions. In practice, many employers mistakenly believe that informing workers of a decision amounts to consultation, when in reality, true consultation requires engagement before conclusions are finalised. One can say that when it comes to matters involving the employer and workers’ relationship, before the employer can take any unilateral change to the terms and conditions of employment, there should be those consultative meetings. This is not where the employer makes announcements or informs the workers of the decision that has been taken by the company pertaining to their employment.
The implication
For employers, there are significant implications because failure to properly consult workers can render an otherwise legitimate decision or practice procedurally unfair. Where employers merely announce decisions instead of engaging in genuine consultation, workers may perceive the process as predetermined and lacking transparency, which can damage trust, morale, and workplace relations. From a legal perspective, employers expose themselves to disputes, grievances, and potential litigation, as courts and labour often assess not only the reason for a decision, but also whether workers were meaningfully consulted beforehand or the procedure itself. Proper consultation also protects employers by demonstrating good faith, procedural fairness, and respect for worker participation in workplace matters. Ultimately, employers who understand the distinction between consultation and announcement are more likely to maintain credibility, reduce resistance to change, and ensure compliance with labour law principles.
For workers, consultation should also be approached constructively. Consultation does not mean workers decide whether retrenchment or other decisions happen; rather, it provides an opportunity to participate meaningfully before decisions affecting employment are implemented.
Conclusion
In conclusion, the distinction between an announcement and a consultation is not merely semantic; it goes to the heart of procedural fairness in the workplace. Consultation requires employers to engage workers before decisions are finalised, creating an opportunity for dialogue, participation, and consideration of alternatives, while an announcement simply communicates a decision that has already been made.
Contacts
If you want to join our free HR WhatsApp group or to consult, contact us on:
Gaborone: +267 75 546 784, +267 393 9435 or info@aupracontax.co.bw
Maun: +267 74 037 833, +267 686 0117 or tax5@aupracontax.co.bw
