How to Downsize While Prioritising Employee Well-being in Africa
- Last updated: March 14, 2025
“Which aspect of business management is the least pleasant for all involved?” may just turn up the answer “downsizing”.
While reducing staff numbers can be a necessary step for your company’s sustainability and growth, the process nonetheless remains extremely sensitive, and should be handled with great care, sensitivity, and a focus on employee well-being. Across Africa, from Rwanda to Morocco, South Africa to Malawi, the approach to downsizing demands not only compliance with local labour laws…but it also necessitates copious reserves of cultural sensitivity, as well as a commitment to supporting affected employees during and after the process.
Failure to adopt a compassionate, legally compliant and ethically responsible approach to downsizing can wreak havoc on your remaining workforce, creating a climate of fear for job security, as well as resentment.
In this article, we detail some tried and true strategies to adopt when downsizing to prioritise employee well-being.
1. Compliance with African Labour Laws on Notice Periods & Severance Pay
Every country in Africa has its own set of labour laws – which include strict regulations regarding notice periods and severance pay – which employers must comply with. Before initiating any downsizing processes, you must understand and adhere to the specific African country’s labour law requirements.
Notice Periods
Across Africa, and depending on the type of employment, most employees are entitled to notice before their termination. Make sure to give employees the appropriate notice period, as failing to do so may result in legal repercussions.
In South Africa for instance, the notice period depends on the duration of employment. From 0 to 6 months, employees must be given a week’s notice. From 6 to 12 months, it is 2 weeks’ notice, and for more than 12 months, it is 4 weeks’ notice. On the other hand, in countries like Cameroon, there are no notice periods. Both parties may terminate at will.
Severance Pay
Employees who are terminated are often entitled to severance pay, especially if the termination is due to restructuring or downsizing. Labour laws across Africa ensure that terminated employees are compensated fairly for their years of service. As such, it’s essential to calculate severance pay accurately and ensure timely payment.
Complying with these legal requirements not only ensures that your company avoids legal trouble, but it also demonstrates that you value the contributions of your employees and are committed to fair treatment, especially during difficult times. This sends a strong message to your remaining employees, who feel more secure in seeing that their colleagues are being treated well in such a difficult situation.
But labour laws across Africa often periodically undergo changes, making it difficult to be up to date – and as such, up to code – with the latest version of the law. Beyond that, there is the matter of the interpretation of the law, which further complicates the situation. Having an experienced EOR or payroll partner by your side during these moments can make all the difference. With over 15 years’ of experience in Africa, Africa HR Solutions will help you stay compliant across 46+ African countries.
2. Be Culturally Sensitive When Handling Terminations
Cultural nuances are incredibly important in African workplaces. Many companies that expand to Africa make the grave mistake of adopting a Western approach to communication while in Africa. In many African cultures, respect for elders, family, and community, and the human being as a whole is central to daily life, so terminations should be handled with dignity, care, and respect for the local culture.
When planning a downsizing strategy in an African country, consider the following:
Personalised Communication
Instead of a generic or impersonal approach, ensure that terminations are handled in a private, face-to-face meeting. Acknowledge the employee’s value and contributions to the company and explain the situation with empathy and transparency.
Language and Tone
Use respectful language and an appropriate tone during the conversation. Avoid anything that could come across as harsh or insensitive.
Taking the time to approach each termination with cultural understanding can help maintain positive relationships with former employees, protect your brand’s reputation, and demonstrate your commitment to employee well-being.
3. Go Above Strict Compliance When Possible
While it’s important to meet the legal minimums when downsizing, companies should strive to go above and beyond to support their employees, and as a show of goodwill. Going beyond strict compliance can improve employee morale, protect your company’s reputation, and foster loyalty even among those who are being let go.
One way to do this is:
Offering Extended Severance Packages in Africa
Beyond strict legal requirements, consider offering enhanced severance packages that reflect the employee’s years of service or the hardship of losing their job. This is especially impactful in regions where unemployment rates may be higher.
4. Ensure Clear Communication to Prevent Misunderstandings
Clear communication is paramount throughout the downsizing process. Misunderstandings can easily arise when employees are uncertain about the reasons for their termination, the terms of their severance, or what will happen after they leave the company.
Here are a few best practices for communication during downsizing:
Transparent Messaging
Ensure that the reasons for downsizing is communicated clearly and honestly to all affected employees. This prevents rumours and confusion from circulating within the organisation.
Written Documentation
Provide employees with written documentation outlining the terms of their termination, including their notice period, severance pay, and any support you’re offering. This will help reduce the chances of misunderstandings and legal challenges.
Availability for Questions
Have an open-door policy when it comes to downsizing and terminations. Allow employees to ask questions and seek clarification on any aspect of the downsizing process. This shows that you’re not just following procedures but are genuinely concerned about employees’ well-being.
5. Use an Offboarding Checklist to Ensure Proper Documentation
Proper documentation is essential during the downsizing process to ensure that all legal requirements are met and that nothing is overlooked. A comprehensive offboarding checklist can guide the process to ensure that each employee’s departure is handled efficiently and in accordance with the law.
Key elements to include in your offboarding checklist include:
Return of Company Property
Make sure all company equipment, keys, or documents are returned before an employee’s last day.
Exit Interview
Conduct an exit interview to understand the employee’s perspective on the company and provide them with an opportunity to voice any concerns.
Final Payroll Run & Benefits
Ensure that all outstanding pay, including severance, and benefits (such as unused leave) are processed before the employee’s final day. An African payroll partner like Africa HR Solutions can help support this function. Find out how our teams can help you with your payroll needs across Africa.
Certificate of Employment
Provide a certificate of employment to the terminated employee, as this can be helpful for future job applications.
By adhering to a thorough offboarding checklist, you can ensure that every step is completed correctly, leaving both the company and the employee in a good position as they part ways.
Downsizing is never easy, but when done with empathy, respect, and a focus on employee well-being, it can be a smoother and more positive experience for everyone involved.