RETRENCHMENT

PAYMENT ON RETRENCHMENT

a.  Severance Pay:

On retrenchment you should be paid at least one week's remuneration for each completed and continued year of service. ("Remuneration" includes basic salary, payment in kind and discretionary payments related to working hours or performance).  Should you unreasonably refuse an offer of alternative employment you will not be entitled to a severance package.

b. Outstanding leave:

To be paid out.

c. Notice pay:

Period employed

weeks notice pay

1 - 4 weeks

4 weeks - 1 year

2

more than a year

4

Domestic and farm workers who have been employed for four weeks or more, must receive four weeks' notice. The employer may require employees to work/not to work during the notice period.

d. Other:

Depending on the employment contract, the following may be relevant: 

  • pro rata payment of bonus, 

  • pension and provident fund. 

Relevant Legislation: Labour Relations Act 1995 (section 189) and Basic Conditions of Employment Act 1997 sections 35, 37 and 41.  This document is based on literature available from the CCMA

>> Labour Law

>>  useful links

>>  advice

>>  retrenchment procedures

>>  unfair discrimination

>>  conciliation

>>  formal grievance procedure

>>  remuneration definition

>>  UIF payments

>>  UIF benefits

 

 

 

(c) Bridge Marketing 2000-2010 All right are hereby reserved.

The information provided on this site is subject to Labour Protect's standard "Terms of Use" and is to be used strictly in conjunction with the further advice of a professional labour expert or attorney.  By using this site, the user agrees that Labour Protect shall not be liable for any damages that may arise from any cause whatsoever.

Search  
www Labour Protect