How long does an employer have to pay you after being retrenched in South Africa?

if the employee was employed for less than 6 months, s/he must be paid 1 weeks’ notice pay; if the employee was employed for more than 6 months but less than 1 year, s/he must be paid 2 weeks’ notice pay; if the employee was employed for more than 1 year, s/he must be paid 4 weeks’ notice pay.

What is the legal retrenchment package in South Africa?

Retrenchment packages, as per Section 41 of the Basic Conditions of Employment Act (BCEA), are one week’s remuneration for each completed year of service with that employer, said Darryn Mer, an employment law specialist at Fluxmans Attorneys.

How do I write a severance agreement?

What should be included in a severance agreement?

  1. Compensation details.
  2. Confidentiality rules following termination.
  3. Date of employee’s termination.
  4. Agreement from both parties in the form of a signature.
  5. Details about how long the employee will continue to have access to benefits.

What is a section 189 retrenchment?

THE SECTION 189 RETRENCHMENT PROCESS IN TERMS OF THE LABOUR RELATIONS ACT. Section 189 of the Labour Relations Act (“LRA”) permits employers to dismiss employees for operational requirements. These are defined as requirements based on economic, technological, structural or similar needs of the employer.

What is a section 189 letter?

What is a s189(3) notice and when must it be issued? The s189(3) notice is a written notice issued by the employer that discloses all relevant information and invites the employee representatives and/or employees to consult with the employer.

How is severance pay usually calculated?

(2) An employer must pay an employee who is dismissed for reasons based on the employer’s operational requirements severance pay equal to at least one week’s remuneration for each completed year of continuous service with that employer, calculated in accordance with section 35.

How do I write a letter requesting severance pay?

I will continue to be a professional, and I believe we can make this a smooth transition for both our parties, but there are a few basic demands that I need you to meet: 1) I need a severance package. 2) I need benefits until I have secured other employment. 3) I need all my vacation paid out.

What is the difference between Section 189 and 189A?

S. 189 deals with the situation where the employer wants to single out employees “here and there” as it were, and S. 189A deals with the situation where the employer wants to retrench at least 10 or more employees, and employs more than 200 employees.