Labour Relations Act, 1995 (Act No. 66 of 1995)NoticesNational Textile Bargaining CouncilCollective AgreementPart 1F: Termination of Contract of Employment34. Severance Pay |
| 34.1 | The provisions of this clause are as per the provisions of Clause 41 of the Basic Conditions of Employment Act 75 of 1997 [as amended]. |
| 34.2 | For the purposes of this section, "operational requirements" means requirements based on the economic, technological, structural or similar needs of an employer. |
| 34.3 | 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 of the Basic Conditions of Employment Act. 75 of 1997 [as amended]. |
| 34.4 | The Minister may vary the amount of severance pay in terms of subsection 31.2 above, by notice in the Gazette. This variation may only be done after consulting NEDLAC and the Public Service Co-ordinating Bargaining Council established under Schedule 1 of the Labour Relations Act, 1995 [as amended]. |
| 34.5 | An employee who unreasonably refuses to accept the employer's offer of alternative employment with that employer or any other employer, is not entitled to severance pay in terms of subsection 34.2. |
| 34.6 | The payment of severance pay in compliance with this section does not affect an employee's right to any other amount payable according to law. |