Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Metal and Engineering Industries

Main Collective Agreement

Part 2

5. Annexure A

Security of Employment and Severance Pay

2. Lay-offs

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For the purpose of this clause, “lay-off” means the temporary suspension, without pay, of employment for a minimum of five full consecutive shifts owing to a reduction in the volume of work in an establishment or section of an establishment or owing to any other economic reason or any other contingency or circumstance beyond the control of the employer.

 

The following procedures and conditions shall apply in respect of lay-off provisions:-

 

(a)An employer shall give the Regional Office, affected employees and affected party trade unions fourteen clear working days’ notice of the intention to lay-off employees.
(b)The notification of lay-off shall provide the names of the affected employees, the reasons for the lay-off and the estimated duration of the lay-off.
(c)The employer shall, during the fourteen-day notification period, consult with the representatives of the trade unions and/or elected shop stewards on the reasons for the lay-off and the manner in which it will operate.
(d)The employer shall give the affected employees a minimum of five shifts notice of the intention to lay-off.  This notice shall include the specific date on which the employees are to resume work.
(e)The employer shall not be required to pay wages to the employees on lay-off, provided that where the employer believes resumption of work can be affected and expressly instructs the employees to present themselves for employment on a particular day, they shall receive not less than four hours’ work or pay in lieu thereof, in respect of such day.
(f)Lay-off may not continue beyond a period of eight weeks unless otherwise agreed between the employer and representatives of the party trade unions representing the affected employees or such other representatives of the affected employees.
(g)Periods not worked by an employee whilst on lay-off shall count as shifts actually worked and these employees shall be credited with the full shifts for an ordinary week, whilst on the lay-off, for purposes of paid leave and leave enhancement pay up to an eight week maximum in any calendar year.
(h)Employees on lay-off may engage in any other employment for remuneration during the duration of the lay-off.
(i)Should an employee on lay-off not return to employment within three working days of the due date. The employee shall be deemed to have terminated employment with the employer, unless the absence is condoned by the employer.”
(j)The provisions of subclause (8)(i)(a) of this Agreement shall mutatis mutandis apply to the payment of earnings in respect of lay-off.”