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

Notices

Bargaining Council for the Motor Ferry Industry

Extension to non-parties of the Main Collective Agreement

23. Severance Pay
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23.1.All employees who are dismissed due to operational requirements and whom are entitled to severance pay will be paid Severance Pay of 1.5 weeks basic pay per year of continuous service, subject to permanent employees with more than 6 (six) months' continuous service whom will be paid Severance Pay of 1.4 weeks basic pay per year of continuous service with a pro-rata severance payment for any part years' service.

 

23.2. During a retrenchment process in a company a union recognised as a collective bargaining agent may enter into ad hoc negotiations with the respective employer at plant level to improve the severance payments of its members.