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

Notices

Bargaining Council for the Fishing Industry

Extension to Non-parties of the Main Collective Agreement

Section ll : Core Rights

Part I: Termination of Contract of Employment

32. Severance Pay
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32.1.On termination of employment for reasons based on the employer's operational requirements, as contemplated in section 189 and 189A of the Labour Relations Act the employer must pay an employee severance pay equal to at least seven (7) days remuneration for each completed year of continuous service with the employer, calculated in accordance with subclause 31.2 above.

 

32.2.An employee who unreasonably refuses to accept the employer's offer of alternative employment with the employer or any other employment, is not entitled to severance pay in terms of subclause 32.1 above.

 

32.3. The payment of severance pay in accordance with this section does not affect an employee's right to any other amount payable according to sub-clause 31.1 above or any other law.

 

32.4. Any dispute regarding the entitlement to severance pay only in terms of subclauses 32.1 and 32.2 above, the employee may refer the dispute in the prescribed written format to the Council for conciliation and if the dispute remains unresolved, the employee may refer it to arbitration.

 

32.5. The employee who refers the dispute to the Council in terms of subclause 32.4 above, must satisfy it that a copy of the referral(s) has been served on all the other parties to the dispute.

 

32.6. Where the Labour Court adjudicates a dispute about a dismissal based on the employer's operational requirements, then the Labour Court may inquire into and determine the amount of any severance pay to which the dismissed employee may be entitled, and the Labour Court may make an order directing the employer to pay such amount.