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

Notices

National Bargaining Council for the Hairdressing, Cosmetology, Beauty and Skincare Industry

Extension to Non-parties of the Consolidated Main Collective Agreement

Areas

Area A

37. Severance or Retrenchment Pay
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37.1 An Employer that terminates the services of one or more Employees as a result of operational requirements shall be obliged to pay each Employee the following remuneration or Basic salary or wages in lieu of severance pay:
37.1.1 1 (one) day's remuneration or Basic salary or wages if the Employee has been employed for a period of 1 (one) month or less;
37 1.2 6 (six) days' remuneration or Basic salary or wages for each completed year of service or part thereof for an Employee who has been employed for a period less than 5( five) consecutive years;
37.1.3 7 (seven) days' remuneration or Basic salary or wages for each completed year of service or part thereof for an Employee who has been employed for more than 5 (five) but less than 10 (ten) consecutive years;
37.1.4 8 (eight) days' remuneration or Basic salary or wages for each completed year of service or part thereof for an Employee who has been employed for 10 (ten) consecutive years or more;
37.1.5 in the event of an Employee who is employed on a commission-only structure, severance or retrenchment pay, in terms of clause 22 above, shall be calculated;
37 1.5.1 in accordance with the Remuneration/Basic Salary/Wage Schedules for that Area; plus
37.1.5.2 37.1.5.2        the following percentages of their Average PSC (Personal Services Commission) earned in the past 12 months, being:
37.1.5.2.121% (twenty one percent) for the period 1 June 2023 to 31 May 2024 in respect of Parties and in respect of non-parties, on such date as determined by the Minister of Employment and Labour in terms of section 32 of the Act, until the 31st of May 2024;
37.1.5.2.222% (twenty two percent) for the period 1 June 2024 to 31 May 2025; and
37.1.5.2.323% (twenty three percent) for the period 1 June 2025 to 31 December 2025.

 

37.2 An example of the calculation envisaged in this clause 37 is reflected in annexure "E".