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 Collective Agreement in terms of Sec 32(2) of the LRA

Areas

Area B

37. Severance or Retrenchment Pay
Purchase cart Previous page Return to chapter overview Next page

 

37.1 If the Employee's services are terminated on reasons based on operational requirements an Employer shall pay severance pay as follows:
37.1.1 employees who have worked for 1 (one) Employer or one Establishment for a period of up to 5 (five) years continuous service shall be entitled to 1 (one) week's severance pay for each and every completed year of service;
37.1.2 employees who have worked for 1 (one) Employer or 1 (one) Establishment for a period of more than 5 (five) years but less than 10 (ten) years continuous service shall be entitled to 1.5 (one point five) weeks' severance pay for each and every completed year of service;
37.1.3 employees who have worked for 1 (one) Employer or 1 (one) Establishment for a period of 10 (ten) years and more continuous service shall be entitled to 2 (two) weeks' severance pay for each and every completed year of service.