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Basic Conditions of Employment Act, 1997 (Act No. 75 of 1997)

Sectoral Determinations

Sectoral Determination 14 : Hospitality Sector, South Africa

Part G : Termination of Employment

27. Severance pay


(1) For the purpose of this clause, "operational requirements" means requirements based on the economic, technological, structural or similar needs of an employer.


(2) An employer must pay an employee who is dismissed for reasons based on the employer's operational requirements, severance pay equal to at least one week's remuneration for each completed year of continuous service with that employer.


(3) An employee who unreasonably refuses to accept the employer's offer of alternative employment with that employer or any other employer is not entitled to severance pay in terms of sub-clause (2).


(4) The payment of severance pay in compliance with this clause does not affect an employee's right to any other amount payable according to law.


(5) If there is a dispute only about the entitlement to severance pay in terms of this clause, the employee may refer the dispute in writing to the CCMA.