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

Sectoral Determinations

Sectoral Determination 6 : Private Security Sector, South Africa

24. Severance pay


(1) For the purposes 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, calculated in accordance with clause 3.


(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 section, the employee may refer the dispute in writing to—
(a) a council, if the parties to the dispute fall within the registered scope of that council; or
(b) the CCMA, if no council has jurisdiction.


(6) The employee who refers a dispute to the council or the CCMA must satisfy it that a copy of the referral has been served on all other parties to the dispute.


(7) If the dispute remains unresolved, the employee may refer it to arbitration.


(8) If the Labour Court is adjudicating a dispute about a dismissal based on the employer’s operational requirements, the Court may inquire into and determine the amount of any severance pay to which the employee may be entitled and the Court may make an order directing the employer to pay that amount