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

Sectoral Determinations

Sectoral Determination 7 : Domestic Worker Sector, South Africa

Part G : Termination of Employment

27. 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 domestic worker who is dismissed for reasons based on the employer's operational requirements severance pay equal to at least one week's full pay for each completed year of continuous service with that employer.


(3) A domestic worker 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 a domestic worker'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 domestic worker may refer the dispute in writing to the CCMA. Illustrative examples of the employers' 'operational requirements' include if the employer moves to another city or country; if the employer is no longer able to afford a domestic worker; if a child no longer requires a child-minder; if an employer moves to a smaller house and as a result no longer requires a domestic worker.