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

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.