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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Furniture Manufacturing Industry

Western Cape

Extension to non-parties of the Main Collective Agreement

Part l

B - Terms and conditions of employment

Clause 33 - Severance pay

 

(1) On the termination of an Employee's contract of employment as a result of any of the following:—
(a) retrenchment;
(b) short time;
(c) redundancy.

Such Employee shall receive from his Employer severance pay. For the purpose of calculating severance pay, service of ten months or more shall be deemed as a full year's service for the first year only. Thereafter severance pay shall be calculated on the basis of one week's wage plus, an additional week's wage per completed year of service.

 

(2) The severance pay payable by the Employer to the Employee pursuant to sub-clause (1) above shall be the sum of:—
(a) one week's wages: plus thereafter,
(b) one additional week's wages for each completed year of service: plus thereafter
(c) In recognition of long service the following payable in addition to the above:—
(i) 5 to 10 years service - one additional week's wage
(ii) 10 to 15 years service - two additional week's wages
(iii) 15 to 20 years service - three additional week's wages,
(iv) 20 years service and more - four additional week's wages

 

(3) Employees whose services are terminated for reasons related to operational requirements shall:—
(a) receive first preference should the positions that they previously occupied with the same employer become available within a period of six months following the date of their retrenchment; and
(b) On the retrenched employee's re-employment, as stipulated in sub-clause (3)(a) here above, such employee shall not be paid less than their wage rate applicable as at the date of their retrenchment.

 

 


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