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

National Bargaining Council for the Road Freight and Logistics Industry (NBCRFLI)

Main Collective Agreement

Part 6 : Termination of Employment

43. Payment for accrued leave not taken

 

 

1) On termination of employment, an employee must be paid-
a) for any accrued leave not taken; and
b) in respect of an incomplete leave cycle, an amount of not less than the number of pro-rata days calculated in terms of sub-clause 18(2).

 

2) The payment due to an employee in terms of sub-clause (1)-
a) must be paid at the wage the employee was receiving immediately before the date of termination;
b) may be reduced if an employee leaves employment without giving the requisite notice prescribed in clause 40, by an amount equivalent to the amount the employee would have received if the employee had worked during the notice period, unless the employer has waived such notice.

 

3) If an employee's employment terminates before that employee has qualified for annual leave in terms of clause 18-
a) the employer must complete in triplicate a Pro Rata Accrued Entitlement Advice Voucher in the form specified by the Council for this purpose (Annexure A5), and-
i) retain a copy;
ii) forward a copy within 24 hours of the termination of employment of the employee to the National Secretary of the Council; and
iii) hand the remaining copy to the employee for claim purposes;
b) the employee may submit a claim to the Council for-
i) accrued leave pay;
ii) accrued holiday pay bonus; and
iii) accrued sick and absence fund bonus.

 

4) In calculating the amount due to an employee in terms of sub-clause (4)(b), the following applies-
a) accrued leave pay is calculated in terms of clause 18(2);
b) accrued leave pay and accrued holiday pay bonus is calculated from-
i) the date of commencing employment with the employer; or
ii) the date of the employee's last annual leave; and/or last holiday pay bonus payment.
c) accrued leave pay and accrued holiday pay bonus is calculated after the employee has been credited with working days pro rata to the period of leave the employee would have been entitled to in terms of sub-clause (1)(b), according to the following formula:

Number of working days to be credited =

 

 

where X = the number of completed cycles provided in clauses 29(1)(b) and 30(1)(c) respectively since commencing employment or commencing the last period of leave and or the payment of holiday pay bonus.

 

5) Accrued leave pay due to an employee in terms of sub-clause (1) must not be handed to or accepted by the affected employee, but must immediately upon termination of services be remitted to the National Secretary of the Council. Payment by an employer of accrued leave pay, accrued holiday pay bonus or accrued sick and absence fund bonus directly to an employee will not absolve the employer of the obligation to remit the amount to the Council and no set-off will be permitted.

 

6) Accrued leave pay and accrued holiday pay bonus must be paid-
a) to the employee four weeks after the termination of the employee's employment or four weeks after the employee leaves other employment in the Industry, as the case may be;
b) immediately, to the employee, if the employee is dismissed for operational reasons or for incapacity; or
c) immediately, to the employee's estate, if the employee has died.