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

Notices

National Bargaining Council for the Clothing Manufacturing Industry

Main Collective Agreement

Part I : Provisions for the Non-Metro Areas

22. Severance Pay

 

 

(1) For the purposes of this section, operational requirements' means requirements based on the economic, technological, structural or similar needs of any 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 4.

 

(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 section 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 clause, the employee may refer the dispute in writing to the Council.