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

Notices

Bargaining Council for the Hairdressing and Cosmetology Services (Semi-National)

Main Collective Agreement

20. Severance or Retrenchment Pay

 

 

20.1 An employer who terminates the services of one or more of his employees owing to operational requirements shall be obliged to pay each employee the following remuneration or basic salary or wages in lieu of severance pay:
20.1.1 (twenty-four) hours' remuneration or basic salary or wages if the employee has been employed for a period of one month or less; thereafter;
20.1.2 six days' remuneration or basic salary or wages for each completed year of service or part thereof for an employee who has been employed for less than five consecutive years;
20.1.3 seven days' remuneration or basic salary or wages for each completed year of service or part thereof for an employee who has been employed for five to ten consecutive years;
20.1.4 eight days' remuneration or basic salary or wages for each completed year of service or part thereof for an employee who has been employed for ten consecutive years or more.
20.1.5 in the case of an employee who is employed on a commission-only structure, severance or retrenchment pay, in terms of clause 20.1.1 to 20.1.4, shall be calculated:
20.1.5.1 in accordance with the Remuneration/Basic Salary/Wages Schedule for that area; plus
20.1.5.2 20% of their Average PSC (Personal Services Commission) earned in the past 12 months.