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 Main Collective Agreement

Areas

Area A

37. Severance or Retrenchment Pay

Purchase

37.1	An Employer that terminates the services of one or more Employees as a result of operational requirements shall be obliged to pay each Employee the following remuneration or Basic salary or wages in lieu of severance pay:

37.1.1

1 (one) day's remuneration or Basic salary or wages if the Employee has been employed for a period of 1 (one) month or less;

37 1.2

6 (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 a period less than 5( five) consecutive years;

37.1.3

7 (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 more than 5 (five) but less than 10 (ten) consecutive years;

37.1.4

8 (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 10 (ten) consecutive years or more;

37.1.5

in the event of an Employee who is employed on a commission-only structure, severance or retrenchment pay, in terms of clause 22 above, shall be calculated;

37 1.5.1

in accordance with the Remuneration/Basic Salary/Wage Schedules for that Area; plus

37.1.5.2

37.1.5.2 the following percentages of their Average PSC (Personal Services Commission) earned in the past 12 months, being:

37.1.5.2.1

21% (twenty one percent) for the period 1 June 2023 to 31 May 2024 in respect of Parties and in respect of non-parties, on such date as determined by the Minister of Employment and Labour in terms of section 32 of the Act, until the 31st of May 2024;

37.1.5.2.2

22% (twenty two percent) for the period 1 June 2024 to 31 May 2025; and

37.1.5.2.3

23% (twenty three percent) for the period 1 June 2025 to 31 December 2025.

37.2	An example of the calculation envisaged in this clause 37 is reflected in annexure "E".