Acts Online
GT Shield

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


Bargaining Council for the Hairdressing Trade (Cape Penninsula)

Main Collective Agreement

18. Severance Pay



1. For the purposes of this clause “operational requirements” means requirements based on the economic, technological, structural or similar needs of an 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 of the employee's basic wage for each completed year of service with the establishment.


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.


18.4 Employees who are paid commission must receive in addition to the amount specified in clause 18.2 pro rata commission based on 20% of the average net monthly personal service commission earned during the preceding twelve months. Personal service commission excludes commission on retail sales and VAT.

[GG30560, Government Notice No. 1176 inserted the above subclause, however the numbering convention differs from the original agreement.]