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

Notices

Bargaining Council for the Furniture Manufacturing Industry

Western Cape

Extension to non-parties of the Main Collective Agreement

Part l

B - Terms and conditions of employment

Clause 26 - Severance pay

 

(1) On the termination of an Employee's contract of employment as a result of any of the following:—
(a) retrenchment;
(b) short time;
(c) redundancy.

Such Employee shall receive from his Employer severance pay: Provided that the Employee has served one year's continuous service with such Employer.

 

(2) The severance pay payable by the Employer to the Employee pursuant to sub-clause (1) above shall be the sum of:—
(a) one week's wages: plus thereafter,
(b) one additional week's wages for each completed year of service

 

(3) Employees whose services are terminated for reasons related to operational requirements shall:—
(a) receive first preference should the positions that they previously occupied with the same employer become available within a period of six months following the date of their retrenchment; and
(b) On the retrenched employee's re-employment, as stipulated in sub-clause (3)(a) here above, such employee shall not be paid less than their wage rate applicable as at the date of their retrenchment.

 

 


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