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

Bargaining Council for the South African Road Passenger (SARPBAC)

Main Collective Agreement

26. Retrenchment/Severance Package

 

 

26.1 Where an Employee is eligible for severance pay following dismissal for operational requirements, this shall be calculated as follows:

 

26.1.1 1,5 weeks per completed year of continuous service for Employees with 1 to 3 years  service;

 

26.1.2 an amount equal to 4,5 week's pay for Employees with 4 completed years of continuous service;

 

26.1.3 an amount equal to 5,5 weeks' pay for Employees with 5 completed years of continuous service;

 

26.1.4 an amount equal to 6,5 weeks' pay for Employees with 6 completed years of continuous service;

 

26.1.5 one week  per completed  year of continuous  service for  Employees with 7 or more years of service.

 

26.2 Provided that the provisions of this Agreement shall not supersede the provisions of any other common law agreement which may be binding upon employers and/or employees in relation to the payment of a severance pay following upon dismissal for operational requirements.