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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 D

37. Severance or Retrenchment Pay

 

37.1 For the purposes of this clause 37 "operational requirements" means requirements based on the economic, technological, structural or similar needs of an Employer.

 

37.2 An Employer must pay an Employee who is dismissed for reasons based on the Employer's operational requirements severance pay equal to at least 1 (one) week of the Employee's basic wage for each completed year of service with the Establishment.

 

37.3 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.

 

37.4 Employees who are paid commission must receive PSC, in addition to the amount specified in clause 37.2, in accordance with the calculation set forth in annexure "E".