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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 Collective Agreement in terms of Sec 32(2) of the LRA

Areas

Area C

37. Severance Pay or Retrenchment

 

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 shall endeavor to avoid retrenchments by attempting to transfer Employees, by implementing training or re-training, limiting or eliminating overtime, introducing short-time or allowing voluntary retirement and such other suitable alternatives.

 

37.3 Notwithstanding the requirements of sections 189 and 189A of the Labour Relations Act, 1995 an Employer in the Hairdressing & Cosmetology Industry who proposes retrenchment due to the operational requirements of his Establishment shall, not later than 30 (thirty) working days before the proposed date of notice of termination of service of any Employees, provide to the Bargaining Council and the Trade Union parties to the Council, the reasons for the proposed retrenchments, the names of the prospective retrenches and proof that discussions have been held with Employees to avoid such retrenchments.

 

37.4 Any Trade Union party is entitled to provide the Employer with a written response to the notification of proposed retrenchment, not later than 10 (ten) working days after the date of notifications.

 

37.5 The Employer and any Trade Union party who responds to the Employer shall attempt to reach consensus on the retrenchment proposals through consultation.

 

37.6 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 salary, for each completed year of service with the Establishment.

 

37.7 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.