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

Notices

Bargaining Council for the Furniture Manufacturing Industry

KwaZulu Natal

Extension to Non-Parties of the Main Collective Agreement

Part 1

28. Termination of Contract of Employment

 

(1) When an employer contemplated dismissing one or more employees for reasons based on operational requirements, due regard shall be given to the provisions of Sections 189 and/or 189A of the Act.

 

(2) Notice shall be given by the employer or an employee to terminate a contract of employment as set out below: Provided that this shall not affect the right of an employer or employee to terminate a contract of employment without notice for any cause recognised by law as sufficient.
(a) Notice to be given of not less than:
(i) one week if the employer has been employed for six months or less;
(ii) two weeks if the employee has been employed for more than six months, but not more than one year;
(iii) four weeks if the employee has been employed for one year or more.
(b) In the event that an employee having been dismissed based on operational requirements (i.e. retrenched), the following terms shall apply:
(i) employees so affected shall receive first preference, should the positions that they previously occupied with the same employer, be available within a period of six months following the date of their dismissal.
(ii) upon re-employment as contemplated under sub -clause (b) (i) above, such employees shall not be paid less than the weekly rate of pay applicable as at the date of dismissal.
(c) Employees being dismissed as provided for in terms of sub-clause (1) above, shall be paid a retrenchment allowance:
(i) equal to one weeks' normal wages for every completed year of service;
(ii) In recognition of long service the following is payable in addition to the above
- 10 to twenty years service - one additional weeks normal wages
- Twenty years service and more - two additional weeks normal wages

[Part 1 Clause 28(2)(c) substituted by section 6 of Notice No. 601, GG45328 dated 15 October 2021]

(d) Despite the provisions of sub -clause (a), (i), (ii) or (iii) above, in the event that a more favourable notice period is granted by the employer, the more beneficiary notice period shall apply.
(e) An employer or employee may terminate the contract of employment without notice by:
(i) paying the employee; or
(ii) paying or forfeiting to the employer in lieu of notice, an amount not less than the wages the employee would have received in terms of sub-clause (a), (i), (ii), and (iii) above;
(iii) for such longer period as agreed upon by the employer and employee.
(f) Notice in terms of this Clause, shall not run concurrently with or shall not be given during—
(i) The holiday period referred to under Clause 13 and
(ii) any period of illness not exceeding two weeks in any one year.