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

Notices

Motor Industry Bargaining Council (MIBCO)

Extension to Non-Parties of the Main Collective Agreement

Division A

Clause 7 : Termination of Employment

7.1 Termination of Service

Purchase

(1)	Period of Notice

Division B employees

(a)

Subject to the provisions of any written Agreement between employer and employee stipulating a period in excess of that provided for in this clause, an employer or his employee shall give notice of intention to terminate a contract of service of not less than one week in the case of weekly-paid employees and two weeks in the case of monthly-paid employees; provided that in the event of an employer cancelling or changing a contract providing for the payment of commission to a parts salesperson or supply sales person and such employee gives notice of his intention to terminate his contract of employment, the employee may at his option reduce the notice period to one week, notwithstanding any written Agreement stipulating longer notice.

(b)

The notice referred to in sub-clause (1) hereof shall be given in writing, shall take effect from the day on which it is given and may be given on any day of the week or month: Provided that the period of notice shall not run concurrently with, nor shall notice be given during the employee's absence on annual leave or sick leave.

All other employees

(a)

An employer or his employee for whom wages are prescribed in this Agreement, except for employers and employees covered in terms of Division B of this Agreement, who gives notice to terminate a contract of employment shall give not less than one day's notice in the first week of employment and after the first week of employment, not less than one week in the case of weekly-paid employees and two weeks in the case of monthly-paid employees. Notwithstanding any written Agreement stipulating longer notice.

(b)

(2)	Termination without notice

An employer or employee may terminate the contract without notice by paying or forfeiting to the employee/employer, as the case may be, an amount equal to that which the employee is earning during a week at the time of such termination:

Provided that this sub-clause shall not affect—

(a)	the right of an employer or employee to terminate the contract without notice for misrepresentation or any cause recognised by law as sufficient;

(b)

(i)	a written Agreement between an employer and his employee which provides for a period of notice of equal duration on both sides and for longer than that prescribed in this clause;

(ii)	the payment or forfeiture in lieu of notice shall correspond to the period of notice agreed upon;

(c)	the right of an employer to claim whatever notice forfeiture is applicable in the case of an employee who deserted:

Provided further that where the earnings of an employee at the date of termination have been reduced by deductions in respect of short-time the expression "is earning during a week at the time of such termination" shall be deemed to mean "would have received at the time of such termination if no deductions had been made in respect of short-time".

(3)	Formalities regarding notice of termination

The notice prescribed in sub-clause (1) may be given on any work-day and shall take effect from the day on which it is given: Provided that—

(a)	the period of notice shall not run concurrently with, nor shall notice be given during, an employee's absence on annual leave.

(b)	notice shall not be given during an employee's absence on sick leave granted either in terms of clause 5.2 of Division A or any sick fund scheme conducted by the Council unless such employee is permanently unfit for normal work.

(c)	Notice of termination of a contract of employment must be given in writing except when it is given by an illiterate employee.

(d)	If an employee who receives notice of termination indicates to his employer that he is not able to understand it, the notice must be explained orally by, or on behalf of, the employer to the employee in an official language the employee reasonably understands.

(4)	Desertion of employee

Notwithstanding anything to the contrary contained in this Agreement, should any money owing by the employer to the employee by way of wages be insufficient to meet the full amount of the forfeiture referred to in subclauses (1) and (2) above, the employer shall be entitled to recover such amount from other benefits (if any) accruing to such employee at the time of his desertion.