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

Notices

Bargaining Council for the Fast Food, Restaurant, Catering and Allied Trades

Extension to non-parties of the Main Collective Agreement

16. Termination of Employment

 

A. Notice of termination of employment

 

(1) A contract of employment terminable at the instance of a party to the contract may be terminated only on notice of not less than—
(a) one week if the employee has been employed for six months or less;
(b) two weeks if the employee has been employed for more than six months, but not more than one year;
(c) three weeks, if the employee has been employed for one year or more.

 

(2) The employer and employee may agree to a longer notice period, but the agreement may not require or permit an employee to give a period of notice longer than that required of the employer.

 

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

 

(4) If an employee who received notice of termination 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 reasonable understands.

 

(5) Notice of termination of a contract of employment given by an employer must—
(a) not be given during any period of leave to which the employee is entitled to in terms of this determination.
(b) not run concurrently with any period of leave to which the employee is entitled to in terms of this determination, except sick leave.

 

(6) Nothing in this clause affects the right—
(a) of a dismissed employee to dispute the lawfulness or fairness of the dismissal in terms of Chapter VIII of the Labour Relations Act, 1995, or any other law; and
(b) of an employer or an employe to terminate a contract of employment with or without notice for any cause recognized by law.

 

B. Payment instead of notice

 

(1) Instead of giving an employee notice in terms of this clause, an employer may pay the employee the wages the employee would have received, if the employee had worked during the notice period.

 

(2) If an employee gives notice of termination of employment, and the employer waives any part of the notice, the employer must pay the wages referred to in sub clause 16(1), unless the employer and the employee agree otherwise.

 

C. Payments on termination

 

(1) On termination of employment, an employer must pay an employee all monies due to the employee including—
(a) any remuneration that has not been paid;
(b) any paid time off that the employee is entitled to in terms of clause 9(3) or 9(6) that the employee has not taken;
(c) remuneration calculated in accordance with clause 11(9) for any period of annual leave due in terms of clause 11(1) that the employee has not taken; and
(d) if the employee has been in employment longer than four months, in respect of the employee's annual leave entitlement during an incomplete annual leave cycle as defined in sub clause 11(1)—
(i) one day's remuneration in respect of every 17 days on which the employee worked or was entitled to be paid; or
(ii) remuneration calculated on any basis that is at least as favourable to the employee as that calculated in terms of subparagraph (i).

 

D. Severance pay

 

(1) An employer must pay an employee who is dismissed for reasons based on the employer's operational requirements, severance pay equal to one week's remuneration for each completed year of continuous service with that employer.

 

(2) 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 in terms of sub clause I6(D)(2). The payment of severance pay in compliance with this clause does not affect an employee's right to any other amount payable according to law.

 

(3) If there is a dispute only about the entitlement to severance pay in terms of this clause, the employee may refer the dispute in writing to the Council for con-arb proceedings.

 

(4) The Council must attempt to resolve the dispute through conciliation and if the disputes remain unresolved, the employee may refer it to arbitration.