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

Notices

Bargaining Council for the Civil Engineering Industry: Conditions of Employment Collective Agreement

Chapter 4 : Regulations for Contract of Employment

4.5. Severance pay

 

4.5.1 For the purpose of this clause, 'operational requirements' means requirements based on the economic, technological, structural or similar needs of any employer.

 

4.5.2 An employer must pay an employee who is dismissed for reasons based on the employer's operational requirements severance pay equal to at least one week's remuneration for each completed year of continuous service with that employer for the first eight years of service, and, two weeks remuneration for every completed year of continuous service from year nine onwards by that employee, calculated in accordance with Clause 6.1 of this agreement. Current company arrangements in regard to severance pay, that are more favourable, will not be affected by this sub-clause.

 

4.5.3 An employee who unreasonably refuses to accept the employer's offer of alternate employment with that employer or any other employer is not entitled to severance pay in terms of sub-clause 4.5.2 above.

 

4.5.4 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.

 

4.5.5 Notification to the Bargaining Council;
(a) An employer must notify the bargaining council when contemplating termination of employment of one or more employees for reasons related to its operational requirements.
(b) Once the affected employee/s services have been terminated, the employer must, within 30 days of such termination, inform the bargaining council, in writing, of the number and occupational categories of the employee's that have been retrenched

 

4.5.6 On completion of a limited duration contract the Employer shall pay the Employee a completion gratuity of one weeks' basic wages per completed year of service.