In this week’s video I discuss all the various payments an employee is entitled to when they are retrenched. I start by discussing payments due when the employment relationship terminates (through the contract ending, resignation or dismissal), then payments due specifically when an employee is dismissed and then payments due when an employee is retrenched. This way you are given information relating to other ways the employment relationship terminates and what is paid out on termination.
In addition to the above I discuss other relevant information like how to calculate annual leave that is owed and when annual leave is paid out, when employees are not entitled to severance pay, when notice of termination starts for retrenched employees, how to calculate the daily rate for an employee paid on a monthly basis in accordance with the Basic Conditions of Employment Act and more.
My Section 189(3) notice of contemplated retrenchment letter can be found HERE if you would like to use it. It is my most downloaded document to date with great feedback from employers and managers who have used it.
If you would like further information on how to complete a Section 189(3) letter I have a video about that:
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Employment Relations Practitioner and Director of Fourie Employment Relations