What are you entitled to when you get retrenched?

What are you entitled to when you get retrenched?

Severance pay – a retrenched employee must at least be paid 1 week’s pay for each completed year of ongoing service. if the employee was employed for more than 6 months but less than 1 year, s/he must be paid 2 weeks’ notice pay; if the employee was employed for more than 1 year, s/he must be paid 4 weeks’ notice pay.

How much compensation do retrenched employees get?

While effecting retrenchment of the workmen, it is obligatory on the part of the employer to pay retrenchment compensation at the rate of 15 days wages (for every completed yaer) to be calculated at the last drawn salary of an employee.

What happens to your debt when you are retrenched?

This is to cover the value of the debt you owe should you pass away, or assist in paying off your debt if you are retrenched or disabled,” explained Wason. If you happen to lose your job due to retrenchment, then the policy will pay you out for up to six months, to help cover your loan repayments.

Can employee be retrenched?

The Industrial Disputes Act states that an employer can retrench an employee for any reason. The Supreme Court has held that the mere act of striking off an employee’s name from the employee roll for being absent from office without leave is also retrenchment.

Can one person be retrenched?

A company can only consider retrenchment of one or more employees if its economic, technological, structural or similar requirements justify the need to retrench. They believe the company has already made the decision to let people go. The process does not have to be acrimonious.

Is debt wiped after 6 years?

For most debts, the time limit is 6 years since you last wrote to them or made a payment. Your debt could be statute barred if, during the time limit: you (or if it’s a joint debt, anyone you owe the money with), haven’t made any payments towards the debt.

How long is the retrenchment notice period?

If employed for less than six months – one week’s notice; if employed for more than six months but not more than one year – two weeks’ notice and if employed for more than a year – four weeks’ notice. Domestic and farm workers, who have been employed for more than six months, must receive four weeks’ notice.

Amount of severance pay is equal to 15 days’ wages for each completed year of service. Under the Industrial Disputes Act, retrenched workers are entitled to 15 days’ wages for each completed year of service.

What is retrenchment exemption?

‘Retrenchment’ means the termination of the service, by the employer, of a workman for any reason other thana punishment imposed by way of disciplinary action. Section 10(10B) of the Income Tax Act provides exemption towards such retrenchment compensation received by the workman.

From the wording it is clear that section 191(12) applies where a single employee was consulted and subsequently retrenched. If more than one employee was retrenched, the CCMA has no jurisdiction – those employees must refer the dispute to the Labour Court.