Is annual leave paid out on termination?

You are entitled to be paid your ordinary rate of pay when you take annual leave. This does not include any overtime, penalty rates, allowances or bonuses. If you are dismissed (sacked) or resign from your job, you should be paid any annual leave that you haven’t taken.

What are the rules for retrenchment in South Africa?

South African law, specifically section 189 of the Labour Relations Act, states that employers cannot retrench employees without following due process. Failure to do so could land the employer in legal hot water (more on this later in the feature).

What are the rules for retrenchment?

The retrenchment procedure as laid down in the Labour Relations Act (LRA) must be followed properly and in good faith by the employer. The employer must also prove that he/she has shared with the targeted employees (or their representatives) all documentary and other information pertinent to the retrenchment.

What is the notice period for retrenchment?

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.

What does it mean to retrench an employee in South Africa?

Some employers are under the impression that retrenching an employee is as simple as issuing a notice of termination of the employment relationship based on the operational requirements of the company.

When is an employee entitled to a retrenchment package?

When the employee enters into an agreement with his/her employer to be retrenched, not to claim unfair dismissal and not to claim additional pay, in return for payment of a retrenchment package which includes his/her severance pay, leave, other pay s/he is legally entitled and additional benefits.

When to take annual leave in South Africa?

the accrual may also be allowed at 1,25 days per month in the case of a 5-day week worker, or 1,5 days per month for a 6-day week worker and so on. annual leave can only be taken by agreement between employer and employee. annual leave may not be taken during any other period of leave that the employee is entitled to in terms of this Act.

When do employees have the right to strike in South Africa?

The employer may effectively not take a decision to dismiss during the first 30 days, or give notice of termination of employment before 60 days lapsed. Employees have the right to strike or to refer the matter to the Labour Court once notice has been given by the employer. How do I select employees to be retrenched?