Question: My mother-in-law passed away on 18/03/09 and I need to work out a fair retrenchment package for the maid. What are the rules and what must I pay her to be fair. I need something in writing for the maid to see please. She may not believe me.

Answer: Quite simply retrenchment/severance packages are calculated as one weeks salary per 12 months of completed service. A months salary is also common procedure. No legislation requires pro-rata payment.

So: One weeks salary x number of years served + one months notice.

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