Labour Law

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Retrenchment

Question: If I want to retrench my char that works 1 day a week for me for the last 2 years, due to my affordablitity. What do I have to pay her and must I give her notice?

Answer: I would advise to play it safe, as nowadays all and sundry refer matters to the CCMA, more especially the previously disadvantaged, as the CCMA is a free service and is promoted incorrectly as an “ATM”, a severance of 6 weeks salary incorporating one weeks notice and one week per each of the two years of service is fair and just. I suggest you give her a letter stating that due to financial reasons you are unable to retain her services and she is thus retrenched with immediate effect. Include the breakdown of the severance package. If you are in dire financial straits currently, and cannot afford the 6 week severance once off, nothing stops you from paying the amount off in instalments to suit your budget. For example, you can state on the letter you receive three weeks severance immediately and three weeks balance of severance at the end of the following month. Bear in mind that a weeks severance for her is her salary for that day. Further note that domestic labour law is far more relaxed than corporate.

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One Response to “Retrenchment”

  1. thuli says:

    iam 30years old i work for this company for twoyears and they just told us that they are retrenching us because the company does not have money so how much packege they must give us?

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