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Company Closed Down – Breach of Terms

Question:

The construction company my wife worked for closed down. The employment contract states that they will pay out 4 (four) weeks severance pay for every year. She was employed for just over a year, so it boils down to about R7000. Is there an easy and cheap way to get the money out of them? Cause it certainly ain’t worth it if we have to cough up much of the money to fees and if the thing say drags for ever. Your help will be much appreciated.

Answer:

My suggestion is that she lodge a case at the CCMA for breach of terms and conditions of employment contract. This is a free service and if she is successful in the matter (which she should be if they have not paid as per contract) the CCMA will issue an award in her favour. This award can be enforced by law and ensure payment. Again to get an award enforced is merely an application and again free. Normally the company’s decide to pay up once they receive the notice for the CCMA case as they don’t want the hassle. Good Luck!

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