Labour Law

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Retrench an Employee

Question:

Unfortunately we have to retrench an employee from our Medical practice. What kind of notice period must we give this person? Can we ask him to leave at the end of the month and then pay his outstanding salary and severance pay? Or must we give him a months notice?

Answer:

You can ask the employee to leave earlier as long as you pay for this period. Further, the remainder of the severance package is one months notice in addition to one weeks salary per 12 months of completed service. There is no pro-rata applicable.

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