Labour Law

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Separation Agreement

Question:

A friend of mine signed a Separation Agreement with his company who wanted to retrench him after only 3 months in the job as at least he managed to secure 2 months salary with the monies to be paid into his a/c the day after the agreement was signed, which also terminated the employment with immediate effect. The company never paid in the money and thereafter told him that he must come in for a disciplinary because of material conflict. He knew for 6 months that he was going to be retrenched and they found stuff on his computer leading to this. Can they withhold payment after they have already signed the agreement? How can he go for a disciplinary if he is no longer an employee? He has no money to pay his bills or maintenance for his children.

Answer:

By rights if his contracted has been terminated then he is no longer an employee and cannot now be brought into an enquiry. I suggest he approach his local Dept of Manpower/Labour and lodge a formal complaint of non payment of monies as per agreement.

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