Wednesday, October 10th, 2018
When as an employee you face the risk of being retrenched many things go through your mind, one of those issues being what the retrenchment package would include.
Retrenchment packages are calculated by taking into account factors such as years of service with the employer, how much leave is owed to you, etcetera.
Legislation determines that you are entitled to one week’s salary for each completed year of service with your employer. If it so happens that you have left the employer’s service for a few months but are re-employed then you can resort to section 84 of the Basic Conditions of Employment Act. This section stipulates the following:
84 Duration of employment
(1) For the purposes of determining the length of an employee’s employment with
an employer for any provision of this Act, previous employment with the same employer must be taken into account if the break between the periods of employment is less than one year.
(2) Any payment made or any leave granted in terms of this Act to an employee
contemplated in subsection (1) during a previous period of employment must be taken into account in determining the employee’s entitlement to leave or to a payment in terms
of this Act
Hence, this section stipulates that if the interruption of your employment with your employer was twelve months or less, your service before such interruption may be included when calculating your package. Unfortunately, you will forfeit your years of service prior to the interruption if the interruption was for longer than twelve months.
Therefore, see to it that both you and your employer take this legal requirement into account when calculating your package in the event of retrenchment.
Author: Aimee Nel