South African Labour Law Made Easy Management

South African Labour Law Made Easy
A Guide and Reference for the Employer and
Meaning of dismissal
Automatically unfair dismissal
Rights of employees
Unfair dismissals
Dismissal for misconduct
Substantive fairness
Procedural fairness
Employees appointed on probation
Poor work performance
Fair procedure
Unsuitability or incompatibility
Ill Health or injury
Temporary illness or injury
Permanent incapacity
Dismissal Based on Operational Requirements
Retrenchment by employers with less than 50 employees
Parties to be consulted
Consultation process
Information to be disclosed in writing
Final decision
Retrenchment by employers with more than 50 employees
Strike or lockout
Replacement labour
Failure to comply with a fair procedure
Dispute referred to the labour court
Date of dismissal
Termination requirements
Notice periods
Fixed term contracts of employment
Payments on termination of employment
Certificate of service
Pro forma Letter of Suspension
Pro forma Notice to Attend a Disciplinary Hearing
Pro forma Notice of Intention to Retrench
Pro forma Notice of Retrenchment
Certificate of Service
The service contract between employer and employee can be terminated for a number of
reasons. If dismissal is the reason for termination the employer can only justify it on three
grounds, namely dismissal for misconduct, incapacity or for operational requirements of the
employer. Dismissal on any of the accepted grounds must be preceded by a fair procedure
(which differs for each type of dismissal). If an employer fails to comply with substantive
and procedural fairness in dismissing an employee, the employee will have a range of
remedies such as claims for compensation, re-employment or re-instatement.
A number of requirements have to be met when a contract of employment is terminated.
Employers must comply with notice periods, make certain payments on termination and
issue a certificate of service to the employee whose services have been terminated.
Meaning of
The following actions can constitute a dismissal:
an employer terminates a contract of employment with or
without notice;
an employee reasonably expected the employer to renew a
fixed term contract of employment on the same or similar
terms but the employer offered to renew it on less
favourable terms, or fail to renew it;
an employer refused to allow an employee to resume work
after she took maternity leave;
an employer who dismissed a number of employees for the
same or similar reasons has offered to re-employ one or
more of them but has refused to re-employ another; or
an employee terminates a contract of employment with or
Section 186 LRA 66 of 1995
without notice because the employer makes continued
employment intolerable for the employee (constructive
an employee terminated a contract of employment with or
without notice because the new employer, after a transfer,
provided the employee with conditions or circumstances at
work that are substantially less favourable to the employee
than those provided by the old employer.2
A dismissal will be regarded as automatically unfair if:
Unfair Dismissal
the employer dismisses an employee because of his/her
participation or support protected strike or protest action.
This means that
an employer will
the employee refused, to do any work normally done by an
not be able to
employee who at the time was taking part in a protected
show fairness of
strike or was locked out by the employer, unless that work
such a dismissal,
is necessary to prevent an actual danger to life, personal
since it will be
safety or health;
seen as
the employer compel the employee to accept a demand in
respect of any matter of mutual interest between the
employer and employee;
that the employee took action, or indicated an intention to
take action, against the employer by exercising any right
conferred by the LRA or participating in any proceedings in
terms of the LRA;
the employee is dismissed due to her pregnancy, intended
Section 197 and 197A of the LRA 66 of 1995
Section 187 LRA 66 of 1995
pregnancy, or any reason related to her pregnancy;
the employer dismisses an employee on any discriminatory
ground. It will not be seen to be discriminatory if the
dismissal is based on an inherent requirement of the job or
the employee has reached agreed retirement age.
the reason for the dismissal is due to a transfer, or a
reason related to a transfer4
The employee is dismissed for making a protected
An employer dismisses an employee for exercising his/her
right to freedom of association or becoming a member of a
workplace forum.6
Rights of
Every employee has the right to fair labour practices7
Every employee has the right not to be unfairly dismissed8
A dismissal will be unfair if the employer is unable to show that
the reason for dismissal is a fair reason [substantive fairness]
related to the employee's
capacity; or
it is based on the employer's operational requirements;
197 and 197A of the LRA 66 of 1995
42 of Protected Disclosures Act 12 of 2002
5 of the LRA 66 of 1995
23(1) Constitution of SA 108 of 1996
185 LRA 66 of 1995
188 of the LRA 66 of 1995
dismissalsbecause the
employer cannot
prove fairness of
that a fair procedure [procedural fairness] was followed.
When dismissing an employee the employer must take into
such a dismissal)
account the Code of Good Practice : Dismissal10
This Code is not intended as a substitute for disciplinary
codes and procedures where these are the subject of
collective agreements, or the outcome of joint decisionmaking by an employer and a workplace forum.
Dismissal for
Dismissal should be reserved for cases of serious
misconduct or repeated offences.
Generally, it is not appropriate to dismiss an employee for
a first offence, except if the misconduct is serious and of
such gravity that it makes a continued employment
relationship intolerable.
action short of
dismissal is
Examples of serious misconduct, are:
discussed in
chapter 4 and
Gross dishonesty; or
only dismissal as
Wilful damage to the property of the employer; or
the extreme
Wilful endangering of the safety of others,
measure of
Physical assault on the employer, a fellow employee,
discipline will be
clients or customers;
explained in this
Gross insubordination.
Schedule 8 of LRA 66 of 1995
Substantive Fairness
To ensure substantive fairness the following questions must
be answered:
did the employee contravene a rule or standard
regulating conduct in, or of relevance to, the
workplace? [Are the rules/standards included in the
company’s code of conduct, policies or employment
if a rule or standard was contravened, whether or not-
the rule was a valid or reasonable rule or standard?
the employee was aware, or could reasonably be
expected to have been aware, of the rule or standard?
[What steps were taken by the employer to make
employees aware of the rules/standards?]
the rule or standard has been consistently applied by
the employer? [Are employees who committed similar
offences in similar circumstances being treated
dismissal was an appropriate sanction for the
contravention of the rule or standard.[Does the penalty
fit the offence?]
Procedural fairness
When a breach of the disciplinary code takes place or
an offence allegedly took place the employer should
take the following steps:
The employer should conduct an investigation to
determine whether there are grounds for dismissal.
During the investigation the employer may suspend the
employee on full pay by notifying the employee of the
reasons for his/her suspension in writing. [See Form
If the investigation is completed and there are
sufficient grounds for conducting a disciplinary hearing
the employee must be informed in writing in a form
and language that the employee can understand of the
allegations against him/her and of the time, date and
venue where the hearing will take place and of the
rights of the accused employee. [See Form K2]
The employee should be given reasonable time [at
least 48 hours depending on the circumstances] to
prepare him/herself against the allegations made.
An objective and unbiased chairperson must be
appointed [may be anyone in-house or externally –
depending on the circumstances of the case].
The chairperson should keep minutes of the
During the hearing the chairperson must inform the
employee of his/her rights.
The employee is entitled to the assistance of a trade
union representative or a fellow-employee.
The employee must be granted the opportunity to state
a case in response to the allegations. He/she will have
the right to testify, call witnesses and cross-examine
the employer and witnesses.
The employee has the right to be informed in writing of
the decision and reasons for the decision taken by the
The employee must also be informed that he/she has
the right to refer the matter to a council with
jurisdiction or to the CCMA.
Discipline against a trade union representative or an
employee who is an office-bearer or official of a trade
union should not be instituted without first informing
and consulting the trade union.
Employers should keep records for each employee
specifying the nature of any disciplinary transgressions,
the actions taken by the employer and the reasons for
the actions.
Dismissal of
An employer may require a newly-appointed employee to
serve a probation period before confirming the
Appointed on
The employer must use the probation period to evaluate
the employee's performance. It should not be used to
replace employees who completed their probation periods
with new employees. This will not be consistent with the
purpose of probation.
No specific period of probation is prescribed but it should
be determined in advance and be of reasonable duration.
Factors to consider when deciding on a probation period
may include
The nature of the job
The time it takes to determine suitability for permanent
During the probationary period, the employer should give
an employee reasonable evaluation, instruction, training,
guidance or counselling in order to allow the employee to
render a satisfactory service.
If the employee’s performance is below standard, the
employer should advise the employee of any aspects in
which the employer considers the employee to be failing to
meet the required performance standards.
If the employer believes that the employee is incompetent,
the employer should advise the employee of the respects
in which the employee is not competent.
The employer may either extend the probationary period
or dismiss the employee provided that the employee is
given the opportunity to be assisted by a trade union
representative or a fellow-employee and to make
representation on the matter.
The employee must consider and respond to the
representation made by the employee on probation.
If the employer decides to dismiss the employee or to
extend the probationary period, the employer should
advise the employee of his or her rights to refer the matter
to a council having jurisdiction, or to the Commission.
Dismissal for reason of poor work performance during or on expiry of
the probationary period may be less compelling than would be the
case in dismissals effected after the completion of the probationary
Dismissal for
Incapacity may relate to either:
Poor work performance or
Illness or injury
Dismissal for
Incapacity - Poor
To determine a fair dismissal for poor work performance
the following questions should be answered.
Did the employee fail to meet a performance standard?
[Does the company have a performance appraisal system?]
If the employee did not meet a required performance
Whether the employee was aware, or could reasonably
be expected to have been aware, of the required
performance standard? [Did the company enter into a
performance agreement with the employee in meeting
certain targets or standards?]
Was the employee given a fair opportunity to meet the
required performance standard [in terms of time,
resources, training etc?]
Is dismissal an appropriate sanction for not meeting the
required performance standard? [can non performance be
addressed by any other measure?]
Fair Procedure
After probation, an employee should not be dismissed for
unsatisfactory performance unless the employer has given
the employee
appropriate evaluation, instruction, training, guidance or
counselling; and
a reasonable period of time for improvement and the
employee continues to perform unsatisfactorily.
The procedure leading to dismissal should :
include an investigation to establish the reasons for the
unsatisfactory performance.
An incapacity hearing should be held and the employee
be given the opportunity to state his/her case and to
be assisted by a trade union representative or a fellow
the employer should consider other ways, short of
dismissal, to remedy the matter.
Unsuitability or Incompatibility
'Unsuitability' means an employee is unsuited to his/her work
because of their disposition or character
'Incompatibility' means an employee does not 'fit in' to the working
environment and relate poorly to colleagues and clients.11
These grounds is not expressly stated as grounds for
dismissal but it will be dealt with as a form of poor work
performance because it affects the employee’s ability to
perform his/her job.
Dismissal for
Incapacity - Ill
Incapacity on the grounds of ill health or injury may be
temporary or permanent.
Health or Injury
Temporary Illness or Injury
If an employee is temporarily unable to work in these
Grogan Workplace Law chapter 12
circumstances, the employer should investigate the extent
of the incapacity or the injury.
If the employee is likely to be absent for a time that is
unreasonably long in the circumstances, the employer
should investigate all the possible alternatives short of
When alternatives are considered, relevant factors might
include :
the nature of the job;
the period of absence;
the seriousness of the illness or injury
and the possibility of securing a temporary replacement
for the ill or injured employee.
The employee should be given the opportunity to make
representations and the employer should respond to it.
Permanent Incapacity
In cases of permanent incapacity:
The employer should ascertain the possibility of securing
alternative employment; or
Adapting the duties or work circumstances of the employee
to accommodate the employee's disability.
factors which may be relevant in determining the fairness
of a dismissal for incapacity due to ill health or injury are:
The degree of incapacity.
The cause of the incapacity [In the case of certain
kinds of incapacity, for example alcoholism or drug
abuse, counselling and rehabilitation may be
appropriate steps for an employer to consider].
Employers are expected to accommodate work-related
illnesses or injuries by providing work less onerous
To ensure that a fair dismissal for ill health or injury the
following factors should be considered:
Is the employee is capable of performing the work?
If the answer is no, to what extent is the employee
able to perform the work?
How can the employee's work circumstances be
adapted to accommodate the disability?
Where this is not possible, how can the employee's
duties be adapted to accommodate the disability?
Dismissal Based
Are there any suitable alternative work available?
on Operational
A dismissal based on the operational requirements of an
employer is one that is based on the economic (financial
reasons), technological (new technology), structural
(restructuring) or similar needs of the employer.
The Code of Good Practice: Dismissal based on Operational
Requirements13 serves as a guideline when dismissing
employees for this reason.
Dismissals for operational requirements have been
categorised as "no fault" dismissals because the employee
is not responsible for the termination of employment.
Because retrenchment is a "no fault" dismissal and
because of its human cost, employers have particular
obligations of ensuring that all possible alternatives to
Section 189 and 189A of the LRA 66 of 1995
Code of Good Practice : Dismissal based on Operational Requirements - General Notice 1517 in
Government Gazette 20254 of 16 July 1999
dismissal are explored and that the employees to be
dismissed are treated fairly.
Retrenchment by employers with less than 50 employees14
Parties to be consulted
“Consult” means
If the employer contemplates dismissing one or more
listening to the
employees for reasons based on the employer's operational
advice, input and
requirements, the employer must consult
representation of
the other party,
and responding
to it before
any person whom the employer is required to consult
in terms of a collective agreement;
taking a decision.
if there is no collective agreement that requires
consultation a workplace forum
If no workplace forum any registered trade union
if no such trade union, the employees likely to be
affected by the proposed dismissals or their
representatives nominated for that purpose.
Consultation process
Proper consultation will include:
The opportunity to meet and report back to employees;
the opportunity to meet with the employer; and
the request, receipt and consideration of information.
189 LRA 66 of 1995
189A of the LRA 66 of 1995
37(1) BCEA 75 of 1997
64, 66, 67 and 76 of LRA 66 of 1995
The employer and the other consulting parties must
engage in a meaningful joint consensus-seeking
process and attempt to reach consensus on appropriate
measures to:
avoid the dismissals;
minimise the number of dismissals;
change the timing of the dismissals; and
mitigate the adverse effects of the dismissals;
A selection method for selecting the employees to be
dismissed. Avoid any discriminatory criteria. The LIFO
[last in first out] principle is an example of criteria
which is considered to be fair, provided that it does not
undermine the affirmative action program.
The severance pay for dismissed employees.
A mechanical ''checklist' approach must be avoided and
employers should consult in good faith in an honest
attempt to reach consensus.
Information to be disclosed in writing
The employer must issue a written notice [See Form
K3] inviting the other consulting party to consult with it
and disclose in writing all relevant information,
including, but not limited to :
the reasons for the proposed dismissals;
the alternatives that the employer considered before
proposing the dismissals, and the reasons for rejecting
each of those alternatives;
the number of employees likely to be affected and the
job categories in which they are employed;
The proposed method for selecting which employees to
dismiss. The employer must select the employees to be
dismissed according to selection criteria that have been
agreed to by the consulting parties or if no criteria have
been agreed, criteria that are fair and objective.
The time when, or the period during which, the
dismissals are likely to take effect;
the severance pay proposed;
any assistance that the employer proposes to offer to
the employees likely to be dismissed;
the possibility of the future re-employment of the
employees who are dismissed. Retrenched employees
should receive preference if the employer again hires
employees with comparable qualifications; [See Form
the number of employees employed by the employer;
the number of employees that the employer has
dismissed for reasons based on its operational
requirements in the preceding 12 months.
The employer must allow the other consulting party an
opportunity during consultation to make representations
about any matter relating to the proposed dismissals.
The employer must consider and respond to the
representations made and state the reasons for
disagreement with the other party. Written representations
must be responded to in writing.
The onus will rest on the employer to prove that any
information that it has refused to disclose is not relevant.
Final Decision
After proper consultation the final decision to dismiss
employees rests with the employer.
Retrenchment by employers with more than 50 Employees15
An employer who contemplates dismissing at least:
10 employees, if the employer employs up to 200
20 employees, if the employer employs more than 200, but
not more than 300, employees;
30 employees, if the employer employs more than 300, but
not more than 400, employees;
40 employees, if the employer employs more than 400, but
not more than 500, employees; or
50 employees, if the employer employs more than 500
employees; or
the number of employees that the employer contemplates
dismissing plus the number of employees that have been
dismissed by reason of the employer's operational
requirements in the 12 months prior to the employer
issuing a notice is equal to or exceeds the numbers
specified above.
Employee may participate in a strike and employers may
lock out employees.
Consulting parties may agree to vary the time periods for
facilitation or consultation.
The CCMA must appoint a facilitator to assist the parties
engaged in consultations if the employer has in its notice
requested facilitation; or consulting parties representing
the majority of employees have requested facilitation and
have notified the Commission within 15 days of the notice.
If a facilitator is appointed and 60 days have elapsed from
the date on which notice was given :
the employer may give notice to terminate the contracts of
employment in accordance the BCEA16
A registered trade union or the employees who have
received notice of termination may either give notice of a
strike or refer a dispute concerning whether there is a fair
reason for the dismissal to the Labour Court.
If a facilitator is not appointed :
A party may not refer a dispute to a council or the CCMA
unless a period of 30 days has lapsed from the date on
which notice was given.
Once the prescribed periods have elapsed :
The employer may give notice to terminate the contracts of
employment.; and
A registered trade union or the employees who have
received notice of termination may give notice of a strike
or refer a dispute concerning whether there is a fair reason
for the dismissal to the Labour Court.
Notice of the commencement of a strike may be given if
the employer dismisses or gives notice of dismissal before
the expiry of the prescribed periods.
A consulting party may not :
Give notice of a strike in terms of this section in respect of
a dismissal, if it has referred a dispute concerning a fair
reason for dismissal to the Labour Court;
Refer a dispute about whether there is a fair reason for a
dismissal to the Labour Court, if it has given notice of a
If a trade union gives notice of a strike:
No member of that trade union, and no employee to whom a
collective agreement concluded by that trade union dealing
with consultation or facilitation in respect of dismissals by
reason of the employers' operational requirements has been
extended, may refer a dispute concerning a fair reason for
dismissal to the Labour Court. Any referral to the Labour Court
is deemed to be withdrawn.
Strike or Lockout17
Every employee has the right to strike and every employer
has recourse to lock-out if the issue in dispute has been
referred to a council or to the CCMA and a certificate
stating that the dispute remains unresolved has been
issued; or a period of 30 days, or any extension of that
period agreed to between the parties to the dispute, has
elapsed since the referral to the CCMA [except where a
facilitator was appointed]
and after that, in the case of a proposed strike, at least 48
hours' notice of the commencement of the strike, in
writing, has been given to the employer, unless :
the issue in dispute relates to a collective agreement to be
concluded in a council, in which case, notice must have
been given to that council; or
the employer is a member of an employers' organisation
that is a party to the dispute, in which case, notice must
have been given to that employers' organisation; or
In the case of a proposed lock-out, at least 48 hours'
notice of the commencement of the lock-out, in writing,
has been given to any trade union that is a party to the
dispute, or, if there is no such trade union, to the
employees, unless the issue in dispute relates to a
collective agreement to be concluded in a council, in which
case, notice must have been given to that council.
The requirements above do not apply to a strike or a lock-out if-
The parties to the dispute are members of a council, and
the dispute has been dealt with by that council in
accordance with its constitution;
the strike or lock-out conforms with the procedures in a
collective agreement;
the employees strike in response to a unprotected lock-out
the employer locks out its employees in response to their
taking part in a unprotected strike.
an employer may only lock out in respect of a dispute in
which a strike notice has been issued;
Replacement Labour18
An employer may not take into employment any person to
continue or maintain production during a protected strike if
the whole or a part of the employer's service has been
designated a maintenance service; or for the purpose of
performing the work of any employee who is locked out,
unless the lock-out is in response to a strike.
'Take into employment' includes engaging the services of a
temporary employment service or an independent
Failure to Comply with a Fair Procedure
If an employer does not comply with a fair procedure, a consulting
party may approach the Labour Court for an order :
compelling the employer to comply with a fair procedure;
interdicting or restraining the employer from dismissing an
employee prior to complying with a fair procedure;
directing the employer to reinstate an employee until it has
complied with a fair procedure;
make an award of compensation.
Dispute Referred to the Labour Court
Disputes that concerns the dismissal of employees the Labour Court
must find that the employee was dismissed for a fair reason if
the dismissal was to give effect to a requirement based on
the employer's economic, technological, structural or
similar needs;
the dismissal was operationally justifiable on rational
Date of
there was a proper consideration of alternatives; and
selection criteria were fair and objective.
The date of dismissal is the earlier of :
the date on which the contract of employment terminated;
the date on which the employee left the service of the
When the employer:
has offered to renew on less favourable terms, or has
failed to renew, a fixed-term contract of employment, the
date of dismissal is the date on which the employer offered
the less favourable terms or the date the employer notified
the employee of the intention not to renew the contract;
refused to allow an employee to resume work, the date of
dismissal is the date on which the employer first refused to
allow the employee to resume work;
refused to reinstate or re-employ the employee, the date
of dismissal is the date on which the employer first refused
to reinstate or re-employ that employee.
Section 190 LRA 66 of 1995
Notice periods20
A contract of employment may be terminated by any of the
parties only on notice of not less than:
1 week, if the employee has been employed for 6 months
or less
If an employer
terminates the
contract it must
than 6 months but not more than 1 year
always be for a
fair reason and
4 weeks, if the employee has been employed for 1 year or
more; or
according to a
fair procedure as
2 weeks, if the employee has been employed for more
The employee may not be required to give longer period of
notice than required of the employer.
Notice of termination of a contract of employment must be
required by the
given in writing, except when it is given by an illiterate
LRA. Never
employee. If an employee is not able to understand it, the
terminate a
notice must be explained orally in an official language the
contract by
employee reasonably understands.
merely giving
The employer may not give notice of termination of a
contract of employment during a leave period and may not
run concurrently with any period of leave to which the
employee is entitled.[excluding sick leave]
A dismissed employee has the right to challenge the
fairness of a dismissal even if the contract of employment
was terminated with the required notice.
An employer or an employee may terminate a contract of
employment without notice for any cause recognised by
law.[Examples: Summarily dismissal after being found
guilty of a serious offence or when a fixed term contract
An employer may pay an employee in lieu of notice.
Section 37 BCEA 75 of 1997
[Example the employer pays the employee instead of
requiring the employee to work his/her notice period] If an
employee gives notice of termination of employment, and
the employer waives any part of the notice, the employer
must pay the employee for that period of notice.21
Fixed term
An employer need not give notice of termination if the
Contracts of
contract states an expiry date. The contract will
automatically terminate at the end of the specified period.
Beware of creating expectations with employees of renewal of
fixed term contracts. If an employer fails to renew or renew on
less favourable terms the employee may claim dismissal.22
Payments on
Termination of
On termination of employment, an employer must pay an
employee :
For any paid time off that the employee is entitled to, that
the employee has not taken;
Annual leave due to the employee on termination of
If an employment contract is terminated due to operational
requirements of the employer, the employee must be paid
severance pay of not less than 1 week for each completed
per year worked.24 Employers and employees may agree
on more favourable severance packages.
If an employee unreasonably refuses to accept the
employer's offer of alternative employment with that
employer or any other employer, he/she will not be
entitled to severance pay.
38 BCEA 75 of 1997
186(b) LRA 75 of 1997
40 BCEA 75 of 1997
41 of BCEA 75 of 1997
Certificate of
On termination of employment an employer must issue an
employee with a certificate of service stating the following
information. [See Form K5]
Section 42 of the BCEA 75 of 1997
Date _______________
Dear ________________
This letter serves to inform you that your services as _______________ (job title)
are suspended from ______________________ (date) pending the outcome of an
investigation and possible hearing.
You will be suspended from all duties on payment of your full salary.
We are likely to need your assistance in regard to the investigation and will request
your attendance in this regards when necessary.
Yours faithfully
NAME OF EMPLOYEE: ____________________________________________________
Take notice that a disciplinary hearing will be held to investigate the following alleged
(Describe the type and category of the alleged offence and give full details of the time, place
and date of the alleged offence)
The disciplinary hearing will be held on ______________________________ (date and
time) at _______________________________(place)
You are hereby informed that your have the following rights:
The right to representation (not legal representation)
The right to an interpreter
The right to consultation
The right to cross-examine the complainant and the witnesses
The right to testify and to call witnesses
If you refuse/fail to attend the disciplinary hearing, the proceedings shall take place in your
Dear ___________________
Due to financial difficulties that the company currently experience, the company is forced to
take certain measures to remain financially viable. As these measures may have an impact
on employees, you and your representatives (union representatives) are accordingly invited
to a meeting that will be held on:
____________________(date and time) at ___________________ (place) where a
discussion will take place and a serious attempt will be made to reach consensus on the
following aspects.
1. Reasons for these measures and alternatives to avoid possible retrenchments.
2. The number of employees that may be affected.
3. Job categories that may be affected.
4. Selection criteria.
5. Time when, or the period during which the dismissals are likely to take effect.
6. Severance pay.
7. Possible assistance that the employer can offer to the employees likely to be dismissed.
8. The possibility of future re-employment of employees who are likely to be dismissed.
You will have the opportunity to make representations regarding the above. The employer
will consider these representations in good faith.
EMPLOYER ____________________
EMPLOYEE ____________________ (Acknowledge receipt of this letter)
DATE __________________________
WITNESS ______________________
Dear __________________________
As you are aware we had discussions with employees’ on________ [dates] where
management consulted with the union/employees on possible retrenchments due to
financial difficulties that the company currently experience. After due consideration of all
relevant factors retrenchment of certain employees are inevitable.
We regret to advise you that your position has been affected by this decision and your
services will therefore be terminated with effect from ____________________. In order for
you to find alternative employment you do not have to work your notice period, which will
be paid by the employer. Your services will therefore terminate on receipt of this letter.
You will be paid a severance pay of one week’s salary for every completed year worked.
Should a vacancy occur for which you are qualified within the next six months we will offer
you first choice for such position. However, we cannot guarantee that we will be able to
offer you re-employment. In order to enable us to contact you, please inform us of your
permanent address as well as contact details. Should we be in a position to offer you reemployment we will contact you at the given address and contact number. If we do not hear
from you within 10 working days we will assume that you do not wish to take up the offer.
A pay advice is attached which specifies what monies have been paid to you and how these
have been calculated. Included in this amount is payment in lieu of notice.
We wish to thank you for your loyal service and we wish you every success for the future.
Yours faithfully
---------------------------------------------------------------------------------------------------------------ACKNOWLEDGEMENT OF RECEIPT OF LETTER
I, the undersigned hereby acknowledge receipt of this letter concerning notice of
retrenchment. I also acknowledge and accept the amount of R __________________ as
detailed on the pay advice being monies due to me in full and final settlement of all and any
claims and/or disputes arising from termination of my contract of service either now or in
the future.
NAME AND SURNAME OF EMPLOYEE _____________________________________
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