Redundancy
Retrenchment and Severance Benefits Act
A redundancy situation arises when there is "surplus labour" in an organisation. If you are dismissed because of a redundancy situation you have been "retrenched".
There is a legal requirement for an employer to consult with its recognised unions and provide certain basic information about the proposed redundancies.
In the absence of a recognised union, the employer should consult with its employees. You have the right to ask for trade union advice and assistance.
The minimum severance benefit provided for retrenched workers under this legislation is:
between one (1) and four (4) years continuous employment: half a months basic salary (or two weeks) for each year
for five (5) years or more continuous employment: three quarters of basic salary (or three weeks) for each year.
If there is a Collective Agreement which is superior to the law, that will prevail.
There is nothing to stop an employer, either unilaterally or following negotiations with a recognised union, agreeing arrangements better that the minimum set out in law. These are sometimes referred to as VSEP Agreements.
What's missing ...
The most common criticisms of the Retrenchment and Severance Benefits Act from trade unions are:
the severance benefits are not generous enough
there is no provision for workers when a company goes into receivership
Many unions have also argued that, instead of employers paying severance, there should be a National Redundancy Fund run by the Government and financed by a levy on all employers.
Know Your Rights - Redundancy.pdfRedundancies
This useful flyer produced by the National Workers Union give broad information about redundancies and retrenchment.
Retrenchment and Severance Benefits Act.pdf