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WCLawyer, Attorney
Category: South Africa Law
Satisfied Customers: 15597
Experience:  L.LB (UOVS)
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Retrenchment / redundancy - what are the minimum benefits a

Customer Question

Retrenchment / redundancy - what are the minimum benefits a company has to pay out?
Submitted: 5 years ago.
Category: South Africa Law
Expert:  WCLawyer replied 5 years ago.
Good day.

In terms of the Basic Conditions of Employment Act, one week's salary for every completed year that you have worked for the company.
Customer: replied 5 years ago.
Does this apply to monthly paid employees too?
Expert:  WCLawyer replied 5 years ago.

It applies to all employees that work more than 24 hours per month.


To convert your monthly remuneration, you have to look at section 35(3) that reads:


An employee’s monthly remuneration or wage is four and one-third times the employee’s weekly remuneration or wage, respectively.

So, you will get your weekly wage by taking 4.3 and dividing it into your salary.

Say you earn R 1000, the calculation to determine your weekly wage will look like this:


1000/4.3 = R 232.56