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If an employee is retrenched after 29 years of excellence in…

If an employee is...

If an employee is retrenched after 29 years of excellence in several leadership roles , according to his work contract if he had joined the company before 1994 January would his medical health insurance fall away or should the individual be compensated up to the age of 65

Lawyer's Assistant: Was this discussed with a manager or HR? Or with a lawyer?

Discussed with HR and they responded by saying that the remuneration package included a gratuity sum for just 5 years.The emoloyee had just turned 55

Lawyer's Assistant: Is the workplace "at will" or union? Is the job hourly or salaried?

This is a corporate multinational. The employee was a salaried employee

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

The employee was promoted 6 months prior to retrenchment and upon his retrenchment his position was filled within a month of his departure.

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Customer reply replied 3 months ago
It has been just on 10 years that this retrenchment was effected.The employee is now 66 years old and funding his own Medical Cover Approximately R3,600 pm. Prior to retrenchment the company paid 55% of his contribution towards Medical Cover.
Customer reply replied 3 months ago
See clause 13 of the employment contract on pdf file sent
Customer reply replied 3 months ago
This is the work contract highlighting the Medical AID ISSUE Clause 13
Answered in 11 hours by:
4/16/2018
Freddie Lombard
Freddie Lombard, Attorney
Category: South Africa Law
Satisfied Customers: 2,813
Experience: Practicing attorney and conveyancer with 16 years post article experience.
Verified

Hi I'm Freddie,

Welcome to Just Answer. Thank you for your question. I am reviewing it now and will post a reply here ASAP.

Regards

Ask Your Own South Africa Law Question

What do you mean "it has been just on 10 years that this retrenchment was effected"?

Was the employee retrenched 10 years ago?

Regards

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Customer reply replied 3 months ago
in March 2007

Thank you,

In that case the answer to your question will be a purely academic one, since any claim that the employee may have had would have become extinguished by prescription in March 2010.

In terms of the agreement (employment contract) employees have to pay for their own medical aid when they retire or their contracts are terminated. Unless the employment started prior to 1994 - in which case certain exclusions apply (upon retirement - nothing is said about retrenchment). Details of the policy regarding the medical aid contributions post retirement can be obtained from the employee resources division.

I do not know what those policies entail.

From what you have written however, the employer has the employee with more than what the contract requires in that they gave an additional 5 years gratuity upon retrenchment while the contract only provides for exceptions upon retirement.

I hope this answered your question.

I know it will take an extra minute of your time to rate my service, but if you do not rate it, I do not get paid by the website so I would really appreciate it if you would be so kind as to rate my service positively. Feel free to ask further questions here on this topic at no extra cost if you need more information.

Regards

Freddie Lombard
Freddie Lombard, Attorney
Category: South Africa Law
Satisfied Customers: 2,813
Experience: Practicing attorney and conveyancer with 16 years post article experience.
Verified
Freddie Lombard and 87 other South Africa Law Specialists are ready to help you
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Customer reply replied 3 months ago
if i understand this correctly the employee has no recourse to challenge this beyond 2010 ??

Correct.

Thank you so much for the positive rating. I hope I can be of assistance to you again in the future.

You may request me personally.

http://www.justanswer.com/law/expert-fwlombard1/

Regards

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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

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