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Basic Guide to Termination (Wholesale and Retail)

by admin — last modified 2014-04-01 17:48
Certain procedures must be followed when either an employer or worker wishes to terminate employment.

Application

Sectoral Determination 9 applies to all employers and workers in the wholesale and retail sector, including those associated with-
  • merchandising,
  • warehousing, or
  • distribution operations.
The determination does not apply to workers who are covered by-
  • another sectoral determination, or
  • a bargaining council agreement.

The Basic Conditions of Employment Act applies in respect of any matter not covered by this sectoral determination.

See

Notice of Termination

Notice must be given in writing, except when it is given to an illiterate worker.

Notice Period

Worker employed for…

Notice Period

6 months or less

1 week

6 months to 1 year

2 weeks

More than 1 year

4 weeks

Notice of termination may not be given during any period of leave entitled to a worker, except sick leave.

Pay Instead of Notice

Employers may decide to waive the notice period, but the worker must still be paid for the notice period.

Payment on Termination

On termination of employment the employer must pay a worker all monies due to the worker -
  • wages
  • allowance or other payments
  • paid time off

Severance Pay

Retrenched workers (dismissed due to employer’s operational requirements or insolvency) are entitled to 1 week’s severance pay for every year of service.
Workers who unreasonably refuse to accept alternative employment with their employer or another is not entitled to severance pay.

Certificate of Service

On termination of employment, workers are entitled to a certificate of service
The certificate if service must state -
  • worker’s full name
  • name and address of the employer
  • date of commencement and termination of employment
  • title of job and brief description of work
  • any relevant training received
  • pay received at termination
  • reason for termination (if requested by the worker)

Unfair Dismissal

Workers who feel they have been unfairly dismissed should contact the CCMA.

Based on Legislation in Section 37, of the Basic Conditions of Employment Act


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