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Amended Basic Conditions of Employment Act
40. Payments on termination
as amended by the
Basic Conditions of Employment Amendment Act, 2002, Contract Cleaning Wage increase, and Domestic workers wage increase 1 Dec 2007
Chapter 5 : Termination of employment
40. Payments on termination
On termination of employment, an employer must pay an employee—
(a) for any paid time off that the employee is entitled to in terms of section 10(3) or 16(3) that the employee has not taken;
(b) remuneration calculated in accordance with section 21(1) for any period of annual leave due in terms of section 20(2) that the employee has not taken; and
(c) if the employee has been in employment longer than four months, in respect of the employee’s annual leave entitlement during an incomplete annual leave cycle as defined in section 20(1)—
(i) one day’s remuneration in respect of every 17 days on which the employee worked or was entitled to be paid; or
(ii) remuneration calculated on any basis that is at least as favourable to the employee as that calculated in terms of subparagraph (i).
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