Retrenchment

[modern10]

Hi Guys

Hopefully you can help me out. I've got a friend who's a manager at an audit firm. Her position is permanent but she has only been there for 7 months. The firm seems to be struggling and now they are busy retrenching people. They offered her a months salary as compensation if she ceases working from the end of this month.

She's not happy at all and demanded at least 3 months salary as the retrenchment has nothing to do with her performance. Does she have a leg to stand on? Is she within her rights to demand 3 months compensation?

Thank you in advance

 

[Noob-Noob]

Hi Guys

Hopefully you can help me out. I've got a friend who's a manager at an audit firm. Her position is permanent but she has only been there for 7 months. The firm seems to be struggling and now they are busy retrenching people. They offered her a months salary as compensation if she ceases working from the end of this month.

She's not happy at all and demanded at least 3 months salary as the retrenchment has nothing to do with her performance. Does she have a leg to stand on? Is she within her rights to demand 3 months compensation?

Thank you in advance

Think its 2 weeks for every year worked.

 

[Venomous]

Think its 2 weeks for every year worked.

1week for every year worked. And any leave pay due.

IE as it stands they can give her a month's notice to send her packing.
During that month she is entitled to go to interviews and can tell them she is going to one...

 

[modern10]

Damn it, that doesn't buy her much time to find another job. Thanks guys any advice is appreciated

 

[Fudzy]

1week for every year worked. And any leave pay due.

IE as it stands they can give her a month's notice to send her packing.
During that month she is entitled to go to interviews and can tell them she is going to one...

Correct : http://www.labour.gov.za/legislation/acts/basic-guides/basic-guide-to-severance-pay

Employers must pay severance pay to retrenched workers. The pay must be equal to at least 1 week’s pay for each completed year of continuous service.
In addition to severance pay, workers are entitled to any other amounts that they are legally entitled to.

So she's entitled to about 60% of one week's pay. I would take the full month and run, if the company is going down rather get out before it's liquidated and retrenchment options are still on the table.

 

[web]

Correct : http://www.labour.gov.za/legislation/acts/basic-guides/basic-guide-to-severance-pay



So she's entitled to about 60% of one week's pay. I would take the full month and run, if the company is going down rather get out before it's liquidated and retrenchment options are still on the table.

She isn't entitled to 60% as it is only 1 week for every completed year, with the emphasis on competed.

 

[Budza]

So she's entitled to about 60% of one week's pay. I would take the full month and run, if the company is going down rather get out before it's liquidated and retrenchment options are still on the table.

Get out as in accept retrenchment?

IE, don't resign. Don't want to lose any unemployment benefits it the new job isn't around the corner...

 

[Devill]

Hi Guys

Hopefully you can help me out. I've got a friend who's a manager at an audit firm. Her position is permanent but she has only been there for 7 months. The firm seems to be struggling and now they are busy retrenching people. They offered her a months salary as compensation if she ceases working from the end of this month.

She's not happy at all and demanded at least 3 months salary as the retrenchment has nothing to do with her performance. Does she have a leg to stand on? Is she within her rights to demand 3 months compensation?

Thank you in advance

IMO she should take the 1 month extra pay and go.

Edit: And as mentioned above, do not resign as you would lose some benefits.

 

[Cius]

I would not voluntarily resign. Make them give legal notice etc as that takes a lot longer and costs more. If that is the case they might sweaten the deal and offer 3months pay for her to leave and that she should take!

 

[modern10]

Yes, she also reckons that being employed gives you a bit of bargaining power when your looking for a job or negotiating a salary with a prospective employer.

 

[ElementZero]

Hi Guys

Hopefully you can help me out. I've got a friend who's a manager at an audit firm. Her position is permanent but she has only been there for 7 months. The firm seems to be struggling and now they are busy retrenching people. They offered her a months salary as compensation if she ceases working from the end of this month.

She's not happy at all and demanded at least 3 months salary as the retrenchment has nothing to do with her performance. Does she have a leg to stand on? Is she within her rights to demand 3 months compensation?

Thank you in advance

I;ve been through this last year , legally they don't have to pay her anything as she is there for less than a year. They need to give her her notice period and pay her for it. so if its one calender months notice and they only starting the procedure now i would say she must hang on cause they have to pay her for next month and the month after

 

[modern10]

I;ve been through this last year , legally they don't have to pay her anything as she is there for less than a year. They need to give her her notice period and pay her for it. so if its one calender months notice and they only starting the procedure now i would say she must hang on cause they have to pay her for next month and the month after

Thanks @ElementZero, I think your right. At this point I think she should wait untill next month to accept the offer which would buy her an extra month

 

[brixton tower]

That seems like a bum deal. One week's salary for every year worked...surely that can't be right.

I would not work for a small company, especially since you have no protection when it comes to things like retrenchment.

 

[HavocXphere]

Well peak season in the audit world ended like last week, so chances of this going through is pretty damn certain.

I guess it depends on what they mean with 'ceases to work'.