Retrenchments

Craig

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For those that know, how is your package worked out?

Lets say you get R10k pm CTC, and R8k out after deductions. At one week per year worked, do you take the CTC or the net amount? And are you taxed on that?

Company sent out notice to retrench this morning and I'm just preparing for the worst case scenario.
 

supersunbird

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While not able to help with the queries, if you have an inkling that your company is in the doldrums (or even if it's not), see if you can get retrenchment insurance, there would be a waiting period (my provider was 6 months waiting period and they do not do retrenchment cover on new sign-ups anymore) and they would only pay take home for a certain period of months,
 

PsYTraNc3

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This may very well be an April fools joke but in case it isn't...

You or the company are able to apply for a tax exemption on your severance package.

I got retrenched last year and the company handled it.
The last months' salary and severance pay (which was based on CTC ) was paid out tax-free.

All companies I know of that offer retrenchment cover would have a waiting period and clause stating that cover cannot be taken out after you've received notice.
 

Craig

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This may very well be an April fools joke but in case it isn't...

You or the company are able to apply for a tax exemption on your severance package.

I got retrenched last year and the company handled it.
The last months' salary and severance pay (which was based on CTC ) was paid out tax-free.

All companies I know of that offer retrenchment cover would have a waiting period and clause stating that cover cannot be taken out after you've received notice.
Yeah, it would be a dick move to take cover out now. It's not an April fool's joke unfortunately as there have been rumours going around for the last month already. 300 employees will have to go, so it's quite a large amount of people.

It won't be to bad if you are right and it's based on CTC, I will remember to ask about the tax free thing if push comes to shove.

I'm in a good position in that out of probably 1000+ employees I'm the only one that can do what I do, so unless they close down my whole department I'm safe. But it's quite possible that my department can be closed down as we are cash flow negative.
 

PsYTraNc3

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That's tough man... good luck and hope you find something new quickly enough if you do end up getting retrenched.

Mine was definitely CTC and everything including leave pay was tax exempt.
 

Craig

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That's tough man... good luck and hope you find something new quickly enough if you do end up getting retrenched.

Mine was definitely CTC and everything including leave pay was tax exempt.
Thanks. My stomach is suddenly turned upside down when I saw the mail and it's still in that position. But I am making plans for the just in case anyway.
 

Iamnotageek

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Thanks. My stomach is suddenly turned upside down when I saw the mail and it's still in that position. But I am making plans for the just in case anyway.
Sorry to hear that my man. It's good to be prepared, but it's also wise not to stress about anything that hasn't happened yet.

You sound like one of those naai's that have a good head on their shoulders. You'll be fine bra. Don't stress.
 

Craig

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Sorry to hear that my man. It's good to be prepared, but it's also wise not to stress about anything that hasn't happened yet.

You sound like one of those naai's that have a good head on their shoulders. You'll be fine bra. Don't stress.
Wife says the same, but I don't do uncertainty. I can do poor, but not uncertainty.

Hell, I've been working for 19 years, all of it for basically 2 companies.
 

Cius

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Good luck. Crappy to have uncertainty. Lots of that going around.
 

RedViking

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My wife works for a small company. She already got last months salary later than usual after being told it might only be this month. So it is basically just taking it month-to-month and not really knowing what is going to happen next..... Lots of people living in uncertain times. Gone are the days where you work 15-20 years or until retirement for a company.
 

Craig

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My wife works for a small company. She already got last months salary later than usual after being told it might only be this month. So it is basically just taking it month-to-month and not really knowing what is going to happen next..... Lots of people living in uncertain times. Gone are the days where you work 15-20 years or until retirement for a company.
That's crap. We also had stories going around that salaries are only guaranteed until March, no idea how much truth was in that. But now my CV has been polished and sent off. I'm holding thumbs. Only realized now how much I do when putting in on paper.
 

RedViking

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That's crap. We also had stories going around that salaries are only guaranteed until March, no idea how much truth was in that. But now my CV has been polished and sent off. I'm holding thumbs. Only realized now how much I do when putting in on paper.
Good you are preparing. Even if your position might seem to be okay for now, it is just a matter of time I guess. Rather start sending out CV now than wait for the last minute. It can take sometimes months before finding another job. Eish!
 

Craig

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Good you are preparing. Even if your position might seem to be okay for now, it is just a matter of time I guess. Rather start sending out CV now than wait for the last minute. It can take sometimes months before finding another job. Eish!
That, and morale here is very low at the moment. The second that email went out you could immediately feel the tension everywhere. So I don't want to be here anymore anyway. Just want out now.
 

Nopt!c

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That, and morale here is very low at the moment. The second that email went out you could immediately feel the tension everywhere. So I don't want to be here anymore anyway. Just want out now.
I first heard the term "restructure" back in my workplace in 2013, they then continued to carry out this exercise in 2014. Lucky I survived, but said goodbye to many of my work colleagues. Not the best way to leave. But hope you get a better opportunity ahead and all of the best old sport! Keep your head up
 

marco79

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I'm not sure if there is a standard rule wrt retrenchment payouts. A good buddy of mine got 2 months notice of retrenchment end of January this year. The company said they would continue paying salaries until end April, and his last day would be end March. So he basically will only get 1 month salary extra after working 8 years at the company.

A few days before payday in Feb they told most of the staff it isn't necessary to come back to the office. 75% of the staff in their office got retrenched.
 

Craig

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I first heard the term "restructure" back in my workplace in 2013, they then continued to carry out this exercise in 2014. Lucky I survived, but said goodbye to many of my work colleagues. Not the best way to leave. But hope you get a better opportunity ahead and all of the best old sport! Keep your head up
Thank you.
 

Craig

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I'm not sure if there is a standard rule wrt retrenchment payouts. A good buddy of mine got 2 months notice of retrenchment end of January this year. The company said they would continue paying salaries until end April, and his last day would be end March. So he basically will only get 1 month salary extra after working 8 years at the company.

A few days before payday in Feb they told most of the staff it isn't necessary to come back to the office. 75% of the staff in their office got retrenched.
They are quite big, already said one week per year worked. I trust this place to keep to their word.
 
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