How does retrenchment work in Namibia?
Severance pay – a retrenched employee must at least be paid 1 week’s pay for each completed year of ongoing service. However, the employer must pay the retrenched employee the amount specified in any policy or his/her employment contract, if that amount is larger.
How is retrenchment package calculated Namibia?
Accordingly, you would divide your yearly salary by 52 to get the weekly pay rate. Then, multiply this pay rate by the number of weeks. If you earn N$390,000 a year, then you make N$7500 a week. If you worked for the company for 10 years, then you would get N$75,000 in severance.
How long does the retrenchment process take?
Normally on average such a process takes between two and three weeks. We employee more than 50 employees and contemplate dismissing at least 10 employees based on the company’s operational requirements. In such instances the employer will have to follow the steps outlined in section 189A of the Labour Relations Act.
What are the requirements for retrenchment?
Retrenchment can be availed of if: (1) the losses incurred are substantial and not de minimis; (2) the losses are actual or reasonably imminent; (3) the retrenchment is reasonably necessary and is likely to be effective in preventing the expected losses; and (4) the alleged losses, if already incurred, or the expected …
Can you refuse retrenchment?
Of course, you can refuse retrenchment, which means the consultations have deadlocked. If you are the only person being retrenched, you can refer the dispute either to arbitration or to the Labour Court, irrespective of whether the retrenchment procedure complied with section 189.
How does the retrenchment process work?
The retrenchment procedure as laid down in the Labour Relations Act (LRA) must be followed properly and in good faith by the employer. The employer must also prove that he/she has shared with the targeted employees (or their representatives) all documentary and other information pertinent to the retrenchment.
Can you get retrenched during lockdown?
During the national lockdown, section 189 of the Labour Relations Act 66 of 1995 will continue to govern the procedures that must be followed for a fair and lawful retrenchment. Retrenchment is a form of dismissal due to no fault of the employee.
How much is a retrenchment package?
(2) An employer must pay an employee who is dismissed for reasons based on the employer’s operational requirements severance pay equal to at least one week’s remuneration for each completed year of continuous service with that employer, calculated in accordance with section 35.
How do you calculate retrenchment pay?
According to Katinka Beeslaar, who is the Legal Advisor at The People Business – Human Resources Consulting cc, the company must pay an employee who is to be dismissed severance pay equal to one week’s salary for every completed year of continuous service with the company.
What are the benefits of being retrenched?
When you are retrenched, your employer may pay you a lump sum for the termination of your services, and this lump sum may qualify as a severance benefit. From 1 March 2011, special tax rates applicable to severance benefits were implemented, where the first R315,000 of the severance benefit was not subject to tax.
How is retrenchment pay calculated?
Separation Pay Computation: Termination due to Redundancy or Installment of Labor-Saving Devices. You’ll get a separation pay equal to your monthly basic pay or your monthly basic pay multiplied by the number of years you’ve served the company, whichever is higher.
What is unfair retrenchment?
Thus, ensuring that they comply with the Labour Relations Act and the rights of their employees. However, if an employer doesn’t provide the proper reasons and doesn’t follow the proper procedures, the CCMA or Labour Court can consider the retrenchment unfair.
Will any retrenchment take place?
actual retrenchment, if any, will take place. stay. insufficient. unless absolute unavoidable. or to receive any other payment which is due to the employee. remuneration for every completed year of employment.
Can a company retrench people under the Labour Act?
Labour Act. Any business decision to retrench people would be unfair. followed. about intended retrenchments. dismissals is not sufficient anymore. meant by “relevant information” or “effectively engagements”. High Court. minimise the retrenchments.
Can a company have retrenchments as a consequence?
and it might have retrenchments as a consequence. actual retrenchment, if any, will take place. stay. insufficient. unless absolute unavoidable. or to receive any other payment which is due to the employee.