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How do you work out severance pay?

Writer Joseph Russell

It is correct that severance pay is calculated at one week’s remuneration for each completed year of continuous service. This is in terms of s 41(2) of the Basic Conditions of Employment Act 75 of 1997 (BCEA). Therefore, receiving one week’s pay as your severance package for one year of service, is correct.

Can union workers get laid off?

When you begin the process of forming a union you become protected by the much stronger Alberta Labour Code – the law that protects union members in Alberta. You cannot be fired for joining a union.

How much can a severance package be?

The severance pay offered is typically one to two weeks for every year worked, but can be more. If the job loss will create an economic hardship, discuss this with your (former) employer. The general practice is to try to get four weeks of severance pay for each year worked.

Why do companies give severance?

Some employers choose to offer severance pay to employees who are terminated, either involuntarily or voluntarily. The primary reasons for offering a severance package are to soften the blow of an involuntary termination and to avoid future lawsuits by having the employee sign a release in exchange for the severance.

When is an employee entitled to severance pay?

40 “Every employee whose term of employment with an employer and his predecessors has in aggregate exceeded one year is entitled to severance pay upon termination of employment by employer for reasons of redundancy.

How do trade unions work to improve working conditions?

Unions work on the principle that if all workers speak with the same voice, their concerns are more likely to be addressed. This involves union members in the same workplace getting together to talk about common problems, democratically taking collective decisions on workplace issues, and putting these views to the employer.

Can a trade union agreement be changed by an employer?

However, an agreement can be changed, irrespective of how longstanding it is. Even where an employer terminates an agreement, the statutory default position can be more favourable, giving trade unions an incentive to negotiate and an opportunity for a genuine ‘win win’.

When to get involved in a trade union dispute?

When considering the agreement, it must be clear what issues the trade union can and should get involved in for a business to run effectively. Organisations are usually reluctant to go to dispute for obvious reasons, but parties have an interest in change to bring new, better ways of working.