Do i need to pay se…
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Do i need to pay severance ?

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Do i need to pay severance to an employee if im downsizing and if so what does the law say on this ?

1 Answer

Once there are valid reasons to consider retrenchment, there are very important steps to follow according to the Retrenchment and Severance Benefits Act. 

If no alternative jobs are offered or available, a severance payment in keeping with the stipulations of the act must be paid. If however, reasonable attempts have been made to offer similar, alternative employment and the employee refuses, then the company is not obligated to pay a severance. 

For more specific guidance if you are considering conducting a retrenchment or redundancy exercise, please contact our HR Support Services.