Retrenchments and Severance Pay
It is always good, if the employers try to avoid retrenchments and it is always good if an employee considers alternatives that employers propose to avoid retrenchments.
It is however very important that employees consider alternatives proposed before they just decline same.
A reasonable alternative can be seen for example: Employer offers employee a position in another branch 30 kilometre away from current employment, the offer includes all benefits a salary as per it was.
In light of the above should an employee just decide to decline the alternative and indicate he still wants to be retrench, the particular employee will need to be keep in mind that the he/she might lose his entitlement to his/her severance package.
Section 41 (4) of the Basic Conditions of Employment Act states the following:
“An employee who unreasonably refuses to accept the employer’s offer of alternative employment with that employer or any other employer, is not entitled to severance pay in terms of subsection (2)”
In light of the above it is very important to consider alternatives proposed by employers before you just decline.
In a Nutshell: Being employed is always better than being unemployed.
Remember MISA is just a phone call away!