South Africa Outlines Rules on When Employers Must Pay Severance to Workers

• South African law sets out clear conditions under which dismissed employees are entitled to severance pay from their employers
• The amount an employee can receive depends on how many completed years of continuous service they have with the employer
• Employees who turn down a reasonable offer of alternative work risk losing their right to severance pay entirely

South Africa's Labour Relations Act lays out specific conditions governing when employers are required to pay severance to workers dismissed on the grounds of operational requirements, which include economic, technological, structural, or similar business-driven needs.

The law applies where job losses stem from legitimate organisational pressures rather than employee misconduct, giving affected workers a defined set of rights and protections.

How severance pay is calculated

Under the Act, dismissed employees are entitled to a minimum of one week's remuneration for every completed year of continuous service with the same employer. The calculation method is prescribed under section 35 of the relevant legislation, meaning a worker with a decade of service would qualify for at least ten weeks' pay based on their current earnings.

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The Minister of Labour retains authority to revise this minimum threshold by publishing a notice in the Government Gazette, though any such adjustment must follow consultation with both NEDLAC and the Public Service Co-ordinating Bargaining Council, which was established under Schedule 1 of the Labour Relations Act of 1995.

Importantly, severance pay does not replace other amounts owed to the worker. Entitlements such as outstanding leave pay or notice pay remain entirely separate obligations, and employers are still legally required to settle these independently.

When workers can lose severance entitlement

The law also identifies circumstances under which a dismissed employee may forfeit their severance pay. Where an employer offers an alternative position, either within the same organisation or with another employer, a worker who unreasonably declines that offer loses their entitlement.

The use of the word "unreasonably" carries particular legal weight. Not every refusal will disqualify a worker from receiving severance. Whether a refusal qualifies as unreasonable is assessed on a case-by-case basis, taking into account the nature of the alternative role, how it compares to the employee's former position in terms of duties and remuneration, and the broader circumstances of the offer.

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This distinction means employees retain some degree of protection against being pressured into accepting vastly different or inferior roles simply to avoid forfeiting their severance benefit.

South Africa lists 12 African countries denied visa exemptions

Earlier, YEN.com.gh reported that citizens of 12 African countries are required to obtain an approved visa before entering South Africa.

The countries are Nigeria, Kenya, Egypt, Ethiopia, Uganda, Cameroon, Sudan, Somalia, Algeria, Libya, Morocco, and the Democratic Republic of the Congo.

Source: YEN.com.gh