Andrew
Online Reporter
Impending amendments to the Labour Act are likely to result in changes in the way retrenchment packages are calculated, if the proposed additional clauses in the Bill are adopted.
The Labour Act Amendment Bill was in its second reading in Parliament last week following public consultations done by the Committee on Public Service, Labour and Social Welfare.
Presenting the findings from the outreach programmes, chairperson of the committee, Ms Emma Ncube, said there were calls for a re-look into the computation of retrenchment pay-outs.
“Members of the public registered their concern at the amendment’s failure to review the minimum retrenchment package, which currently stands at one months’ wages for every two years served in terms of the Labour Amendment Act of 2015,” she said.
Under the current law, a person who worked for a company for 10 years will get five months worth of pay as their retrenchment package, which members of the public said was too little.
“In this regard, a proposal was made to make the retrenchment package three months’ pay for each year of completed service.
“Further suggestions from the public were to the effect that the 60-day period slated as the timeline for the payment of the retrenchment package be reduced to 30 days bearing in mind the volatility of the current economic environment.”
Online Reporter