Severance pay basics
After a lawful retrenchment, employees are generally entitled to severance pay of at least one week's remuneration for each completed year of continuous service, unless a more favourable collective agreement applies.
Notice pay, leave pay, and outstanding wages are separate entitlements that must also be settled on termination.
When severance is disputed
- Employer claims retrenchment was voluntary or a resignation - Incorrect calculation of "week's remuneration" - Delayed or partial payment after termination - Disputes over whether a genuine Section 189 process occurred
Enforcement steps
- Send a written demand setting out amounts owed and payment deadline (often 7–10 business days).
- Attach payslips, termination letter, and retrenchment agreement.
- Lodge a dispute at the **CCMA** or Department of Employment and Labour where appropriate.
- Consider the **BCEA** complaint route for wage-related breaches.
FairPlay AI can help quantify what you are owed and generate a formal demand letter (PDF tier).