Mutual Separation Agreement And Unemployment Benefits South Africa

December 13, 2020

If the employer wishes to enter into a separation contract with an employee, it is recommended that a two-tier approach be adopted. On the one hand, the employer would initiate proceedings, as required by our LRA for misconduct (either by issuing a notification of participation in a disciplinary hearing or by the letter of a letter outlining the allegations). On the other hand, the employer would separately enter into separation negotiations with the employee. Typically, a person who is removed from the disciplinary process, for example. B a chief of staff or other manager, would have this discussion with the employee. In these cases, it is up to the state to decide who initiated the separation and to decide whether unemployment benefits should be granted. As we mentioned in our previous blog, the state plays the role of an impartial third party and determines who will receive unemployment benefits and who will not receive it. When the employer has dismissed the employee, the state must check whether the cause of the dismissal is due to bad behaviour during the employment. If bad behaviour during employment is not the cause, the plaintiff is generally compensated. On the back, the state must determine whether the applicant had a valid reason when a former employee is the one who initiated the dismissal. If no reason is found, the state cannot grant unemployment benefits. Based on this information, Reckitt Benckiser negotiated a compensation package including a $40,000 registration bonus, housing assistance and an extended work permit. The employee started in July 2013 as regional human resources director of Reckitt Benckiser.

However, when Reckitt Benckiser found in early 2014 that the employee was not employed by Unilever at the time of his representation, he was summoned for a disciplinary hearing and dismissed because of his substantial distraction. The employee then asked for a “softer exit” and Reckitt Benckiser agreed. The worker entered into a separation agreement with Reckitt Benckiser in order to fully and definitively oppose any claims that the parties might have against each other. In the agreement, the worker acknowledged and accepted that the termination of his employment relationship was without undue coercion or influence and that he had voluntarily and unconditionally waived his right to apply to the CCMA and any other jurisdiction for discharge. If the worker accepts a separation package, the parties may agree that the amount of the payment will be calculated in the same way as the compensation of an austerity plan within the meaning of Section 41 of the Basic Law on Conditions of Employment (BCEA). This means that the calculation can be based on the number of years of service the employee in the company. This does not mean that the worker was removed under Section 189 of the Labour Relations Act (LRA).

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