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Thread: Retrenchment - Length of Service

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    Retrenchment - Length of Service

    Hi there,

    As a new User I wonder if anyone can help me in regard to the above.

    I am about to be retrenched (Operational Requirements)

    I have 23 years of service with the company which has a mandatory retirement age of 60. On reaching that age, I was offered a one year contract on a straight salary without Pension/Medical Aid.
    This is a normal procedure in the company for staff any reaching the retirement age.

    The contract has been renewed after the first year I am now nearing the end of my second 1 year contract which ends on 31st December 2008.

    I have been advised by our HR/IR that I am only liable for a retrenchment package on the 2 years of service while I was on contract and not on the actual 25 years that I have worked here.

    Is this truly the case ??

    Secondly, I would have accepted a retrenchment package based on 25 years service had it been offered to me but now I feel that I should wait until my letter of dismissal and then go to the CCMA and open a case of Unfair Dismissal based on a reasonable perception that my contract would have been re-newed.

    Can anyone advise on these points ?

    Thanks

    Buddy

  2. #2
    Site Caretaker Dave A's Avatar
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    Would you say your original contract to age 60 ended there? For example, did you get a retirement payout? Are you currently getting payments from the pension fund?
    The trouble with opportunity is it normally comes dressed up as work.

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    Yes I would say it probably did end there.
    I had the accumulated amount from the Defined Benefit fund paid into a Preservation fund. So my last day of employment was on the 31st December, 2006 and the first one year contract started the following day the 1st January, 2007.

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    Site Caretaker Dave A's Avatar
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    Thanks Buddy.

    I hope you see the relevance of the question. If you got all the benefits of service at the retirement point, looking for credit again on those years of service now is essentially double counting.

    That's just my sense of fair play talking.
    The trouble with opportunity is it normally comes dressed up as work.

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