Please help with regards to retrenchments. I am not too sure if my calculations are correct. Here's what I included: Notice Pay
Severance Pay- 1 wk for each completed year of service right? If employee worked less than a year this should be company discretion right?
Then there's this point in the consultation letter
"Severance package issues – 1 week per yr. completed service; Accrued leave; no need to work notice; no taxation if less than R10,000, tax directive if more than R 10,000"
Do I choose not to tax the employee or is this done when the tax returns are filed? I don't wanna take a chance and not pay the tax and then later be hit with penalties. Please advice on how I should treat the tax issue?
One more thing, what is the acceptable(reasonable) time-frame between giving notice and the actual retrenchment? I have a bad feeling about being faced with the CCMA. We only gave the employees notice Mid November, and their termination date is 15 January.
Did you like this article? Share it with your favourite social network.