19/05/2020
REDUNDANCY AND THE PROCEDURE
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Redundancy is the loss of employment, occupation, job or career by involuntary means through no fault of an employee, involving termination of employment at the initiative of the employer, where the services of an employee are no longer required and the practices commonly known as abolition of office, job or occupation and loss of employment.
PROCEDURE
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1. If the employee is a member of a union, the employer must notify the union and the local labour officer of the reasons and the extent of the redundancy at least one month before the date when the redundancy is to take effect;
2. If the employee is not a member of the union, the employer must notify the employee personally in writing together with the labour officer;
3. Seniority in time, skill, ability and reliability of the employees should be considered;
4. Where the terminal benefits payable upon redundancy are set under a collective agreement, the employer shall not place an employee at a disadvantage on account of the employee being or not being a member of a trade union;
5. The employer must pay the employee any leave due in cash;
6. The employer must pay the employee at least one month’s notice or one month’s wages in lieu of notice; and
7. The employer must pay the employee severance pay at the rate of not less than 15 days for each completed year of service.
8. There must be consultation between the employer and the union or the employees.
NOTE: Termination of employment on account of redundancy that does not adhere to the outlined procedure will be unlawful.