– a value agreed either in a contract of employment or in a collective agreement, provided that the agreed value is not less than the costs incurred by the employer for the provision of benefits in kind; or, in the event of dismissal or reduction, a worker is entitled to an amount corresponding to the period during which the employer is required to inform the worker of such separation from service, i.e. that the employer pays the worker an amount equal to the wage that the worker would have earned if that worker had worked during full notice, the amount (termination indemnity) cannot benefit from the exemption within the meaning of Article 7A(4A) or Article 10(1)(x) of the Income Tax Act. A severance pay agreement is a contract between an employer and an employee that contains rules and guidelines relating to the dismissal of a worker. A model termination contract should contain details, for example. B how much salary the employee is entitled to after dismissal, when benefits are suspended, etc. We employ more than 50 people and plan to lay off at least 10 people due to company requirements. Workers likely to be affected by the reduction, or their company forum, registered trade unions or elected officials or any person elected under a collective agreement. Severance pay agreements are sometimes written in the form of letters to employees. This is sometimes referred to as a termination letter and contains all the details you would find in the standard indemnification agreement. In Hodges v Urban Task Force Investments CC and Others (JR840/12) [2013] ZALCHB 295 (7). However, the Labour Court ruled that a worker could not waive his rights to fair dismissal in exchange for payments legally due to the worker. Therefore, a voluntary reduction agreement is only valid and enforceable if, in addition to the one to which it is legally entitled, a «sweetener» in the form of an amount or benefits is paid or granted to the worker.

This severance pay, which comes into force [date], consists of [name of worker] and [name of employer]. What is considered a fair trial for the cuts? Voluntary cuts are an alternative to forced cuts. A voluntary reduction means that an employee is accepted or terminated voluntarily and therefore waives any right for which he/she has the right to refer an unjustified dismissal dispute to an external forum after the termination of his/her services. In return, the employer offers the worker additional payments or benefits compared to what is legally due to the worker. . . .