Retrenchment is a dismissal
In this instance the dismissal is for operational reasons that may include the financial decline of the business, or the loss of client contracts.
You have the right to fight for your job, and once you are aware of retrenchment, you should immediately speak to your credit providers who may put payment plans into place.
‘It is important at this stage to avoid increasing your debt due to stress purchases or any mismanagement of funds received during the process. Speak to a registered, qualified advisor on how best to utilize whatever funds you may have,’ says Anba ‘Paddy’ Padayachee of A Padayachee & Associates.
Your rights
You are entitled, by law, to severance pay. This should be one weeks pay for every completed year of service.
You should be paid out in full for any annual leave due to you, and your notice pay should be between one week and four weeks (depending on your employment contract, which varies from employer to employer).
You may be eligible for a ‘pro-rata’ annual bonus, depending on your contract, and are also entitled to your pension payout package. However, it is advisable that you not cash this out unless absolutely critical.
The Unemployment Insurance Fund (UIF) is there to assist you in the event of the loss of your job, if you are registered and paid up by your company.
Look to the future
It is important to stay positive during this time and concentrate on the future.
Do this my immediately updating your CV and putting yourself on the market to similar companies and employment agencies.
Concentrate on maintaining a clean credit record during this time by contacting a registered and reputable advisor to assist in the steps needed in order to ensure your creditors are aware of your change in employment status, and steps have been taken to ensure your debt is professionally managed.
‘It is important to remember that the more time you spend out of the work market, the harder it will be to become re-employed,’ advises Padayachee.
‘As hard as it is, try to remember that retrenchment is often beneficial to your future, as you are forced to look at other opportunities, and this could ultimately be good for growing your skill set and enhancing your career path.’
Contact Anba ‘Paddy’ Padayachee HERE mlm1@telkomsa.net
Empangeni 035-7872461
Umhlanga 031-8305282
