Payments on termination – what do I owe my employees?
Whenever an employment relationship comes to an end, the Employee is entitled tocertain statutory payments. These include payment for any paid time off that theEmployee is entitled to in terms of overtime and/or Sunday hours worked and nottaken.
In addition, the Employee is entitled to his/her annual leave due and owing. The Employee’s annual leave entitlement will be calculated according to the contractual agreement and in the absence of said agreement, according to Section 20 and 21 of the Basic Conditions of Employment Act 75 of 1997. Section 20 (1) states that an Employee is entitled to one day’s annual leave for every seventeen days worked, or the remuneration calculated on any basis that is at least as favourable as the aforementioned.
These payments are seen as statutory entitlements and should be paid over to the Employee, regardless of the reason for termination.
To arrange a consultation, for more information, with a member of our qualified team, contact Erin Steyn on 021 919 6418 or email erin@joblaw.co.za
