Voluntary Retrenchment Agreement Template South Africa

Q. We have secured a “voluntary reduction agreement” for those of us who would prefer to use the proposed austerity package if we sign such a letter. I would like to know if it is still possible to get unemployment if we sign. A. Yes, budget cuts are not the fault of layoffs. It is not the employee`s fault that the company can no longer afford the employee`s salary and the agreed notice periods as such must be respected. The employer may ask the worker not to return to the workplace, but then the employer must pay the notice. A. Yes, as long as the worker can prove that the employer initiated the voluntary offer.

What is considered a fair trial for discounts? Voluntary cuts are an alternative to forced reductions. Voluntary dismissal means that a staff member voluntarily accepts or withdraws and therefore waives any rights that he/she must refer to an external forum at the end of his or her benefits. The employer, on the other hand, offers the worker additional payments or benefits, which is legally due to the worker. Before adopting a voluntary savings plan, it should be noted that we employ more than 50 people and plan to lay off at least 10 people based on the company`s requirements. Workers who may be affected by the reduction or their work forum, registered union or elected representatives, or anyone elected under a collective agreement. A voluntary savings agreement is mandatory and enforceable if both parties freely and voluntarily enter into the contract. In the case of Gbenga-Oluwatoye/Reckitt Benckiser South Africa (Pty) Limited and Another (2016) 37 ILJ 2723 (CC), the Constitutional Court that a clause in a voluntary separation package in which the parties waive their right to apply to the Mediation, Mediation and Arbitration Commission (CCMA) or the Labour Tribunal with respect to all disputes arising from the employment relationship is valid, despite Section 34 of the Constitution which grants every person the right to access justice. The reason is that the parties voluntarily agreed to finalize a case in this way.