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'I've summarily dismissed my employee. Is he entitled to notice pay?'

by , 28 August 2014
Our labour experts get a lot of questions from confused employers.

One of the questions they received this week comes from Anneli, a small business owner in Jo'burg. She says she's summarily dismissed one of her employees and wants to know if this particular employee is entitled to notice pay.

Keep reading to find out the answer to this question so you can handle summary dismissals correctly.

An employee you've summarily dismissed is NOT entitled to notice pay 

That's right.

When you dismiss an employee summarily, she doesn't get notice pay. Her dismissal takes place immediately following a disciplinary enquiry.

If, for example, your employee had a right to company accommodation as part of her remuneration package, she'll lose her entitlement to this accommodation when you summarily dismiss her.

BUT, your employee doesn't leave completely empty handed.

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She's entitled to the following upon summary dismissal:

  • Salary, wages or commission due to her for the time she's worked for you;
  • Payment for accrued leave. An exception to this may be when your employee absconds.
  • Pension benefits or a return of her contributions to the pension fund subject to the rules of the fund.
  • Relevant tax documents, including her IRP5, a certificate of service as required by the Basic Conditions of Employment Act (BCEA) and any documents necessary to claim her unemployment benefits from the Unemployment Insurance Fund (UIF).
There you have it. If you've summarily dismissed your employee, you don't have to give her notice pay.

For more information on summary dismissal, check out the Labour Law for Managers Loose Leaf Service. And if you have any labour questions, just like Anneli, ask our direct your questions to our experts at the Labour & HR Club.

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