HomeHome SearchSearch MenuMenu Our productsOur products

Termination pay: Here's what you need to know

by , 31 August 2015
Understanding termination pay and knowing when to pay it can be confusing.

So read this quick guide and understand the basics behind termination pay:


649 New cases are referred to the CCMA every day. Only 72% of the cases are settled...

What happens to the rest?
Did you know a full 38% if all cases end up at arbitration, the Labour Court or in strikes or lock-outs? That's a massive 247 cases that leave employers, just like you, battling it out with an employee.
Don't lose your case because of a technicality... Be armed with the one tool that will give you the winning solution to fighting your case at the CCMA.
Click here to get your hands on the one tool no employer should be without...
What is termination pay?

Termination pay is the payment that is legally due to your employee when he[TS1]  leaves you.

When do you have to pay termination pay?

You are required to pay termination pay in the following instances:

·         He resigns, retires or passes away;
·         You retrench him;
·         He deserts you;
·         You dismiss him for misconduct, poor performance or because of illness or disability or incompatibility; or
·         He leaves by agreement with you.

Are there any additional payments that you need to make alongside termination pay?

You will be required to pay him the following in addition to the termination pay he is entitled to:

·         Salary, wages, overtime pay or commission that is due to him for any work done;
·         Any annual leave due to him;
·         Payment to your employee for his pension or provident fund; and
·         Payment for any money that he 'saved up' with you.

So there you have it! But to learn more behind termination pay, click below…


Protect yourself from labour-related problems by using this practical tool

The comprehensive Labour Law for Managers Loose Leaf Service gives you all the details you need for maximum protection in labour-

related problems. You will find, for example:

·         Information on the problem areas managers have to handle in the workplace daily, and appropriate solutions;
·         Valuable advice for employers, based on the ever-changing legislation;
·         Sample contracts, dismissals and warning letters, etc;
·         Numerous practical checklists; and
·         Much more…

Read more to make sure you're protected from labour issues…

Related articles

Related articles

Watch And Learn

Related Products


Recommended for You 

  Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance

Here are all the most interesting, thought-provoking and common tax questions
asked by our subscribers over the last tax year – everything from A to Z!

To download Quick Tax Solutions for Busy Taxpayers – 35 tax answers at a glance click here now >>>
  Employees always sick? How to stop it today

Make sure you develop a leave policy to regulate sick leave in your company.

BONUS! You'll find an example of the leave policy and procedure in this report.

To download Employees always sick? How to stop it today click here now >>>
  Absenteeism: Little known ways to reduce absenteeism

This FREE e-report will tell you how you can reduce absenteeism in your workplace while avoiding the CCMA and without infringing your employees' labour rights.

To download Absenteeism: Little known ways to reduce absenteeism click here now >>>
  7 Health & safety strategies to save you thousands

Don't let a health and safety incident cost you one more cent. Implement these seven
strategies in your company today.

To download 7 Health & safety strategies to save you thousands click here now >>>