Document background
The Severance Pay Agreement is a crucial document used in South African employment contexts when an employment relationship is terminated due to operational requirements, restructuring, or through mutual agreement. It must comply with South African labor law, particularly the Basic Conditions of Employment Act and Labour Relations Act, which mandate minimum severance pay of one week's remuneration per completed year of service. This agreement typically comes into play during retrenchments, voluntary separation packages, or organizational restructuring, providing comprehensive details about the severance package, payment terms, benefits treatment, and post-employment obligations. The document serves as legal protection for both parties and helps ensure a clear, fair, and compliant separation process.
