Compensation To Employees – Calculations

Based on the Employment Act, the minimum benefit for compensation
due to retrenchment can be referred to the ternimation benefit scale:

a) Less than 2 years service, 10 days wages for every year employed
b) 2 to 5 years service, 15 days wages for every year employed
c) More than 5 years service, 20 days wages for every year employed.

If the employment contract does not state the termination notice period, then according to the Employment Act for those employed more than 5 years of service, eight weeks notice or 8 weeks in lieu of notice must be given

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