Calculate your severance pay entitlement under the BCEA. Includes notice period pay and leave payout for a complete retrenchment package breakdown.
Calculates severance pay using the statutory minimum of 1 week per completed year of service
Includes notice period pay and outstanding leave payout in your total retrenchment package
Understand the Section 189 retrenchment process and your CCMA referral options
Calculate your retrenchment package
Enter your salary and years of service to see results
Understanding the Section 189 retrenchment process and your legal protections
Your employer must issue a Section 189 notice and consult with you (or your union/workplace forum) about the proposed retrenchment. The consultation must cover the reasons, alternatives to retrenchment, selection criteria, severance pay, and timing.
The Labour Relations Act (LRA) requires that selection for retrenchment must be fair and objective. Common criteria include LIFO (Last In, First Out), skills, qualifications, and performance. The criteria must not discriminate unfairly.
Under Section 41 of the BCEA, you are entitled to a minimum of 1 week's remuneration for each completed year of continuous service. Your contract or collective agreement may provide more. This is a statutory minimum that cannot be waived.
If you believe the retrenchment was procedurally or substantively unfair, you can refer the dispute to the CCMA within 30 days of dismissal. For severance pay disputes specifically, you have 12 months. The CCMA process is free and you do not need legal representation.
Important contacts:
CCMA: 011 377 6600 or visit ccma.org.za
Department of Employment and Labour: 012 309 4000
Legal Aid South Africa: 0800 110 110 (free legal assistance for qualifying employees)
Common questions about retrenchment and severance pay in South Africa
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Accounter does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.