The Retrenchment and Severance Act 1985 Chap 88:13, s 18, makes provision for severance benefits to be paid to employees, where the employer terminates the contract through reason of redundancy. Collective bargaining agreements, however, may advocate for more favourable terms.
For those employees who are entitled to severance benefits, they can expect the following compensation to be paid:
Employees pay cycle | Employees with 1–4 years of service | Employees with 5+ years of service (compensation due from 5th year of service onwards) |
Hourly, daily, weekly, and fortnightly | Two weeks basic pay for each year |
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Web page updated on 17 Mar 2025 15:26