Severance Allowance

Navigating the End of Employment Relationship

TERMINATION OF EMPLOYMENT

  • It is a payment made to the employee,
  • it can only be ordered by a Court.
  • If a worker has been in employment for 12 months or more, Severance Allowance amounts to the total of 3 months’ remuneration per year of service.
  • The employer may deduct from the amount of Severance Allowance any gratuity paid to the worker or contributions made under the Portable Retirement Gratuity Fund.

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