LRA Section 41
Min 1 week per year
R
Your normal monthly remuneration before deductions.
Only completed years count for minimum severance under s41 LRA.
Statutory notice based on length of service. Notice pay is in addition to severance.
Retrenchment usually lets you claim from the UIF. Choose No if you do not contribute.
Weekly Salary
R 0.00
Completed Years of Service
0 years
Minimum Severance Pay
1 week per completed year R 0.00
1 week per completed year R 0.00
Notice Pay
R 0.00
Total Minimum Package
R 0.00
UIF
Eligible to claim UIF benefits
How Retrenchment Works in South Africa
How retrenchment severance works in South Africa
Under Labour Relations Act (LRA) Section 41, if you are retrenched for operational requirements, your employer must pay you a minimum of one week's remuneration for every completed year of continuous service.
Severance Pay = Completed Years of Service × (Monthly Salary × 12 ÷ 52)
Key things to know:
- This is the legal minimum — many employers offer more as part of a negotiated package.
- Operational requirement (Section 189) retrenchments qualify. Misconduct or poor performance dismissals do not.
- If you have less than one completed year of service, no minimum severance applies — but you are still entitled to notice pay.
- Notice pay is calculated separately and is in addition to severance.
- The total package may be partially tax-exempt under retirement lump sum tax tables — consult a tax professional for your specific situation.
Your retrenchment package may also include: pro-rata bonus, leave payout, and any unpaid salary owed to you.
UIF after retrenchment: Retrenchment is a qualifying event for UIF benefits. You can claim for up to 238 days, subject to your UIF contribution history. Apply at your nearest Labour Centre or online via the Department of Employment and Labour as soon as possible after your last day — delays can affect your claim period.