Compensation to workers in case of closing down of undertakings: entitlement, three month cap, mining and construction exceptions. Workers with at least one year's continuous service before closure are entitled to notice and retrenchment compensation, but compensation is capped at three months' average pay where closure is due to unavoidable circumstances; financial difficulties, unsold stock, lease expiry, or exhaustion of minerals in mining are not treated as unavoidable. Mining closures due to exhaustion displace entitlement if the employer provides alternative employment within 20 kilometres at the same pay and terms with uninterrupted continuous service and legal liability for future retrenchment compensation. Construction undertakings completed within two years displace compensation; otherwise compensation accrues for each completed year or any part over six months.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Compensation to workers in case of closing down of undertakings: entitlement, three month cap, mining and construction exceptions.
Workers with at least one year's continuous service before closure are entitled to notice and retrenchment compensation, but compensation is capped at three months' average pay where closure is due to unavoidable circumstances; financial difficulties, unsold stock, lease expiry, or exhaustion of minerals in mining are not treated as unavoidable. Mining closures due to exhaustion displace entitlement if the employer provides alternative employment within 20 kilometres at the same pay and terms with uninterrupted continuous service and legal liability for future retrenchment compensation. Construction undertakings completed within two years displace compensation; otherwise compensation accrues for each completed year or any part over six months.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.