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Introducing the “In Favour Of” filter in Case Laws.
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of <h1>Compensation to workers on closure of undertakings: entitlement, limits for unavoidable circumstances, mining and construction exceptions.</h1> Where an establishment is closed down, workers with at least one year continuous service are entitled to notice and compensation as if retrenched; however, if closure results from unavoidable circumstances beyond employer control, compensation under clause (b) is capped at three months' average pay. Closures due solely to financial difficulties, stock accumulation, lease expiry or mineral exhaustion are excluded from the unavoidable-circumstances cap. For mining undertakings closed solely due to mineral exhaustion, workers are not entitled to notice or compensation if the employer offers immediate alternative employment within a 20 km radius on same pay and terms, uninterrupted service, and legal liability for continuous-service compensation on any future retrenchment. Construction projects completed within two years attract no compensation, otherwise notice and yearly compensation apply for service beyond six months.
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