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Retrenchment package — calculation and letter
The legal minimum under SI 191 of 2024, what else is owed and a letter asking your employer for the figures in writing
Your details
Details
Employee [YOUR NAME]
Position [YOUR POSITION]
Employer [EMPLOYER'S NAME]
First day of employment [FIRST DAY OF EMPLOYMENT]
Retrenchment takes effect [DATE THE RETRENCHMENT TAKES EFFECT]
Monthly salary or wages US$ [MONTHLY SALARY]
The calculation
Line Amount
Years of service [YEARS OF SERVICE]
Minimum retrenchment package (salary × years) US$ [PACKAGE AMOUNT]
Notice pay ([MONTHS] months × salary) US$ [AMOUNT]
Cash for leave days not taken US$ [AMOUNT]
Other money owed US$ [AMOUNT]
Total to expect (before tax) US$ [TOTAL]
If the employer says it cannot pay, it must still pay at least 25% of the package — US$ [AMOUNT] — and apply for exemption for the rest (s. 12C(9)).
Steps and dates
Step What it means for you Section
Notice of intention to retrench At least 14 days' written notice to the works council or employment council, the Retrenchment Board and the employees s. 12C(3)(a)
Employer tells the Retrenchment Board No later than 14 days after you are retrenched, with the package being paid s. 12C(5)
If the employer did not notify the Board The full package vests in you on the 21st day after the retrenchment s. 12C(5), proviso (i)
Employer says it can't pay It must still pay at least 25% of the package and apply for exemption for the rest s. 12C(9)
You think it can pay more Within 60 days of the Board's notification certificate, apply in writing for an enhanced package s. 12C(13)
Package not paid Affidavit to the Retrenchment Board → non-compliance certificate → Labour Court s. 12C(6), (7)
Letter to your employer
[TODAY'S DATE]
The Human Resources Manager
[EMPLOYER'S NAME]
[TOWN]
Dear Sir or Madam,
RE: MY RETRENCHMENT PACKAGE — [YOUR NAME], [YOUR POSITION]
I refer to the notice of retrenchment I received. I have been employed by the company since [FIRST DAY OF EMPLOYMENT], and the retrenchment takes effect on [DATE THE RETRENCHMENT TAKES EFFECT].
Under section 5 of the Labour (Retrenchment) Regulations, 2024 (SI 191 of 2024), unless better terms are agreed, the minimum retrenchment package is one month's salary or wages for every year of service, and a proportion of a month's salary for part of a year. On my monthly salary of US$ [MONTHLY SALARY] and [YEARS OF SERVICE] years of service, I calculate the minimum package at US$ [PACKAGE AMOUNT].
Please let me have, in writing:
the calculation of my retrenchment package, showing the salary and the period of service used;
the notice pay, the cash for leave days not taken and any other money owed up to my last day;
the date or dates on which each amount will be paid;
a copy of the notice given to the Retrenchment Board under section 12C of the Labour Act [Chapter 28:01].
I reserve my right to negotiate better terms, together with my colleagues or our representatives, and to approach the Retrenchment Board if the package is not paid on time.
Yours faithfully,
[YOUR NAME]
Employee number: [EMPLOYEE NUMBER] · Phone: [PHONE]
Labour (Retrenchment) Regulations, 2024 (SI 191 of 2024), s. 5; Labour Act [Chapter 28:01], s. 12(4), 12(7) and s. 12C as substituted by the Labour Amendment Act, 2023. The old rule of one month for every two years of service no longer applies. Amounts before tax; a calculation and a template, not legal advice.