Details about legal rights to final pay after resignation in South Africa

Unseen circumstance may cause you to resign at your present place of work, such as relocation, getting a new job, harsh working conditions, among other.

But before you tender your quitting letter, it is essential to be empowered with information, primarily regarding the final pay after resignation South Africa.

A resignation is valid if one gives their employer an official notice. How long after I resign should I be paid?

Payment should be made within seven working days after the last day of work, but it is also important to issue a notification according to the legal rules on minimum notice period to avoid delay payment after resignation.

What every South African employee and boss should know

  1. After submitting your notice, it is essential for the company to issue an acceptance letter of this notification. Depending on the terms and conditions of the employment contract, they can either terminate the contract instantly or after notice period is over. The company should issue a certificate of service after you resign.
  2. The company is not mandated to give a notice pay, if an employee fails to issue a notice. If the notification is delivered late, the company can choose to pay the amount that is left in the contract. They may also cancel the contract and sue for damages. The employer can also hold the employee until the appropriate warning period is over.
  3. If the employer has issued the notification, the employee is not entitled to take leave from work. However, if the employee has issued their warning, they can go on their annual leave from work. Usually, employers do not grant leave to avoid interrupting the workflow. According to the 1997 Basic Conditions of Employment Act, BCEA sick leave is allowed during the notification period.
  4. BCEA also stipulates that if the employer waives the notification period, they must pay the employee unless both parties agree otherwise. Written agreements should be provided to mitigate any disputes in the future.
  5. BCEA leave is allowed for employees who may have sensitive company information, but the employer wishes for them not to report to work for fear of them disclosing this information. This is called garden leave, and it is paid.
  6. An employee is entitled to termination pay after resigning. The labour law resignation payouts requirements vary depending on the terms and conditions of employment. Knowing how to calculate leave pay on resignation is essential. Typically, the amount is calculated based on the remuneration package the employee ordinarily receives, and not the basic salary only. Unless you are in breach of the employment contract, the boss should not withhold your reimbursement.
  7. A confidentiality agreement should be signed between the employer and employee to bar the employee from disclosing confidential information about their soon-to-be previous employer.
  8. When you resign, the company should ascertain that you return all the company’s properties.

The minimum notice period for resignation

The notice period South Africa varies based on how long the employee has been serving. The rules are stipulated as follows in the BCEA notice period document, Section 37:

  • One week notification for employees who have been employed for six months or less.
  • Two weeks if you have been serving for more than six months, but less than 12 months.
  • Four weeks if you have been employed for more than 12 months.

Points to note

  • According to the South African labour law resignation notice period rules, the employer and employee may change these terms. A 4-week notice period must not be reduced to less than two weeks.
  • The notice period South Africa cannot be extended beyond the stated limits, and all notices are issued through a letter of resignation South Africa.
  • The notice period for resignation without contract should be reasonable. A resignation without contract should also follow the above legal laws.
  • You cannot revoke your resignation after tendering the letter.

Leave pay on termination of employment

Section 37 of the BCEA states that an employer should not give notice to an employee if they are on their sick, maternity, or annual leave. The employee may issue their notice while on leave, but the notice period may only start from the day the employee resumes work. AS guided by Section 20 of the Act, an employer can either prohibit or allow the employee to take leave during the notice period.

Do I get paid my annual leave when I resign?

The employer has to compensate the employee for any unpaid yearly leave days that they are entitled to after the notice period expires. The employee should know their rights and the number of days they have to work. Having these details allows them to secure optimal protection as guided by the BCEA.

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