TERMINATION OF EMPLOYMENT PROCEDURE

Transcription

1 TERMINATION OF EMPLOYMENT PROCEDURE 1. Introduction Seda like all organisations periodically loses its employees due to a variety of reasons. As termination of contracts of employment is an integral part of employment relations, it is essential to have a policy that will enable a smooth termination process as well as comply with the legislative framework which deals with this matter. Some of the reasons that may lead to termination are as follows: Resignation; Death; Retirement; Dismissal; Desertion (abscondment); End of contract; Retrenchment; Any other reason recognised by law. 2. Purpose of the Policy The purpose of the policy is to: facilitate an orderly exit of employees from Seda employment 2.2. define the rights and obligations of both the employee and Seda when parties wish to terminate their relationship safeguard the property of Seda and 2.4. comply with relevant legislation. 3. Scope of application This policy applies to all Seda employees. 4. General Principles Seda and the employee have the right to terminate the contract of employment. However, it is acknowledged that the right of Seda to terminate an employee s contract is limited by the requirements of fair dismissal procedure as contained in the Labour Relations Act. Therefore, these requirements will always be kept in mind when this policy is applied. 5. Legislative Requirements The following legislative requirements are applicable to this process but not limited to: The Basic Conditions of Employment Act 75 of 1997 The Labour Relations Act 66 of Definitions Collective Agreement : means a written agreement concerning terms and conditions of employment or any other matter of mutual interest concluded by Seda and a registered trade union. Day: Month: means a working day. means a calendar month. Termination Procedure 1

2 Remuneration: means any payment in money or in kind, made or due to an employee in return for that employee services for seda. 7. Policy Stipulations 7.1. When an employee resigns from Seda, it is important for the employment relationship to be terminated in a positive and professional manner Management should be genuinely concerned, interested and caring towards the individual, thereby enhancing the employee s perception of Seda as an employer An exit interview will be held with all employees who give their consent to participate in the process. 8. Procedure 8.1 A contract of employment is terminable at the instance of either Seda or the employee only on notice of not less than: One week, if the employee has been employed for six months or less; Two weeks, if the employee has been employed for more than six months but not more than one year; and One month, if the employee has been employed for one year or more. 8.2 Notice of termination of a contract of employment must be submitted in writing to the line manager. 8.3 A notice of termination of a contract of employment given by Seda shall not be given during any period of leave to which the employee is entitled, or run concurrently with any period of leave to which the employee is entitled, except sick leave (in line with the approved leave policy). 8.4 Seda may terminate the services of an employee without pay in cases of misconduct, or for any reason recognised by law. 8.5 Employees will be allowed to indicate to HR, any manager and above they would prefer to be interviewed by during the exit interview. 9 Payment instead of notice 9.2 Instead of giving an employee notice in terms of clause 8.1, Seda may pay the employee the remuneration that the employee would have received if the employee could have worked during the notice period. 9.3 Payments on termination On termination of employment, Seda will pay the employee leave credits which will be equivalent to the remuneration that the employee would have received whilst working, subject to the maximum of 25 days (in line with the approved leave policy) The calculation of the leave pay will be at the rate of the employee s current remuneration package Deductions will be made from the employee s remuneration payout of outstanding debts to Seda as per the signed acknowledgment of debt form.. Termination Procedure 2

3 9.4 Exit Process The departure of employees from Seda will be accompanied by certain administrative procedures. The organisation would need to recover property that was used by the employee and outstanding debts. The following are the administrative process to be followed: EXIT INTERVIEW Exit interviews provide the means of terminating the employment relationship in a positive and professional manner. a) Objective To establish from the employee the reasons for the resignation. To gather information that can be used meaningfully. b) Responsible persons The Human Resources Manager is responsible for ensuring that the interview takes place as well as the quality of the exit interview. Although the Human Resources Manager may delegate the task, he/she retains accountability. The interviewee must be given the opportunity to state that he/she is in agreement with the interviewer chosen. The interviewer must be: o Sensitive to the emotional nature of the interview o Able to use the correct probing question technique o Familiar with the interviewees work area The exit interview information must be entered onto VIZUAL personnel Manager and filed on the employee s personal file. c) Guidelines for the exit interview Genuine care, concern and interest in the individual must be shown. The exit interview must be well structure and take place in an atmosphere of mutual trust and understanding. There should be privacy and no interruptions. Remember that the employee may have resigned because of some dissatisfaction with Seda or an individual and might be reluctant to discuss this, for fear of not obtaining good references for his/her new or future job/s. Consequently, the interviewer must exercise skill in obtaining the true reason for resignation. Every effort must be made to make sure the exit interview is as open as possible, with easy flowing probing questions techniques and answers that can be put together in report form at a later stage. At the conclusion of the interview, the interviewer can suggest that the individual may wish to communicate additional information at a later stage. The interviewee may be more willing to do this, as he/she will then be an exemployee and no longer fears a poor reference because of information divulged. d) Use of information collected Information collected will be used: By the Human Resources Department to profile the vacancy accurately To correct problems and make improvements relating to the working environment To improve human resource practices. Once the employee has left, a copy of the exit interview will be given to the individual s line manager and Executive Officer, if appropriate. Termination Procedure 3

4 The exit interview form can be obtained from the Human Resources Division. 10 ABSCONDMENT If an employee is absent without notifying the organization, an effort must be made to contact him/her. Whatever the reason for the absence, or if the employee fails to make contact after a reasonable period, a disciplinary hearing can be convened. If the employee does not appear at the hearing, the hearing may proceed in his/her absence, provided the employee has been notified of his/her right to attend the hearing. Depending on the circumstances, dismissal may result. If there is a dismissal, the employee will be terminated as of the last working day. 11 ADMINISTRATION This procedure should only commence on receipt of letter of resignation from the employee. Upon receipt of accepted resignation letter, the affected manager, all relevant stakeholders will be informed by HR. The termination checklist should be handed to all permanent employees upon resignation. The Human Resources Department must ensure that all documentation relating to employee benefits are completed by the employee. The termination checklist requests the employee to return all company property to the relevant department. EMPLOYEE TERMINATION CHECKLIST Small Enterprise Development Agency Month Ending: Details of Employees Employee Name Employee Number Department/Province Branch Date of termination HR Department Date termination report forwarded IT Date termination report forwarded to Finance HR Department Signature Termination Procedure 4

5 IT Department Date terminated employee IT access removed User accounts removed Outlook Abillity ABSA VIP (Tick or N/A) IT hardware returned (if applicable) Yes No No Hardware IT Department Signature Support Services Department Date termination report received from HR All necessary documentation completed Admin / Accounts Department Signature Finance Department Date completed termination document received Outstanding Loans, Advances and Relocation costs. Loan 1 Loan 2 Advance Canteen Other (Amount) Finance Department Signature HR Department Date completed termination document received HR Department Signature Termination Procedure 5