The Redundancy Letter Due To Business Closure is a crucial document used when a company in South Africa is ceasing operations and needs to terminate employment relationships. It must comply with the Labour Relations Act 66 of 1995, particularly Section 189 regarding retrenchments, and other relevant employment legislation. The document should be used when a business has made the definitive decision to close and needs to communicate this to employees formally. It must include specific details about the closure, notice periods, severance pay calculations, final payments, and other statutory requirements under South African law. The letter serves multiple purposes: it provides formal notice, outlines employee rights and entitlements, details the support available during the transition, and helps ensure legal compliance in the business closure process. This document is particularly important as it may be scrutinized by labor courts if the fairness of the process is challenged.
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1. Date and Address Block: Current date and full contact details of both the employer and employee
2. Subject Line: Clear indication that this is a notice of redundancy due to business closure
3. Business Closure Context: Explanation of the circumstances leading to the business closure and why this results in redundancy
4. Notice of Termination: Formal notice of employment termination, including the effective date and notice period
5. Final Payment Details: Breakdown of final salary, notice pay, and statutory severance pay
6. Leave Balance: Information about accumulated leave pay and how it will be handled
7. Return of Company Property: List of company property to be returned and process for doing so
8. Certificate of Service: Confirmation that a certificate of service will be provided
9. UIF Registration: Information about UIF benefits and confirmation that necessary documentation will be provided
10. Closing and Signature: Professional closing, contact information for queries, and signature block
1. Reference Letter Offer: Optional offer to provide a reference letter, typically included for employees in good standing
2. Outplacement Support: Details of any career transition support services being offered, if applicable
3. Medical Aid Extension: Information about extending medical aid benefits, if applicable
4. Retirement Fund Details: Information about pension/provident fund options, if applicable
5. Employee Assistance Program: Details of any counseling or support services available during the transition
6. Skills Development Opportunities: Information about any training or upskilling opportunities being offered before closure
7. Long Service Recognition: Special recognition or additional benefits for long-serving employees
1. Schedule A: Severance Calculation: Detailed breakdown of severance pay calculation based on years of service
2. Schedule B: Final Payment Breakdown: Itemized list of all final payments including salary, leave pay, and other benefits
3. Schedule C: Company Property Checklist: Comprehensive list of company property to be returned
4. Appendix 1: UIF Forms: Copies of relevant UIF registration forms and instructions
5. Appendix 2: FAQ Document: Common questions and answers about the redundancy process and employee rights
6. Appendix 3: Important Contacts: List of relevant contact persons for HR, payroll, and other queries
7. Appendix 4: Timeline: Key dates and deadlines related to the closure and redundancy process
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Transport and Logistics
Media and Entertainment
Real Estate
Energy
Relevant Teams
Human Resources
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Executive Leadership
Industrial Relations
Compliance
Operations
Administration
Finance
Employee Relations
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HR Manager
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