Voluntary Retrenchment Agreement

In the first phase of a savings process, it is acceptable for an employer to propose a softened austerity plan to workers who might otherwise be chosen by the employer to choose to be one of the workers selected to leave first. This is done in advance that the employer makes the real and difficult choice of the remaining workers. This is part of the reduction process and this first stage of resignation does not lead to a resignation that would constitute a voluntary act of termination of service. This is the first phase of the austerity process and is seen as a reduction. Voluntary cuts are an alternative to forced reductions. Voluntary dismissal means that a staff member voluntarily accepts or withdraws and therefore waives any rights that he/she must refer to an external forum at the end of his or her benefits. The employer, on the other hand, offers the worker additional payments or benefits, which is legally due to the worker. Q. We have secured a “voluntary reduction agreement” for those of us who would prefer to use the proposed austerity package if we sign such a letter. I would like to know if it is still possible to get unemployment if we sign. Considering the questions that employers and workers raise about reductions, it seems clear that there is a misunderstanding of workers` rights within the meaning of section 189 / 189 A of the Labour Relations Act and the Basic Law on Working Conditions. Some employers feel that firing a worker is as simple as dismissal on the basis of company requirements. Another common mistake is to selectively designate collaborators as “problem” for reduction, rather than using a fair selection criterion, such as the LRA`s recommended last in first out (lifo) principle.

There is no “voluntary” aspect of the reduction, and this phase should not be used because it is not useful when considering the tax treatment of severance pay and pension fund benefits, says Jenny Gordon, Director of Alexander Forbes Retail Legal. If this is a reduction as defined above, MISA may consult you and perhaps protect you if the criteria are not applied fairly or objectively or if there is no reasonable and fair reason to withdraw. – a value agreed either in an employment contract or in a collective agreement, provided that the agreed value is not less than the cost to the employer of the payment of benefits in kind; one way to mitigate the effects of a reduction, even remotely, is to work with employers to open “voluntary reductions” to their workers. At least it gives you a little control, a choice in this very stressful and uns requested for the situation or process. – (an employer who makes housing or other benefits in kind available to workers is recommended to enter into a written agreement with the worker on the value of housing or other benefits in kind). When the employee makes an agreement with his employer on the reluctance not to ask for undue dismissal and not to demand additional remuneration, in exchange for payment of a savings plan including severance pay, leave, other remuneration and additional benefits. An agreement on the acceptance of the voluntary savings offer will come into force. If a worker is entitled to an amount in the event of dismissal or dismissal: which refers to the period that the employer is required to notify the employee of such a termination of service, that is, the employer pays the worker an amount equal to the wages that the worker would have earned if that worker had worked during the full notice, the amount (dismissal wage) is not eligible for the exemption provided in paragraphs 7A (4A) or 10 (1) x of the Income Tax Act.