Is mutual separation the same as retrenchment?

Is mutual separation the same as retrenchment?

However, where there is a mutually agreed separation this, by definition, involves an agreement outside of the LRA. A section 189 retrenchment is concluded by a unilateral letter from the employer giving the employees notice of termination of employment.

What does mutual separation mean?

It just means they have both formally agreed to the conditions of the separation. In these instances, the State must decide who initiated the separation and determine if unemployment benefits should be awarded. If no good cause is found, then the State may not grant unemployment benefits.

Can an employer and employee sign a mutual separation agreement?

An employer and employee can agree to enter into a mutual separation agreement to end the employment relationship. And the best of all is, a mutual separation agreement is not classified as a dismissal in terms of the Labour Relations Act and is broadly an acceptable practice by the CCMA and the Labour Court.

How to explain mutual separation in job interview?

A lot of employers only share an employee’s dates of employment and job title, but it doesn’t hurt to ask. If you’ve signed a separation agreement, those terms may also be included in the agreement. If there’s still time, you could also ensure that those terms are added to the agreement. 2.

Can a separation agreement be used for unemployment?

If no good cause is found, then the State may not grant unemployment benefits. When a separation agreement is carried out, it will outline terms of the separation and will usually have the employee sign an agreement waiving the right to sue the employer for wrongful termination.

What should be included in a mutual separation agreement?

A mutual separation agreement must be in writing, signed by both parties and witnessed. It is important to ensure that at least the following is provided for in the agreement: That the terms and conditions is fully understood by the employee and that it was properly explained to him;