The Redundancy Confirmation Letter is a crucial document in South African employment law that formalizes the outcome of a retrenchment process. It is used following the completion of the consultation process required under Section 189 or 189A of the Labour Relations Act. The letter must be issued after proper consultation with affected employees and/or their representatives, and should only be prepared once all alternatives to retrenchment have been considered. The document serves multiple purposes: it confirms the redundancy decision, specifies the last working day, details the severance package and other entitlements, and outlines any support services available to the affected employee. The letter must carefully balance legal compliance with sensitivity to the affected employee's situation, ensuring all statutory requirements are met while maintaining professional communication.
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1. Letter Date and Address Block: Formal letter heading including date, employee's name and address
2. Subject Line: Clear indication that this is a Redundancy Confirmation Letter
3. Formal Confirmation: Clear statement confirming the redundancy decision and the effective date
4. Background and Reasons: Brief explanation of the business circumstances leading to the redundancy
5. Consultation Reference: Summary of the consultation process that has taken place
6. Notice Period: Confirmation of notice period and last working day
7. Financial Entitlements: Overview of redundancy package, including severance pay, notice pay, and other entitlements
8. Leave Details: Confirmation of outstanding leave balances and payment
9. Company Property: Instructions regarding return of company property
10. Final Documentation: Reference to tax documents and certificate of service
11. Support Available: Details of any outplacement or counseling support provided
12. Closing and Signatures: Formal closing, including contact details for queries and signature blocks
1. Alternative Position Offer: Include when an alternative position within the company is being offered
2. Special Arrangements: Details of any special arrangements agreed during consultation (e.g., extended notice period, retention bonus)
3. Reference Provision: Include when the company has agreed to provide references
4. Non-Compete Reminder: Include if employee is bound by existing non-compete clauses that continue post-employment
5. Medical Aid Extension: Include if there are specific arrangements for extending medical aid coverage
6. Share Options/Long-term Incentives: Include if employee has share options or other long-term incentives that need addressing
1. Schedule A - Payment Calculation: Detailed breakdown of all payments including severance pay, notice pay, leave pay, and other entitlements
2. Schedule B - Benefits Summary: Detailed information about the treatment of benefits, insurance, and pension
3. Schedule C - Handover Checklist: List of items to be returned and tasks to be completed before last working day
4. Appendix 1 - Support Services: Details of outplacement services, counseling, and other support available
5. Appendix 2 - Important Contacts: List of relevant contact persons for HR, benefits, and other queries
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