Unit 1 – Test Yourself Quiz

When the Fincom realises that it does not have enough money to pay salaries for the rest of the year, Fincom must advise the SGB of the fact.

When the school no longer needs the services of the Dramatic Arts teacher because the school will not longer offer the subject, the principal must inform the teacher and issue a termination letter to him/her.

If the school contract of employment with the employee says that one month’s notice may be given by either party to terminate the contract, it is not necessary to follow the process.

Instead of retrenching an employee it is permissible for the school to offer the employee a different position at the school.

If the school has no money, it does not have to pay the retrenchment pay (severance pay).

The SGB should appoint a committee to conduct the section 189 process.

If an employee’s union representative asks the school to disclose the school’s monthly financial statements, including the cash flow statement, the school is required to produce it.

It is optional for the school to build in an “appeal step” where the SGB reviews the termination decision.

If an employee has been unable to take his/her annual leave days before the retrenchment takes place, the school must pay out for the number of days not taken at the employee’s current daily salary rate.

Retrenchment pay is calculated at one week’s pay for each completed year of service of the employee. It is considered wasteful and fruitless expenditure to pay more than the rate stated in the Labour Relations Act. An employer may not pay more than this rate.