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QUESTION a. Read the following scenario and answer the questions that follow: Severance Benefit Calculations In terms of Employment (Miscellaneous Provisions) regulation 3, severance benefit shall be the rate of one day's basic pay in respect of each of the first sixty months of continuous employment, and two day's basic pay in respect of each of additional month of continuous employment. Severance benefit to be paid to an employee who attained sixty months of continuous employment or any period less will be one day in each month completed (number of months x daily rate). Any additional period thereafter (60+ months) attracts two day's wages for each month completed (number of months x 2x daily rate).
Based on the information above calculate severance benefit for the following employees: i. John was appointed on temporary basis for three (3) months working 21 days a month and earning a salary of P15000.00 per annum. What is John's severance benefit at the end of the three (3) months of employment
i. Mary worked for BOCODOL for six (6) years and two (2) months as a Cleaner. She worked 22 days a month. Calculate her severance pay when she retired earning P928 per month (10 marks) iii. Sam is still in employment of Plascon earning a daily wage of P50. He has been working for the company for the past 120 months and is due to be paid his second severance benefit. Calculate severance due to be paid to Sam
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