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by Hendrik N.
A pension payout for long service
Our domestic worker of 20 years recently decided to retire. Out of goodwill we paid her a bonus, but she has gone to the Unemployment Insurance Fund Offices (UIF) to complain hat we have not given her a pension payout for long service. Are we liable to pay for this?
Category: Labour and Employment, Dismissals
Region: South Africa, Mpumalanaga
1 Answer
There is no such legal obligation unless if you had a contract to that effect. Each employee contributes to their own pension fund. UIF is for situations where she was retrenched and/or stopped work for some other reasons. Explain the position to the UIF office if they contact you.