If the new employer decides to retrench employees, severance pay will be calculated on the basis of service with the old and new employer to determine the years of service.
The more senior the employee, the larger the investment he or she has made in the employer and the greater the entitlement to termination and severance pay.
An employee of the old employer who refuses adequate alternative employment with the new employer when faced with retrenchment by the old employer is not entitled to severance pay.
The three charged executives, who had stayed on as consultants, were fired without severance pay, and the company said it would pursue legal action against them.