How To Calculate Severance Pay In Namibia

How To Calculate Severance Pay In Namibia

What is Severance Pay?

A severance package is pay and benefits that employees may be entitled to receive when they leave employment at a company unwillfully.

How To Calculate Severance Pay In Namibia

Severance pay must be in an amount equal to at least one week’s remuneration for each year of continuous service with the employer. The payment of severance pay does not affect an employee’s right to any other amount that the employee is obliged to pay the employee.

Accordingly, you would divide your yearly salary by 52 to get the weekly pay rate. Then, multiply this pay rate by the number of weeks. If you earn N$390,000 a year, then you make N$7500 a week. If you worked for the company for 10 years, then you would get N$75,000 in severance.

Frequently Asked Questions

Why do you get severance pay?

Some employers choose to offer severance pay to employees who are terminated, either involuntarily or voluntarily. The primary reasons for offering a severance package are to soften the blow of an involuntary termination and to avoid future lawsuits by having the employee sign a release in exchange for the severance.

How does severance pay work in Namibia?

Your Rights Severance. If you’ve been terminated or permanently laid off from a long term job your employer may offer you severance pay, also called a separation package. Severance pay can include a lump sum payment, a period of continued paychecks, continuation of benefits or other forms of payment.

Should I accept severance package in Namibia?

In most cases, employers are not required to provide employees with severance packages. Severance agreements are contracts between private parties and are governed by California contract law. There is no law in California requiring employers to offer severance packages

Do you get severance when fired in Namibia?

Generally speaking, employees who are fired are not offered a severance package—particularly when they are fired for misconduct. But, if you’re fired, you may not be entitled to receive unemployment benefits. If you are fired “for cause,” the employer does not have to pay you unemployment benefits.

Can you work another job while getting severance pay in Namibia?

You can indeed still accept severance even if you’re about to accept another offer–in fact, even if you’ve already accepted another offer (assuming that there’s nothing in your severance agreement that prohibits that, which there probably won’t be).

Is it better to have severance paid in a lump sum?

Lump sum amounts are great if they best meet your financial needs after job loss. There are tax breaks galore the more an employer transfers directly into your personal RRSP portfolio. Severance agreements are legal documents. They have been prepared on behalf of the employer.

Can a company lay you off without severance in Namibia?

California law generally does not require employers to provide severance pay or severance packages to a worker upon termination of the job

Why would someone not accept a severance package in Namibia?

Reason 1: Confidentiality Clauses and Clawbacks

You plan on exposing your employer and you are extremely agitated. If you accept the confidentiality clause and later breach the provision through disclosure, you risk the company taking back all of the severance pay and getting sued by the company.

How much is a good severance package in Namibia?

The severance pay offered is typically one to two weeks for every year worked, but can be more. If the job loss will create an economic hardship, discuss this with your (former) employer. The general practice is to try to get four weeks of severance pay for each year worked.

How can I avoid paying taxes on severance in Namibia?

An easy way to pay fewer taxes is to have your severance paid out in two separate years. Ask if you can have the payments spread out so you can avoid taking a huge tax hit in one year. For some people, taking a lump sum can mean owing unexpected money on your taxes

Is it better to get laid off or fired?

It’s very important for workers to determine the nature of their termination – between being laid off vs. getting fired. The reason for the fact is that it affects their eligibility to get future jobs. More specifically, workers who get laid off can get jobs more easily compared to those who got fired.

Can a company take back a severance?

Just as your employer typically does not have to offer you any severance, your employer can withdraw an offer if you do not accept it before it is withdrawn. If you ask for more severance, your employer could withdraw the offer and you could end up with nothing or less than the initial offer.

Should I wait for severance or take new job?

I highly recommend accepting the severance agreement immediately. I would also recommend that they immediately start looking for a new job with fervor. There are 3 possible outcomes: 1) They will find a job and need to leave early – forfeiting their severance package.

Can you negotiate severance pay in Namibia?

Although being let go from a job is a stressful experience, you might be able to negotiate the terms of your severance package to suit your needs while finding another employer. When negotiating, perform detailed research and prepare to leverage your history with your employer to get the compensation you deserve.

How much compensation do I get for layoff in Namibia?

At ninety days of employment, the employer must either give one weeks’ notice of termination or pay one weeks’ wages as severance pay. At one year of service, the employee is entitled to two weeks’ notice or pay. Each additional year of service adds an extra week or notice or pay up to a maximum of eight weeks.

Does an employer have to rehire a laid off employee?

Unless there is an existing agreement between the employer and the worker, an employer is not obligated to rehire a laid-off employee

What happens if you dont sign severance in Namibia?

You do not have to sign the severance agreement, and your employer cannot withhold any wages you are owed until you sign it. You can negotiate the terms of the severance agreement and are free to ask your employer to make changes to the severance agreement, including asking for more money.

What happens if you deny a severance package in Namibia?

What Happens When You Refuse a Severance Package? Like any legally binding contract, you can walk away from a severance offer at no detriment to yourself. Although negotiation isn’t always an option, some companies may work on making the severance package more enticing to you.

How long do you have to sign a severance package?

How long do I have to sign a severance agreement? The severance agreement usually tells you how long you have to review and sign it. Most severance agreements give employees at least 21 days to consider the agreement.