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In today’s reality, retrenchment of employees is unavoidable. For those employees considering the tax implication of their severance packages, take note. There is a once off R30 000 tax exemption on your severance package. However, if you take advantage of it now you will not be able to do so again regardless of whether you are again retrenched, terminate your employment due to ill health or disability or retire.

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Legal Notice: The information contained herein is provided for general information purposes only. It does not constitute legal advice. Whilst we take reasonable steps to ensure the accuracy and integrity of information contained herein, we accept no liability or responsibility whatsoever if any information is, for whatever reason, incorrect or corrupted. We further accept no responsibility for any loss or damage that may arise from reliance on information contained herein.