Redundancy: one of the clearest routes to severance

Redundancy is among the circumstances where severance pay applies in Botswana — subject always to the pension rule.

When severance applies

Severance is usually applicable in cases of redundancy, retirement, or termination for reasons other than serious misconduct.

The common thread is that the ending was not caused by your own serious misconduct.

The pension qualification

But it applies only if you are not registered with the social insurance system and not receiving a pension or gratuity.

That qualification cuts across everything else, so establish it first.

The calculation

Where severance does apply:

• One day's basic pay per completed month for the first 60 months
• Two days' basic pay per completed month thereafter

Some contracts do better

The severance formula for redundancy is sometimes expressed in contracts as one week's pay per year of service, and some contracts provide more generous terms still.

Check what your contract says. The statutory formula is a floor.

What else is due

Notice or pay in lieu, accrued leave, final salary and any outstanding bonuses or commissions — all separate from severance.

Procedure

Even though no specific reason is required for termination generally, a fair process is expected where dismissal is not for serious misconduct: notice of any charges and an opportunity to respond.

In a genuine redundancy there may be no charges, but there should be clarity about the reason and a properly documented settlement.

Questions to ask

1. Am I on a pension or gratuity arrangement?
2. What start date is being used, and in months?
3. Was the two-day rate applied beyond 60 months?
4. Does my contract set better terms?
5. Is leave being paid separately from severance?

Where to go

The Ministry of Employment, Labour Productivity and Skills Development.