Telkom details voluntary separation packages in an email to staff

Telkom has sent an email to staff detailing the particulars of its voluntary separation packages (VSP) and voluntary early retirement packages (VERP).

In the email, seen by MyBroadband, the company stated packages will be available to all employees of Telkom SA SOC Ltd.

The details follow Telkom announcing on Thursday that it would offer the packages to employees from this week.

“We estimate that Telkom has subsidised the South African mobile industry by about R70 billion since its inception. This subsidy has mainly been a result of regulatory decisions that impacted Telkom disproportionately,” stated the email.

“During these regulatory cycles Telkom has sought to safeguard jobs from market and economic pressures. However, the cumulative effect of past regulations continues to impact our business operations.”

Telkom stated it must therefore offer voluntary packages to all Telkom – Corporate, Openserve, Consumer and Small Business – employees, as part of a review of its business operating model.

“VSP and VERP packages will be available from Friday, 14 September 2018 at 12:00 until Friday, 21 September 2018 at 12:00,” said the email.

Packages

The mail stated that the VSP option is available to all Telkom employees who are:

  • Younger than 50 years if they are members of the Telkom Retirement Fund.
  • Younger than 55 if they are members of the Telkom Pension Fund.

The VERP option is available to Telkom employees who are:

  • 50 years and older if they are members of the Telkom Retirement Fund.
  • 55 years and older if they are members of the Telkom Pension Fund.

“Employees are under no obligation to apply for a VSP/VERP. The decision to apply for a VSP/VERP is at the sole discretion of each individual employee and it remains the employee’s responsibility to fully understand the implications of the package,” said Telkom.

“No employee should be encouraged nor coerced under any circumstances to exercise a certain option.”

Following the application process, employees will be notified of the outcome on 2 October, with a scheduled exit date of 31 October.

Telkom added that the voluntary separation offers are taxable.


Read: Voluntary separation packages at Telkom

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