Telkom retrenchment packages revealed

Telkom has unveiled its voluntary severance packages and voluntary early retirement packages, which form part of the company’s staff reduction strategy.

Telkom is planning to cut 4,400 jobs through voluntary severance packages or voluntary early retirement packages. A further 3,400 employees will be transferred to outsourced companies.

MyBroadband has now received information from Telkom employees that the functionality to accept voluntary severance packages has been made available to them.

Telkom’s voluntary severance package and voluntary early retirement package offers to staff are as follows:

  • Severance pay – 2 weeks’ pay for each year’s service for the first 10 years, and 1 weeks’ pay for all additional years’ work.
  • Notice pay of up to 6 months’ salary, depending on when the employee accepts the offer.
  • Medical aid is dependent on scheme – different options are available.
  • Leave pay will be based on leave days available until exit date.
  • Long service award will be paid to employees who qualify up to their exit date.
  • Contractual obligations, like study loans, bursaries, and telephone debt will be written off.
  • Forfeitable shares due to the employee in terms of the share scheme will be vested in the employee’s name.
  • Social Plan – an amount of R40,000 will be made available to the employee, either in cash (taxable) or as payment for training purposes.

Telkom was asked for comment regarding the voluntary severance packages and voluntary early retirement packages, but the company did not provide further details by the time of publication.

Source: MyBroadband

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Telkom retrenchment packages revealed