The sectoral determination provides that a domestic worker who unreasonably refuses to accept an alternative offer of employment is not entitled to severance pay. This, in turn, has three possible consequences[i]

• where the domestic worker accepts alternative employment (no severance is payable);
• where the employee unreasonably refuses to accept alternative employment (no severance is payable);
• where the employee reasonably refuses to accept alternative employment (severance is payable).

Consequently, where alternative employment has been found for the domestic worker and he/she accepts that employment, then no severance pay is due. Other amounts should however be paid including outstanding leave.

Conversely, where a domestic worker refuses alternative employment, in order to determine whether severance must be paid regard must be had to what constitutes an ‘unreasonable’ refusal to accept such employment. The following factors should be considered

• a reduction in working hours and/or a reduction in wages;
• a reduction in benefits (i.e. no medical aid or pension fund);
• increased travel time or costs;
• additional duties (i.e. caring for children / cooking);
• any other disadvantage that may result as a consequence of accepting the alternative employment.

Where there are significant disadvantages if the domestic worker accepts alternative employment, he/she is entitled not to accept the offer and instead to claim severance.

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[i]See Irvin & Johnson Ltd v Commission for Conciliation, Mediation & Arbitration & others (2008) 29 ILJ 1113 (LAC)