RE: UPDATED ANSWERS TO QUESTIONS IN LINE WITH THE SECTION 189A PROCESS OF THE LABOUR RELATIONS ACT

1. We refer to the ongoing consultations between the parties as well as the invitation by the Company for Employees to put forward their questions.
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2. We confirm that we have become aware of ‘new dealers’ who are apparently involved in taking over stores under Telkom’s new business model approaching staff members with job offers in this ‘new model’ which has given rise to some confusion. This letter serves to address this confusion.

3. Essentially, as far as entitlement to severance pay is concerned, Perx confirms that three outcomes are foreseen for the affected employees, namely:

3.1 If you have been approached by one of the new dealers and you choose to accept the job offer, then and in that event the natural course of action will be for you to resign your employ from Perx giving the required one (1) months’ notice before taking up employment with the new dealer.

3.2 The second scenario foreseen is that either an employee is not offered an alternative position and/or successful in securing alternative employment and such an employee stands to be retrenched.

3.3 The third scenario is that Perx is successful in securing alternative suitable employment for a staff member. The procedure may be that Perx arranges an interview which leads to your engagement with a new employer.

4. In each instance that suitable alternative employment happens (scenario 1 & 3 above), no severance pay is to be paid as continued/ a continuation of employment is secured.

5. In all other instances where individuals are retrenched and continuation of
employment has not taken place; these individuals stand to be retrenched and on retrenchment paid severance pay.

6. Other than that contained herein pertaining to the ‘new dealer/s’, Perx has no additional information not being privy thereto.

7. Should you have any queries or concerns please reach out to your manager.