Retrenchment Package in Namibia: What Workers Are Owed
Quick answer: Under Namibia's Labour Act, a retrenched worker with at least 12 months of continuous service must receive severance pay of at least one week's remuneration for every year worked. The employer must also give notice (or pay instead of notice) and pay for leave not taken, outstanding wages and any transport allowance due, and issue a certificate of service.
Key takeaways
Employers planning retrenchments must normally inform the Labour Commissioner and the recognised trade union at least four weeks before the intended dismissals.
Severance pay is at least one week's remuneration for each year of continuous service, but only once a worker has completed 12 months.
A full retrenchment package in Namibia also covers notice or notice pay, accrued and pro rata leave, wages for work done and a certificate of service.
Beefcor Meat Suppliers has told 393 workers at its Okahandja abattoir that their jobs may be affected as the foot-and-mouth disease outbreak halts beef exports.
Workers who disagree with how a retrenchment is handled can refer the matter to the Labour Commissioner for conciliation.
Last updated: 7 October 2026
Two recent retrenchment announcements have put job security back on the agenda for Namibian workers. Beefcor Meat Suppliers is considering cutting up to 393 jobs at its Okahandja abattoir and says it will consult workers first, while brick maker City Sand and Bricks has retrenched about 145 employees. If you are facing the same situation, knowing what a retrenchment package in Namibia must contain is the best protection you have. This guide explains the legal minimum, the process your employer must follow and the mistakes to avoid.
What is a retrenchment package in Namibia?
A retrenchment package is the total amount an employer owes a worker who loses their job because the business is shrinking, restructuring or closing. In Namibia the minimum contents are set by the Labour Act 11 of 2007, mainly sections 30, 31, 35 and 37.
Retrenchment is a "no-fault" dismissal: you lose your job for economic, technological or structural reasons, not because of anything you did. That is why the law treats it differently from a dismissal for misconduct, which, if fair, does not attract severance pay.
What must a retrenchment package in Namibia include?
At minimum, the employer must settle every item below. Section 37 says these amounts must be paid on or before the next pay day after your employment ends.
Severance pay (section 35): At least one week's remuneration for each year of continuous service, if you have completed 12 months.
Notice or notice pay (sections 30 and 31): One day (up to four weeks' service), one week (up to one year) or one month (more than one year); the employer may pay instead of notice.
Annual leave (section 37): Pay for leave due from any completed leave cycle, plus pro rata leave for the incomplete cycle.
Wages for work done (section 37): All remuneration earned before the termination date.
Transport allowance (sections 36 and 37): Any amount due under section 36.
Certificate of service (section 37): Your name, the employer's name, address and industry, dates of employment, job description, remuneration at the date of termination and, if you ask, the reason for termination.
Employers and unions can agree to pay more than this. Some collective agreements or contracts may provide more, so check yours before you sign anything; the legal minimum is only the starting point for any retrenchment package in Namibia.
How is severance pay calculated in Namibia?
Multiply one week's remuneration by your number of completed years of continuous service. The Act sets this as the floor, so a contract or collective agreement can only improve on it.
Work out your weekly remuneration from your payslip.
Count your completed years of continuous service with the employer.
Multiply the two figures. The result is the minimum severance you are owed.
As an illustration only: a worker earning N$1,500 (Namibian dollars) a week with six completed years of service would be owed at least N$9,000 in severance, before notice pay and leave are added.
A few rules affect the count. Seasonal workers who return to the same employer for two or more successive years have that service treated as continuous, based on the periods actually worked. If a business is sold and you keep working there, your earlier service carries over to the new owner.
Who qualifies for severance pay, and who does not?
You qualify if you have completed 12 months of continuous service and you are dismissed, including through retrenchment. Severance is also payable if an employee dies while employed, or resigns or retires at 65.
A fair dismissal for misconduct or poor performance carries no severance. You can also lose it if you unreasonably refuse to be reinstated, or unreasonably refuse a job on terms no less favourable with a successor employer in certain cases, such as after the death of an individual employer.
What steps must an employer follow before retrenching?
Section 34 requires the employer to give notice, share information and negotiate before anyone is dismissed. Skipping these steps can make the retrenchment procedurally unfair.
Four weeks' warning: the employer must tell the Labour Commissioner and any recognised trade union about the intended dismissals, the reasons, the number and categories of workers affected and the dismissal date. Without a recognised union, the information goes to elected workplace representatives and the employees.
Disclosure: relevant information must be shared so the union or representatives can negotiate effectively.
Good-faith negotiation on alternatives to dismissal, selection criteria, ways to reduce job losses, the conditions of the dismissals and how to soften their impact.
Fair selection: workers must be chosen by criteria that are agreed, or that are fair and objective.
The four-week warning to the union or workplace representatives can be shortened if it is not practicable. If no agreement is reached, either side may refer the matter to the Labour Commissioner within one week, and a conciliator can hold meetings for up to four weeks. While that process runs, the employer may not dismiss the affected workers unless the dispute is settled.
What is happening at Beefcor and City Sand and Bricks?
Both cases show the law in action. Beefcor has announced proposed retrenchments and says it will consult, while City Sand and Bricks has set out retrenchment packages and a union says the process was flawed.
Beefcor, Okahandja
The Namibian reported that Beefcor chief executive Jurgens Twyman told employees in a memo that 393 jobs may be affected. The foot-and-mouth disease (FMD) outbreak has stopped slaughtering and beef exports, and the European Union (EU) has suspended imports of some Namibian meat. The list attached to the notice names line workers, deboners, offal and deep-cleaning staff, packers, drivers and clerks among those at risk.
According to the report, Beefcor said affected employees would receive one month's notice or pay instead, severance of one week's pay per completed year for staff with 12 months' service, accrued leave and certificates of service. The company said it would consult workers and their representatives first, and that the outbreak may make the normal four weeks' notice difficult.
City Sand and Bricks, Brakwater
New Era reported that about 145 workers lost their jobs after the company said it was overstocked and had stopped production. Its letter cited section 34 and offered four weeks' notice, leave and severance, but waived the requirement to work the four-week notice period, making 1 October the last working day. One schedule seen by the paper listed 23 workers owed about N$312,000 combined, with individual totals from N$4,860 to N$83,744.64. The Namibian Revolutionary Transport Union (Naretu) says the process was flawed; its general secretary, Petersen Kambinda, said of the company: "They were supposed to notify employees weeks before."
Common mistakes to avoid when you are retrenched
The biggest mistake is signing a retrenchment package in Namibia before checking it against the legal minimum. Once you sign, challenging the figures may be harder.
Not checking that severance is calculated on your full years of continuous service.
Forgetting to claim pro rata leave for the current leave cycle.
Leaving without a certificate of service, which can help with future job applications.
Ignoring the one-week deadline to refer a failed negotiation to the Labour Commissioner.
Negotiating alone when a union or workplace representative can bargain for the whole group.
What this means for you
If your employer announces retrenchments, your first step is to understand your retrenchment package in Namibia. Ask for the notice sent to the Labour Commissioner, the selection criteria and a written breakdown of your package. Compare every line of your retrenchment package in Namibia with the table above. If something is missing, raise it through your union or representative, and use conciliation at the Office of the Labour Commissioner if talks break down.
For related reading on Jobsiz, see Minimum Wage Namibia 2026: Rates by Sector, Namibia Mining Jobs: MPs Flag Labour Hire Abuses (2026) and ZAMCO Workers Unpaid Wages: Katima Mulilo Staff Petition PM.
Frequently asked questions
How much is a retrenchment package in Namibia?
It depends on your pay and length of service. Once you have 12 months' service, the legal minimum is one week's remuneration in severance for each year of continuous service, plus notice or notice pay, leave pay and wages owed. Collective agreements can add more.
Do I get severance pay if I have worked less than a year?
No. Severance under section 35 of the Labour Act only applies once you have completed 12 months of continuous service. You are still entitled to notice or notice pay, leave pay and any wages owed.
How much notice must my employer give before retrenchment?
The employer must inform the Labour Commissioner and the recognised union at least four weeks before the intended dismissals, unless that is not practicable. Your individual notice is at least one day, one week or one month, depending on how long you have worked there.
When must my retrenchment package be paid?
On or before the next pay day after your employment ends, according to section 37 of the Labour Act. The employer must also give you a certificate of service.
Can I challenge a retrenchment in Namibia?
Yes. If negotiations fail, either party can refer the matter to the Labour Commissioner within one week, and a conciliator is appointed. You can also refer a dispute of unfair dismissal to the Labour Commissioner.
Is severance pay paid when I am dismissed for misconduct?
No. The Act excludes severance where a worker is fairly dismissed for misconduct or for poor performance. It is designed for no-fault terminations such as retrenchment.
Sources
This article was compiled by Jobsiz from the sources listed above, with AI-assisted writing and automated fact-checking. Published 7 October 2026. We update stories when new verified information becomes available.