42 Judgment No. CCZ 2/18 Constitutional Application No. CCZ 86/15 been accepted at international level on how employees whose contracts of employment have been terminated on notice at the initiative of employers must be treated under national law. Article 12(1) of the Convention provides: “12(1) A worker whose employment has been terminated shall be entitled, in accordance with national law and practice, to – (a) a severance allowance or other separation benefits, the amount of which shall be based, inter alia, on length of service and the level of wages and paid directly by the employer …”. Section 12C(2) of the Act gives effect to the purpose of Article 12(1) of the Convention of ensuring that workers whose employment has been terminated on notice at the initiative of the employer are afforded some form of income protection to mitigate the adverse effects of termination of employment. It is a recognised principle of labour relations reflective of social justice that when employment is terminated for reasons other than misconduct, compensation for long service rendered is paid. Payment of a severance package based on length of service to an employee whose contract was terminated for a reason other than misconduct has always been viewed as a means of ensuring that the employee has a soft and safe landing after losing employment. The adoption of principles of Article 12(1)(a) of the Convention is an important factor which serves to show that the decision to retrospectively apply the financial obligation on employers who had terminated employees’ contracts on notice on or after 17 July 2015 to pay

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