Tau Mining, a company with operations in the Northern Cape province, has once again found itself at the center of a retrenchment controversy. In 2018, the company allegedly retrenched over 100 employees at its Kathu operation, leaving them without payment for their service notice, severance package, and provident fund.
In a disturbing repeat of events, Tau Mining has allegedly retrenched 570 employees at its Aggensy operation, with reports indicating that the company is refusing to pay the affected employees their hard-earned benefits.
The African Perspective has attempted to contact Tau Mining for comment on these allegations, but our efforts have been met with silence. The company’s refusal to engage with the media or provide clarity on its actions has only served to fuel concerns about its treatment of employees.
The alleged retrenchments and non-payment of benefits have left many families in a precarious financial situation, with some employees claiming they have been left without any means of supporting themselves or their loved ones. With Christmas just around the corner, many of these workers are facing a bleak and uncertain festive season.
According to one worker, who wishes to remain anonymous, they were told to go home on October 4th and that Tau Mining would communicate everything afterwards. However, the company failed to pay their October and November salaries, and their severance packages were never paid. The worker also alleged that Tau Mining failed to provide medical exit exams, which are necessary for the workers to claim their pension funds.
The workers last received payment in September 2024. Some workers attempted to claim their pension funds but were informed that Tau Mining had not submitted the necessary documents, preventing them from accessing their funds.
Furthermore, sources close to the matter have alleged that Tau Mining has a history of exploiting its employees, with reports of:
- Poor working conditions
- Long working hours without adequate compensation
- Failure to provide necessary safety equipment
- Intimidation and harassment of employees who speak out against the company’s practices
These allegations paint a disturbing picture of a company that prioritizes profits over people, and highlights the need for urgent action to protect the rights of Tau Mining’s employees.
As the situation continues to unfold, The African Perspective will continue to seek answers from Tau Mining and advocate for the rights of the affected employees.
In the meantime, we urge the relevant authorities to take immediate action to address the concerns of the allegedly retrenched employees and ensure that Tau Mining is held accountable for its actions.
Under South African labor laws, companies are required to provide severance packages to employees who are retrenched. The Basic Conditions of Employment Act (BCEA) and the Labour Relations Act (LRA) regulate the payment of severance packages.
According to the BCEA, an employer is required to pay an employee who is retrenched a minimum severance pay of one week’s remuneration for each completed year of service, or a minimum of two weeks’ remuneration, whichever is greater.
In addition to the minimum severance pay, some companies may offer additional benefits, such as notice pay, leave pay, payment for accrued benefits, outplacement assistance, and career counseling.
However, the specific terms and conditions of a severance package can vary depending on the company’s policies, the employee’s contract, and the applicable laws and regulations.
In the case of Tau Mining, the company’s alleged failure to pay severance packages to retrenched employees is a serious contravention of South African labor laws.
