Is my previous company suppose to apply for a tax directive on retrenchment?

I was retrenched last year July (2015) Once I had received my notice and my retrenchment package I noticed that they had taxed me on my retrenchment package. I asked the Payroll/HR department if they had applied for a tax directive to which they replied that it was not necessary. I told them that as far as my understanding went it was necessary to determine how much tax I should pay if any.

The company needs to do this unfortunately. What was their reasoning for refusing?

They didn't have a reason.

Just told me that it is not necessary.
But I have contacted SARS and they told me it is always necessary in the case of a retrenchment.

Is that correct?

Yes it is, your company is in violation of the Tax Act and needs to remedy this.