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Article 09/2021

Labour Edge

An employee is not obliged to challenge the procedural unfairness of his or her dismissal in the CCMA.  The employee may also challenge the non-compliance of such procedure with the contractual obligations of an employer.  Such challenge will occur in the labour court and will be for specific performance or the cancellation of the agreement and a claim for damages.  On what basis did the labour court recently, in Wereley v Productivity South Africa and Naidoo NO (2020) 31 SALLR 103 (LC), hold that it is a conceptual mistake to collapse these two causes of action simply because they both concern procedural non-compliance?


  1. It is trite that noncompliance with disciplinary procedures might lead to a finding that a dismissal was procedurally unfair, but the power of an arbitrator is limited to awarding compensation. The CCMA is not empowered to determine the contractual lawfulness of a decision to dismiss an employee, in the absence of complying with a contractually binding pre-dismissal procedure. The contractual remedies for noncompliance with an obligatory procedure remedies are not equivalent to the remedy for procedurally unfair dismissal in the LRA.
  2. In this regard, in Ngubeni v National Youth Development Agency and Another (2014) 35 ILJ 1356 (LC), at paragraph [21], the court held, that; ‘Insofar as the remaining requirements relevant to the relief sought are concerned, there is no alternative remedy that is adequate in the circumstances. Ngubeni has no right to pursue a contractual claim in the CCMA, and the law does not oblige him to have recourse only to any remedies that he might have under the LRA. Equally, he is fully entitled to seek specific performance of his contract, and is not obliged to cancel the agreement and claim damages.’
  3. On the basis of the above differences, Legrange J, in Wereley, held that It is a conceptual mistake to collapse the two causes of action simply because both concern issues of procedural noncompliance.

 

Precautionary suspensions

In the public sector, the Senior Management Service Handbook (SMS Handbook) directly addresses precautionary suspensions and the 60-day time limit.

Clause 2.7(2)(c) of the SMS Handbook provides that ‘If a member is suspended or transferred as a precautionary measure, the employer must hold a disciplinary hearing within 60 days. The chair of the hearing must then decide on any further postponement.’

Regulation 6 of the Local Government: Disciplinary Regulations Senior Managers, 2010 (Regulations) provides for the precautionary suspension of senior municipal employees and Regulation 6(6)(a) provides: ‘If a senior is suspended, a disciplinary hearing must commence within three months after the date of suspension, failing which the suspension will automatically lapse.’

What are the principles governing a determination of the question as to whether or not a senior municipal employee’s suspension automatically lapses in terms of the aforesaid Regulation 6(6)(a)?

Obviously, the answers to the aforesaid question are very relevant in the private sector where, firstly, a collective agreement regulates a similar process or, alternatively, such contractual rights have been created between the parties, to be enforced in terms of s77(3) of the BCEA.

In the previous article, we dealt with the consequences of a plant level collective agreement with a definite beginning and end date. We indicated to you that, in line with s23(2) of the LRA, and an analysis of the relevant case law, that, once such a collective agreement reaches its expiry date, it expires and is no longer of any force or effect. In this article, we deal with the scenario where a plant level collective agreement is concluded for an indefinite period and the employer gave notice to terminate same.

What are the consequences when a party to a plant level collective agreement, concluded for an indefinite time period, gives notice to terminate such collective agreement?

In terms of s23(2), a collective agreement binds, for the whole period of the collective agreement, every person so bound in terms of s23(1)(c) (the members of a registered trade union and the employers who are members of a registered employers’ organisation who are a party to the collective agreement, if the collective agreement regulates the terms and conditions of employment, or the conduct of the employers and employees) who was a member at the time it became binding, or who becomes a member after it became binding (irrespective of whether or not that person continues to be a member of such trade union or employers’ organisation for the duration of the collective agreement).

What is the relevant case law development as to a plant level collective agreement that has an expiry date, i e does such collective agreement continue to be of force and effect after such expiry date?