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Article 26/2025

What is the distinction between compensation awarded for an automatically unfair dismissal (ito s187(1) of the LRA) and compensation in terms of the EEA (ito s50(2)(a) of the EEA) and damages in terms of the EEA (ito s50(2)(b) of the EEA)?

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LRA: AUTOMATICALLY UNFAIR DISMISSALS (s187(1))

  • Compensation is calculated in terms of s194(3) of the LRA.
  • It must be just and equitable in all circumstances, but no more than 24 months’ remuneration.

EEA: UNFAIR DISCRIMINATION (s6(1))

  • Damages awarded in terms of s50(2)(b) of the EEA:
    • such damages are to be awarded for actual/potential monetary loss suffered by the employee (patrimonial loss)
  • Compensation to be awarded in terms of s50(2)(a) of the EEA:
    • Such compensation is a solatium for the insult/humiliation/indignity/hurt associated with the unfair discrimination (non-patrimonial loss).

See:

  • BMW (SA) (Pty) Ltd v NUM (2020) 31 SALLR 119 (LAC); (2020) 41 ILJ 1877 (LAC)
  • SA Airways (Pty) Ltd v Janse van Vuuren (2014) 35 ILJ 2774 (LAC)
  • ARB Electrical Wholesalers v Hibbert (2015) 36 ILJ 2989 (LAC)

The previous article dealt with the distinction between misconduct constituting desertion and misconduct constituting abscondment – see, further, in this regard, Okhahlamba Local Municipality v Mabuya (2021) 32 SALLR 12 (LC).

In this article, what we attempt to do is provide some clarity as to a very different misconduct, namely, the misconduct of deeming desertion.

What is the difference between desertion and abscondment?

We think that everyone understands that an employer is vicariously liable for the wrong committed (an act or omission) by its employee during the course/scope/sphere of employment/engagement in any activity reasonably incidental to it.

But, what is the extent of an employer’s vicarious liability where the employee commits a wrong on his or her own volition?