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Article 32/2024

LabourEdge

The scenario is as follows: an employee commits misconduct during a fixed-term contract; the employer takes action and dismisses the employee; when the matter is finally heard by the CCMA and a finding is made that dismissal is substantively and procedurally unfair, what are the factors to be taken into account to determine whether or not reinstatement is the appropriate remedy?

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The labour appeal court, in Toyota SA Motors (Pty) Ltd v CCMA and Others (2023) 34 SALLR 74 (LAC); (2023) 44 ILJ 1038 (LAC), approached this issue as follows:

  • integral in the exercise of an arbitrator’s discretion is the nature of the employment contract and whether it is in existence when the appropriate remedy is considered
  • the constitutional court, in Toyota SA Motors (Pty) Ltd v CCMA and Others (2016) 37 ILJ 313 (CC), held that reinstatement was confined to the scenario where, at the date of the finding that the dismissal was unfair, the original employment contract was still in existence
  • where the employee is employed on a fixed-term contract, as is the case in the scenario described above, the expiry of which precedes the finding of an unfair dismissal, reinstatement or re-employment is not legally permissible and the only legal permissible remedy is that of compensation
July 20, 2026

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.

July 13, 2026

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?

July 6, 2026

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?