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Article 38/2023

How is compensation to be calculated when a dismissal is only procedurally unfair – i e when section 193(2)(d) of the LRA is applicable?

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In Zeda Car Leasing (Pty) Ltd t/a Avis Fleet v Van Dyk (2020) 31 SALLR 51 (LAC), the labour appeal court adopted the following approach:

  • the compensation must be just and equitable in all circumstances (see s194(1) of the LRA
  • with reference to Johnson & Johnson v CWIU (1999) 20 ILJ 89 (LAC), the following factors are
    relevant:

    • actual loss or patrimonial loss is irrelevant
    • the award is indeed a solatium (as a redress)
    • amongst other things, the following are relevant: the extent of deviation from the required procedure, the employee’s conduct, the employee’s length of service and the anxiety and hurt suffered by the employee

(see, further, Alpha Plant v Simmonds [2001] 3 BLLR 361 (LAC), ARB Electrical Wholesalers v Hibbert (2015) 36 ILJ 2989 (LAC) and Lorentzen v Senachem (Pty) Ltd [1998] 8 BLLR 814 (LC)

It appears that an appeal court will only interfere if the irregularity or the misdirection entails either the ignoring of relevant facts or, alternatively, whether or not the compensation was based on inadequate facts (see, further, Road Accident Fund v Guedes 2006 (5) SA 583 (SCA).

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?