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Article 9/2022

In assessing damages for loss of earnings or support suffered by an ex-employee, with reference to a delictual as opposed to a labour law claim, it is usual for a deduction to be made for contingencies as well as general contingencies for which no explicit allowance has been made in the actuarial calculations.  What are contingencies and what is the approach to be adopted in respect of general contingencies?

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  • contingencies are ‘the art of foretelling the future’ – however, general rules have been established: the younger a claimant, the more time he or she has to fall prey to changes and uncertainties of life, such as a downturn in the economy, leading to a reduction in salary, retrenchment, unemployment, ill-health, death, etc; the longer the remaining working life, the more likely the possibility of an unforeseen event impacting on the assumed trajectory of the person’s remaining career – as a general principle, in a pre-morbid scenario, the younger the age of the claimant, the higher the contingency
  • In Road Accident Fund v Guedes 2006 (5) SA 583 (SCA), the court referred with approval to The Quantum Yearbook, by R Koch, under the heading ‘General contingencies’, where it states that when ‘…assessing damages for loss of earnings or support, it is usual for a deduction to be made for general contingencies for which no explicit allowance has been made in the actuarial calculation. The deduction is the prerogative of the court…’.

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  • contingencies are ‘the art of foretelling the future’ – however, general rules have been established: the younger a claimant, the more time he or she has to fall prey to changes and uncertainties of life, such as a downturn in the economy, leading to a reduction in salary, retrenchment, unemployment, ill-health, death, etc; the longer the remaining working life, the more likely the possibility of an unforeseen event impacting on the assumed trajectory of the person’s remaining career – as a general principle, in a pre-morbid scenario, the younger the age of the claimant, the higher the contingency
  • In Road Accident Fund v Guedes 2006 (5) SA 583 (SCA), the court referred with approval to The Quantum Yearbook, by R Koch, under the heading ‘General contingencies’, where it states that when ‘…assessing damages for loss of earnings or support, it is usual for a deduction to be made for general contingencies for which no explicit allowance has been made in the actuarial calculation. The deduction is the prerogative of the court…’.
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?