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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…’.
October 19, 2026

Section 41(2) of the BCEA regulates the entitlement of an employee, dismissed for reasons based on the employer’s operational requirements, to severance pay.

In terms of s41(4) of the BCEA, an employee, who unreasonably refused to accept the employer’s offer of alternative employment with that employer or any other employer, is not entitled to severance pay ito s41(2).

How does the assistance provided by the retrenching employer to a retrenched employee affect such employee’s entitlement to severance pay?

October 12, 2026

What is the short test to be applied to determine whether there is compliance with the reasonable decision-maker test?

When determining whether or not the arbitrator of the CCMA or bargaining council behaved like a reasonable decision-maker, what are the ‘questions to be asked’?

What is the test recently applied to determine whether an arbitration award should be set aside on review?

October 5, 2026

In the scenario where a group of employees, participating in a demonstration, picket, strike, etc, are participating in unlawful conduct, but a number of other employees, who are also participating in such demonstration, picket, strike, etc, are not participating in such unlawful conduct, will the employer be entitled to obtain an interdict against both groups of such employees?