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Employment relationship and dismissal law
Law@work 3rd edition (2015)
Chapters 4 & 9-12
Graham Giles [based on the book]
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Chapter 4 – pp 55-82
1 Introduction
2 Origins– Table – p 58 employee/ind contractor
3 International guidelines – ILO
4 Elusive ‘employee’– Introduction– Defined (60 – 63)
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Chapter 4 (cont) Presumption 4.3– pp 63-66
7 factors– Control of manner– Control of hours– Part of organisation– At least 40 hours per month– Economic dependence– Tools or equipment– Only works for one person
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Chapter 4 (cont)Proving employment relationship
no amendment to s213 – “employee”evidentiary tool only
Beya v GPSSBC (JR1334/2012) [2014] ZALCJHB 467 (27.11.2014) per Snyman AJ
Court interpreters – not employees
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Chapter 4 (cont)
– Social security pp 66-67
5 Regulation of non-standard
5.1 Introduction• Employment Services Act
5.2 TES• Background• Protection• ESA of 1994 – pp 73-74
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Chapter 4 (cont)
5.3 Fixed term employees– S 198B(1)
5.4 Part-time – p 76
5.5 Casual – p 77
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Chapter 4 ( cont)
7 Unauthorised & illegal work– Working illegally – no permit– Illegal work – sex work
8 Employer ?- p80-82
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9 - Unfair Dismissal (p 222)2 What is a dismissal?
Contents 2.1 Statutory meaning2.1.1 Termination – with or without notice2.1.2 Fixed-term contract – non-renewal21.3 Maternity leave – non-resumption2.1.4 Selective dismissal2.1.5 Constructive dismissal2.1.6 Transfer of business2.2 Terminations – not “dismissals”
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2 What is a Dismissal?2.2.1 Resignations
Resignation – unilateral act ?
Fijen v CSIR 1994 (LAC)
CEPPWAWU v Glass & Aluminum 2002 (LAC)
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2 What is a Dismissal?2.2.1 Resignations
Resignation – unilateral act ?Amazwi Power Products v Turnbull 2008 (LAC)
Distinguish relationships of director & employee
Lottering v Stellenbosch Mun 2010 (LC)
Mafika Sihlali v SABC 2010 (LC)
Kukard v GKD Delkor (Pty) Ltd 2014 (LAC)
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2 What is a Dismissal?2.2.3 Age – retirement (235)
Reaching retirement age SATAWU v Old Mutual 2005 (LC) - early retirementCash Paymaster Services v Brown 2005 (LAC)Hibbert v ARB Electrical Wholesalers (Pty) Ltd 2013 (LC)Forced retirement at age 65 automatically unfairRogers v Exactocraft (Pty) Ltd 2014 (LC) per Steenkamp JPremature termination of fixed-term contract entered into post-retirement.
Claim for compensation, severance pay and damages. Entitlement to severance pay and application of BCEA s 84(1) considered.
SA Airways (Pty) Ltd v GJJVV [2014] 8 BLLR 748 (SCA)Unfair discrimination based on age.
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2 What is a Dismissal?2.2.3 Age – retirement (235)
Problem with continuing thereafter?Botha v Du Toit Vrey 2006 (LC)
Evans v Japanese School 2006 (LC)Datt v Gunnebo Industries 2009 (LC) - questionableSA Metal v Gamaroff 2009 (LAC)
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2 What is a Dismissal?2.2.5 Mutual agreement
Ensure voluntary and clear understandingCEPPAWU v Glass & Aluminium 2002 (LAC)
Baudach v UTC 2000 (SCA)
misrepresentation by employer
Ferguson v Basil Read (Pty) Ltd 2013 (LC)
Result – not a “dismissal”
Trio Glass v Malapo NO 2013 (LC) – void agreement
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What is a Dismissal?Further Reading
Du Toit et al: Labour Relations Law
[5th edn – 2006]
379 – 388
[6th edn – 2015]
425 – 432
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Chapt 10-Unfair DismissalAutomatically unfair [1] (p 249)
Contents
01 Introduction
02 Section 5 – contrary to provisions
03 Strike or protest action - participation
04 Strike – refusal to do work
05 Matter of mutual interest - compulsion
See next slide
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Chapt 10-Unfair DismissalAutomatically unfair [2]
Contents [continued]
06 Exercise of LRA rights
07 Pregnancy
08 Unfair discrimination
09 Transfers –LRA s197
10 Breach of Protected Disclosures Act
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10 Automatically unfair01 Introduction (p 251)
Section 187 – effectILO Convention 158/1982 arts 5/6Main reason – factual issueOnus – employee to prove [s192(1)] –
dismissal & automatically unfair reason – see
SACWU v Afrox 1999 (LAC)Mashava v Cuzen & Woods 2000 (LC)Mafomane v Rustenburg Platinum 2003 (LC)Kroukam v SA Airlink 2005 (LAC)Janda v FNB 2006 (LC)De Beer v Global Paws 2008 (LC)Chizunza v MTN 2008 (LC)Popcru v Dept Correctional Services 2010 (LC)
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10 Automatically unfair01 Introduction (cont)
See also
Schatz v Elliott International 2008 (LC)De Beer v SA Export Connection 2008 (LC)New Way Motor & Diesel v Marsland 2009 (LAC)Business & Design Software v Van der Velde 2009 (LAC)Seaward v Securicor SA 2009 (LAC) per Patel JAAtkins v Datacentrix 2010 (LC)Dept of Correctional Services v Popcru 2011 (LAC)
Automatic termination clause
SA Post Office v Mampeule 2010 (LAC)
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10 Automatically unfairFurther Reading & References
Du Toit et al: Labour Relations Law
[5th edn – 2006]
388 – 394
[6th edn – 2015]
433 – 439
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Dismissal - reason
Goldfields Logistics (Pty) Ltd v Smith (JA 42/08) [2010] ZALAC 33 (24 August 2010)• Legitimate operational requirements• Even discipline for conduct• Management has choice• Provided no improper motive• Fair and advantageous to employee• Fairness depends on facts of case
Satawu v Khulani FSS (Pty) Ltd (2011) 32 ILJ 130 (LAC) – see page 314 of Law@Work
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11 Unfair Dismissal1 Fair reason–conduct (p 273)
Contents
1.1 Introduction
1.2 Justification - relating to (mis)conduct
1.3 Substantive fairness
1.4 Procedural fairness
1.5 Disciplinary enquiry - reopening
1.6 “Shop stewards”
1.7 Dispensing with enquiry
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11 Fair reason – conduct1.1 Introduction
LRA s188 – Reason – valid & fair –– related to conduct [+ breach of trust]
– related to capacity [+ loss of confidence]– based on operational requirements Fair procedure
ILO Convention 158/1982 – lawful - BCEARead Part II arts 4-12 as a whole
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11 Fair reason – conduct1.1 Introduction [2]
Onus – employer prove lawful and:– Valid reason and fair reason – Fair procedure
General approach [not punishment] –De Beers v CCMA 2000 (LAC) per Conradie JASidumo v Rustenburg Plats 2007 (CC)
– establish valid factual basis [conduct/capability]– fairness of reason [eg breach of trust] – fairness to both parties [eg commercial rationale]– consider all relevant factors [personal, etc]
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11 Fair reason – conduct1.3 Substantive fairness (281)
Sch 8: Code: item 7• rule contravened• if so –
– Must be lawful / valid / reasonable / standard– Employee’s awareness thereof– Employer applied it consistently– Appropriate response – [trust & confidence]
Note: Criminal offences are implied rules
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11 Fair reason – conduct1.4 Procedural fairness (288)
Sch 8: Code item 4 – guide-lines
Modise v Steve’s Spar 2000 (LAC)Rand Water Board v CCMA 2005 (LC)NUMSA v Atlantis Forge 2005 (LC)Avril Elizabeth Homes 2006 (LC)NUM v Billard Contractors 2006 (LC)Semenya v CCMA 2006 (LAC)Old Mutual v Gumbi 2007 (SCA)
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11 Fair reason – conduct1.4 Procedural fairness (288)
Essential points –– full initial factual investigation– No criminal-type “trial “ required– formulate factual allegations in writing– allow employee proper opportunity to be
heard (respond)– fair representation throughout – fellow
employeeCaution: Special rules for unprotected strikes
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11 Fair reason – conductFurther Reading & References
Du Toit et al: Labour Relations Law
[5th edn – 2006]
394 – 412
[6th edn – 2015]
442 – 461
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11 Unfair Dismissal2 Fair reason – capacity (293)
Contents
2.1 Introduction
2.2 Related to medical (in)capacity
2.3 Related to poor work performance
2.4 Other forms
2.5 Impossibility of performance
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Final fair reason to dismiss
Based on operational requirements
LR s 189 and 189A
Commonly referred to as a ‘no fault’ dismissal
LAC suggests it could always be relied on as no prejudice to employees
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12 Unfair DismissalFair reason - “OR” (p 313)
Contents
1 Introduction
2 Substantive fairness
3 Procedural fairness
4 Consultation process
5 Preferential rehiring
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12 Fair reason – operational Meaning – ETSOS [1]
Tension:– job security – social good– enterprise – efficiency / competitiveness
Two-tier approach –– larger and smaller enterprises– s189A – election – treat as “right” or
“interest” dispute – [power option see “organisational rights”]
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12 Fair reason – operational Meaning – ETSOS [2]
“operational requirements” –– avoid use of word “retrenchment”– LRA s 213 – definition – “ETSOS”– ILO Convention 158/1982 art 4– Code of Good Practice
• Caution: – unhelpful
– correct classification crucial• severance pay & choice of LC or CCMA
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12 Fair reason – operational 2.1 Substantive fairness (p 313)
Meaning of “operational requirements” [OR]explain “retrenchments’ – suggest avoid useILO Convention 158Broad statutory definition - interpretation
Freshmark v CCMA 2003 (LAC)Fry’s Metals v NUMSA 2003 (LAC)NEHAWU v Univ of Pretoria 2005 (LAC) Forecourt Express v SATAWU 2006 (LAC)SATAWU v Khulani Fidelity Security Services 2011 (LAC)
Reason based on OR - importance
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12 Fair reason – operational 2.4 Selection criteria [1] (317)
Matter for consultation - must be fair & objectiveGenerally some or all of service & skills &
qualifications“LIFO” – not a “principle”
Neuwenhuis v Group Five Roads 2000 (LC)NUM v Anglo American 2005 (LC)CEPPWAWU v Republican Press 2006 (LC)
“bumping” – practical problemsPorter Motor Group v Karachi 2002 (LAC)General Food Industries v FAWU 2004 (LAC)
Affirmative action – Thekiso v IBM 2007 (LC)
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12 Fair reason – operational 3 Procedural fairness (321)
Appropriate legal regimedistinguish small & large – LRA s189A
s189A – requirements – see pages 327-330
note use of word ‘contemplates’
Notice of contemplation of dismissal–s189(3)written notice required (322)
General Food Industries v FAWU 2004 (LAC)
Enterprise Foods v Allen 2004 (LAC)
Chester Wholesale Meats 2005 (LAC)
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12 Fair reason – operational 3.2 Notice (322)
Notice of contemplation of dismissal–s189(3)written notice required
General Food Industries v FAWU 2004 (LAC)
Enterprise Foods v Allen 2004 (LAC)
Chester Wholesale Meats 2005 (LAC)
NEHAWU v University of Pretoria 2006 (LAC)
Oosthuizen v Telkom 2007 (LAC)
NUMSA v General Motors of SA 2009 (LC)
Continental Tyre v Numsa 2008 (LAC) – two track
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12 Fair reason – operational 3.3 Appropriate parties (p 323)
Appropriate consulting party
LRA s189(1) – parties – strict hierarchy
Difficulties –minority unions & individuals• caution: - recognised trade union must not be
underminedSikhosana v Sasol Synthetic 2000 (LC)
SACCAWU v Amalgamated Retailers 2002 (LC)
United National Breweries v Khanyeza 2006 (LAC)
Oosthuizen v Telkom 2007 (LAC)
Aunde SA v NUMSA 2009 (LC) & 2011 (LAC)
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12 Fair reason – operational 4 Consulting process (p 325)
“meaningful joint consensus-seeking process”Various matters specifiedEmployer must allow other party –
– to make representations– respond to them– state reasons if there is disagreement– writing – respond it writing [evidence]
• NUMSA v Tiger Wheel 2001 (LC) • NUMSA v Kaefer Thermal 2002 (LC)• ABSA v Crowhurst 2005 (LAC)
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12 Fair reason – operational 4.1 Information – disclosure (326)
LRA s189(3) – list of informationFundamental to process [evidence]
Chester Wholesale Meats v NIWUSA 2005 (LAC)No absolute right –
– relevant information [LRA s 16(2)]– legally privileged– prohibited– confidential and cause substantial harm– private, personal – without consent
Onus on employer if it refuses to disclose
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12 Fair reason – operational 4.3 Severance pay [1] (p 330)
ILO Convention 158/1992 art 12– only forfeit when “misconduct serious”
Contrast LRA & BCEA –– forfeit when fair reason relates to conduct or
capacity – Comment: BCEA seems unfair
Reminder: - “notice” must always be givenBCEA s 41 read with s 84 and s 35Policy considerations – “right” to a job?
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12 Fair reason – operational Further Reading & References
Du Toit et al: Labour Relations Law
[5th edn – 2006]
422 – 446
458 – 467 [dismissal of strikers]
[6th edn – 2015]
472 – 496
514 – 524 [dismissal of strikers]
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9 Dispute resolution (p 240)Contents of part 4
1. Referrals to arbitration
2. Referrals to Labour Court
3. Onus in dismissal disputes
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9 Dispute resolutionIntroduction [1] (240)
Preference – resolve by agreement
Conciliation compulsory
Exceptions to rule –– LRA s188A – pre-dismissal arbitration– neutral persons conducts hearing– binding arbitration award varying statute
After conciliation LRA determines route
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9 Dispute resolutionIntroduction [2]
Institutions – different roles –– CCMA – s115 functions & s135 powers– Bargaining & statutory councils– Labour Court– Labour Appeal Court
Private arbitration important – accredited agencies
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9 Dispute resolutionIntroduction [3]
Route – determined by nature of dispute
Policy – Labour Court determine disputes having economic or public policy component
Essence – dismissals [other than automatic] - – CCMA – related to conduct or capacity– LC – based on operational requirements
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9 Dispute resolution (243)Contents - part 5
Remedies for unfair dismissal
1. Introduction
2. Reinstatement or re-employment
3. Compensation
4. Procedure – when based on operational requirements
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DISCIPLINARY CODE
Purpose and objects
Advance interests of undertaking
Protect interests of employees
Culture of care and mutual respect
Fair and consistent treatment
Create proper framework
Promote effective dispute resolution
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DISCIPLINARY CODE
• Management sets proper standards of:– Performance– Behaviour
• Need for trust and confidence• Take corrective action where necessary• Without prejudice to right to dismiss
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DISCIPLINARY CODE
• Can be excluded as a:– Term or condition of employment
• Advisable to avoid being bound by contract• Employer should reserve all rights
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DISCIPLINARY CODE
• Reserve right to terminate employment– Any cause recognised by law (BCEA)– Valid and fair reason
• Related to conduct/capability of employee• Based on operation requirements
• Consider paying notice/severance unless:– Gross misconduct/material breach of contract
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DISCIPLINARY CODE
Gross misconduct• Violence• Dangerous• Wilful damage• Dishonesty• Misuse of substances• Illegal conduct• Unprotected coercive action
Unacceptable conduct• Immoral• Disloyalty• Abuse of privileges• Insubordination• Neglecting duties• Possession of firearm• Insolvency
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DISCIPLINARY PROCEDURE
• Nine steps• Proper investigation• Right to be heard [hearing]• Proper consideration of facts• Establish category – degree of fault• Gross misconduct – dismiss• Grey area – discipline or dismiss
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STEP I: INITIAL INVESTIGATION
• Receive complaint• Preliminary investigation• Get written statements and documents
• Decide if necessary to proceed
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STEP II: FURTHER INVESTIGATION
• Appoint responsible manager• Prepare written allegations/averments• Notify employee of meeting• Clarify the procedure• Allow employee to call witnesses• Meet and hear note employee’s responses
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STEP III: CONSIDER FACTS
• Adjourn to consider responses to facts• Provisionally decide if to continue
– Possibility of dismissal– Progressive discipline
• Written warning• Final warning
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STEP IV: RESUMPTION
• All employee to provide extra evidence• Would include:
– Past history– Warnings– Personal circumstances
• Employee may call further witnesses
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STEP V: DECISION TIME
• Assess all relevant evidence– Undisputed facts– Disputed facts– Validity of any reason– Fairness of reason
• Decide on further action
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STEP V [cont]: DECISION TIME
• Choose one of three further steps
– Progressive discipline – step VI– Gross misconduct – step VII
• Must be clear and convincing evidence
– Valid and fair reason to dismiss – step VIII
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STEP VI: PROGRESSIVE DISCIPLINE
• Caution• Informal warning• Written warning• Final written warning• Suspension without pay
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STEP VII: SUMMARY TERMINATION
• Lawfulness and fairness - balance• Material breach of contract • Justifies summary termination• Employee forfeits right to:
– Notice, or payment instead of notice– Severance benefit such as pay
• Apply BCEA and common law - lawful
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STEP VIII: CONSULTATION
• Continue investigation• Consult with employee• Try to reach consensus on:
– Notice pay– Ex gratia payment
• Sign a settlement agreement if possible
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STEP IX: TERMINATION
Except where mutual agreement:• Provide written notice of termination• Certificate of service• Pay all outstanding amounts to employee
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