Transcript Unfair Dismissal 2006

Employment relationship
and dismissal law
André Van Niekerk et al
Law@work
3rd edition (2015)
[Chapts 9 -12 – pp 219-334]
Graham Giles [based on the book]
1 Introduction
Definition–“employee” [1]
LRA s213 – definition
LRA s185 – every employee – all-inclusive
Conjunctive interpretation of “employee”
Liberty Life v Niselow 1996 (LAC)
2
1 Introduction
Definition–“employee” [1]
But see: Benjamin article in ILJ
Independent contractors –
Linda Erasmus Properties 2007 (LC)
Denel v Gerber 2005 (LAC)
Sanlam Life Insurance v CCMA 2009 (LAC)
3
1 Introduction
Definition–“employee”[2]
Casual employees
NUCCAWU v Transnet 2001 (LC)
Temporary employees
Executives & senior managerial employees
Probationary employees – see Code of Good Practice
4
1 Introduction
Definition–“employee”[2]
Temporary employment services [TES] – s198(1)
Dick v Cozens Recruitment Services 2001 (CCMA)
LAD Brokers v Mandla 2001 (LAC)
5
1 Introduction
Definition–“employee”[3]
Persons – accepted but not commenced work
Wyeth SA v Manqele 2005 (LAC) – still an “employee”
Employees with diplomatic immunity
Volunteers
6
1 Introduction
Definition–“employee”[3]
Clergy –
Church of the Province v CCMA 2001 (LC)
Wagenaar v URCSA 2005 (CCMA)
but see Denel v Gerber 2005 (LAC)
Public Officials –
Khanyile v CCMA 2005 (LC) - magistrate
Miskey v Maritz NO 2006 (LC) – board members
7
1
Introduction
Proving employment relationship
Amendments in 2002
LRA [s200A] & BCEA [s83A]
employment presumed
•
•
any one of 7 factors
not apply if earnings above set limit
– R205 433.30 per annum
See Denel v Gerber 2005 (LAC) at para 99
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1
Introduction
Proving employment relationship
7 factors
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–
–
–
–
–
–
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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1
Introduction
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
10
1
Introduction
Further Reading & References
Du Toit et al: Labour Relations Law
[5th edn – 2006]
72 – 80 & 379 - 388
[6th edn – 2015]
87 – 102 & 423 – 425
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9 - Unfair Dismissal (p 222)
2
What is a dismissal?
Contents
2.1 Statutory meaning
2.1.1 Termination – with or without notice
2.1.2 Fixed-term contract – non-renewal
21.3 Maternity leave – non-resumption
2.1.4 Selective dismissal
2.1.5 Constructive dismissal
2.1.6 Transfer of business
2.2 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 retirement
Cash Paymaster Services v Brown 2005 (LAC)
Hibbert v ARB Electrical Wholesalers (Pty) Ltd 2013 (LC)
Forced retirement at age 65 automatically unfair
Rogers v Exactocraft (Pty) Ltd 2014 (LC) per Steenkamp J
Premature 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) - questionable
SA Metal v Gamaroff 2009 (LAC)
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2 What is a Dismissal?
2.2.5 Mutual agreement
Ensure voluntary and clear understanding
CEPPAWU 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 Dismissal
Automatically 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 Dismissal
Automatically 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 unfair
01
Introduction (p 251)
Section 187 – effect
ILO Convention 158/1982 arts 5/6
Main reason – factual issue
Onus – 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 unfair
01
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 JA
Atkins 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 unfair
Further 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)
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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
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11 Unfair Dismissal
1
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 – conduct
1.1 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 - BCEA
Read Part II arts 4-12 as a whole
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11 Fair reason – conduct
1.1 Introduction [2]
Onus – employer prove lawful and:
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Valid reason and fair reason
Fair procedure
General approach [not punishment] –
De Beers v CCMA 2000 (LAC) per Conradie JA
Sidumo v Rustenburg Plats 2007 (CC)
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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 – conduct
1.3 Substantive fairness (281)
Sch 8: Code: item 7
• rule contravened
• if so –
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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 – conduct
1.4 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 – conduct
1.4 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
employee
Caution:
Special rules for unprotected strikes
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11 Fair reason – conduct
Further Reading & References
Du Toit et al: Labour Relations Law
[5th edn – 2006]
394 – 412
[6th edn – 2015]
442 – 461
31
Capacity
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11 Unfair Dismissal
2
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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11 Fair reason – capacity
Further Reading & References
Du Toit et al: Labour Relations Law
[5th edn – 2006]
412 – 422
[6th edn – 2015]
461 – 472
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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 Dismissal
Fair 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:
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job security – social good
enterprise – efficiency / competitiveness
Two-tier approach –
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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” –
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avoid use of word “retrenchment”
LRA s 213 – definition – “ETSOS”
ILO Convention 158/1982 art 4
Code of Good Practice
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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 use
ILO Convention 158
Broad 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 & objective
Generally 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 problems
Porter 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 regime
distinguish 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
undermined
Sikhosana 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 specified
Employer must allow other party –
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to make representations
respond to them
state reasons if there is disagreement
writing – respond it writing [evidence]
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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 information
Fundamental to process [evidence]
Chester Wholesale Meats v NIWUSA 2005 (LAC)
No absolute right –
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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 –
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forfeit when fair reason relates to conduct or
capacity – Comment: BCEA seems unfair
Reminder: - “notice” must always be given
BCEA s 41 read with s 84 and s 35
Policy 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 resolution
Introduction [1] (240)
Preference – resolve by agreement
Conciliation compulsory
Exceptions to rule –
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–
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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 resolution
Introduction [2]
Institutions – different roles –
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CCMA – s115 functions & s135 powers
Bargaining & statutory councils
Labour Court
Labour Appeal Court
Private arbitration important – accredited
agencies
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9 Dispute resolution
Introduction [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
Further Reading & References
Du Toit et al: Labour Relations Law
[5th edn – 2006]
89 – 176
[6th edn – 2015]
117 – 211
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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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9 Remedies (p 243)
Further Reading & References
Du Toit et al: Labour Relations Law
[5th edn – 2006]
468 – 477
[6th edn – 2015]
524 – 536
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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
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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
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•
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•
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
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–
–
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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
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Caution
Informal warning
Written warning
Final written warning
Suspension without pay
67
STEP VII:
SUMMARY TERMINATION
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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
68
STEP VIII:
CONSULTATION
• Continue investigation
• Consult with employee
• Try to reach consensus on:
– Notice pay
– Ex gratia payment
• Sign a settlement agreement if possible
69
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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