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Labour Appeal Court of South Africa

The Labour Appeal Court is a South African court that hears appeals from the Labour Court. The court was established by the Labour Relations Act, 1995, and has a status similar to that of the Supreme Court of Appeal.It has its seat in  Johannesburg but also hears cases in  Cape Town, Port Elizabeth and Durban.

Physical address
86 Juta Street, Arbour Square Building, 6th and 7th Floors, Corner Juta and Melle Streets, Braamfontein 2001
56 judgments
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56 judgments
Citation
Judgment date
December 2014
Reported
Owner-driver empowerment contracts were independent contractor agreements, rebutting section 200A and depriving the arbitrator of jurisdiction.
Labour law – employee v independent contractor – section 200A presumption – owner-driver empowerment scheme – jurisdiction of bargaining council – standard of review for jurisdictional findings.
18 December 2014
A contractual pro rata profit-share is a liquidated debt payable with prescribed mora interest.
Employment law – contract interpretation – profit-share clause – "pro rata portion" construed as proportion of annual 3% EBIT based on audited financial statements; Prescribed Rate of Interest Act – liquidated vs unliquidated debt – entitlement to mora interest from date amount ascertainable (or from demand under s2A); Appeal procedure – inadmissibility of belated defences and fresh evidence on appeal.
18 December 2014
Dismissal for accepting and failing to declare a supplier's favour upheld as substantively fair; Labour Court misapplied Sidumo review test.
Labour law – dismissal for breach of gifts/hospitality/favours policy – acceptance and failure to declare favour from supplier’s representative – inference of dishonesty from inconsistent explanations and non-disclosure – Sidumo review standard; Herholdt and Goldfields on reasonableness of arbitration awards – zero-tolerance policies and appropriate sanction.
15 December 2014
Expiry of a fixed-term training contract and refusal to accept employer‑determined placement do not constitute dismissal.
Labour law – fixed-term training contract – effluxion of time vs dismissal; employer's right to determine placement on permanent appointment; refusal to sign offer and repudiation; review of arbitration award on factual findings.
12 December 2014
Reported
Issue estoppel resisted on fairness; strike was refusal to bargain (unprotected) and dismissals were fair, appeal dismissed.
Labour law – strike action – distinction between wage disputes (s64(1)) and refusal-to-bargain disputes (s64(2)) – requirement for advisory award before protected strike in refusal-to-bargain matters; issue estoppel/res judicata – equity and fairness when prior interlocutory orders are relied upon to bar later unfair dismissal claims; dismissal for participation in unprotected strike – substantive and procedural fairness.
12 December 2014
Reported
Dismissal found unfair where commissioner misconceived insubordination, ignored unlawful salary deduction and failed to apply Code of Good Practice.
Labour law – dismissal for misconduct v incapacity – distinction between insolence and insubordination; unlawful unilateral deductions (BCEA s34) as provocation; Code of Good Practice – requirements before dismissal for poor performance; review of arbitration award for misconceived inquiry and unreasonable result; impermissibility of relying on reasons not advanced at dismissal.
12 December 2014
The appellant was not bound by MD102 because no contract, authority, or required approvals existed.
Management directive – alleged contract arising from meeting – proposals versus concluded agreement; early retirement affecting pension rights – interest dispute requiring recognition-agreement and pension-fund approvals; authority to bind employer – actual and ostensible authority; Turquand rule inapplicable where claimant aware internal procedures unresolved.
10 December 2014
Dismissal for operational requirements unfair where employer failed to consider alternatives (e.g. reducing contractors); reinstatement ordered.
Labour law – Retrenchment and operational requirements – Substantive fairness – Employer’s duty to consider alternatives under s189A(19) – Outsourcing/contractors – Dismissal as last resort – Objective review of employer’s rationale – Reinstatement remedy.
10 December 2014
Reported
An employee who is a union member is entitled to union representation at arbitration despite employer's objections to membership.
Labour law – right to trade-union representation at arbitration – scope of union constitution and membership – purposive interpretation of CCMA Rules and LRA – employer's late objection/involvement in conciliation.
3 December 2014
November 2014
A settlement made an order of court may remain a collective agreement and is subject to LRA dispute procedures.
Settlement agreements – where made orders of court – do not automatically render all contractual terms enforceable by contempt; only clear, certain and executable provisions should be treated as court orders; collective agreements fall under LRA dispute-resolution (s24(8)); collective agreements for indefinite periods may be terminated on reasonable notice (s23(4)); courts should distinguish between orders of court and contracts.
27 November 2014
Reported
Claim for backpay after alleged post upgrade failed—no proven incumbency and arbitrator’s award unreasonable.
Unfair labour practice – promotion/upgrade – entitlement to incumbency and back pay; ministerial approval and Occupation Specific Dispensation (OSD) – effect on upgrades; dispute of right v. dispute of interest – jurisdiction to arbitrate; review for unreasonableness – award irrational where factual prerequisites for entitlement not proven.
25 November 2014
Reported
An arbitrator’s late jurisdictional ruling without allowing reply and absent an agreed stated case is reviewable and the award set aside.
Labour arbitration — procedure — stated case: parties wishing to proceed without oral evidence must agree a written stated case setting out agreed facts, legal questions and contentions Arbitration — jurisdiction: a jurisdictional point raised for the first time in post‑hearing heads must not be decided without giving the other party an opportunity to respond Review — section 145 LRA and constitutional administrative fairness: an arbitrator’s procedurally unfair conduct is reviewable and may lead to setting aside of an award
6 November 2014
October 2014
Reported
Parity principle applied with caution; dismissal for gross dishonesty by a senior financial broker was substantively fair.
Labour law – disciplinary consistency (parity principle) – review for reasonableness under s145 LRA – gross dishonesty by senior financial representative – fiduciary duties and FAIS obligations – irreparable breakdown of trust – sanction of dismissal upheld.
24 October 2014
Reported
A deeming clause supplemented "termination of employment" for bonus purposes; the restraint was triggered by actual termination and is enforceable.
Restraint of trade; retention bonus; deeming clause; interpretation of "termination of employment"; distinguishing retention and restraint; enforcement by assignee; restraint triggered by actual termination (waiver of notice).
23 October 2014
Reported
Whether pay disputes requiring interpretation of a collective agreement fall within Labour Court jurisdiction or must be referred under the LRA.
Collective agreements – Interpretation and primacy – disputes centrally about meaning of collective agreement clauses fall under s24 of the LRA and must be referred to agreed dispute body or CCMA; BCEA s77(3) – concurrent jurisdiction does not displace LRA dispute-resolution where collective agreement interpretation is pivotal; Labour Court jurisdiction – determined from pleadings and real nature of dispute; No work, no pay – s67(3) LRA applied to full-time shop-stewards when duties cannot be performed during strike; Full-time shop-stewards – paid on fiction of performing substantive duties; entitlement to pay during strike depends on whether duties were capable of performance.
23 October 2014
Reported
Arbitrator unreasonably ignored material evidence; proper inference was that employee knowingly assisted in tampering, so dismissal confirmed.
Labour law – review of arbitration award – inferential reasoning and evaluation of all evidence and probabilities – failure to consider material evidence renders an award unreasonable; discipline – tampering with exhibits and defeating the ends of justice; procedural fairness – fitness to participate and representation; sanction – dismissal appropriate where guilt on related serious charges established.
23 October 2014
Adverse inference from employee’s refusal to answer was permissible and supported a reasonable finding of fair dismissal.
Labour law – arbitration review – alleged failure to warn of adverse inference – adverse inference from silence permitted where witness and representative understood implications; assessment of circumstantial evidence and reasonableness of dismissal on balance of probabilities; deference to commissioner’s factual findings.
23 October 2014
Reported
Authorised acceptance and communicated approval of early-retirement application meant no dismissal occurred; appeal dismissed with costs.
Labour law – application for early retirement – acceptance by authorised official – communication of acceptance – when termination occurs; constructive dismissal – burden to prove dismissal; jurisdiction of bargaining council contingent on existence of dismissal.
23 October 2014
Labour Court erred by treating review as an appeal; commissioner’s dismissal decision was a reasonable outcome on the evidence.
Labour law — Review of arbitration awards — Sidumo/HERHOLDT test — Distinction between review and appeal — Reasonableness threshold for setting aside commissioner’s award on sanction; factors relevant to fairness of dismissal (nature of misconduct, effect on employer-client relationship, prior warnings, remorse).
21 October 2014
Reported
Arbitrator’s undisclosed co‑ownership and shared premises with a contractor to the employer gave rise to reasonable apprehension of bias; proceedings voided.
Labour arbitration — review for reasonable apprehension of bias — duty of arbitrator to disclose interests or relationships with a party — two‑stage test (subjective capacity for dispassion; objective reasonable‑litigant test) — failure to disclose may cast evidentiary light on bias — where recusal was required, proceedings vitiated and full rehearing necessary.
21 October 2014
Reported
Repeated re‑charging and coercion by the employer rendered the relationship intolerable, causing constructive dismissal.
Labour law – constructive dismissal – resignation due to intolerable work environment caused by employer’s conduct – repeated disciplinary proceedings on same charge; Disciplinary procedure – fairness of second disciplinary enquiry on same allegations – only justified in exceptional circumstances; Employer culpability – repeated coercion and re‑charging can constitute repudiatory conduct.
16 October 2014
Reported
Reneging on a settlement re‑employment on prior terms constitutes dismissal and may justify compensation.
Labour law – dismissal – s186(1)(a) – re‑employment pursuant to settlement; dismissal where employer presents different terms and withdraws offer; CCMA jurisdiction; unfair dismissal – substantive and procedural fairness; remedy – reinstatement versus compensation; Kemp distinguished where post‑dismissal offers are not genuine unconditional reinstatement offers.
7 October 2014
Good cause is an independent ground for rescission of a CCMA award; commissioner and Labour Court misapplied section 144.
Labour law – Rescission of CCMA arbitration awards – Interpretation of s144 LRA – "Good cause" an independent ground for rescission. Administrative law – Review – failure to apply mind to an important principle of law (good cause) constitutes reviewable irregularity Procedure – Test for rescission – explanation for default and prima facie prospects of success to be weighed together. Rule compliance – bona fide attorney mistake and service of postponement application may constitute good cause Appeals – condonation for late filing where delay is not excessive and prospects of success exist
7 October 2014
Reported
Arbitrator misconceived PAM provisions on upgraded principal posts; SGB recommendation not binding and award set aside.
Labour law – unfair labour practice relating to promotion on re-grading of institution – PAM Chapter B para 2.5 and ELRC Resolution 3 – upgraded principal post treated as new vacant post – SGB recommendation permissive not binding – arbitrator’s failure to apply mind to collective agreement material leads to unreasonable outcome and reviewable award under LRA s145.
1 October 2014
September 2014
Reported
The respondent may seek Labour Court review of state‑as‑employer disciplinary determinations; inadequate sanction substituted with dismissal.
Labour law – s158(1)(h) LRA – review of State‑as‑employer disciplinary decisions; Administrative law – PAJA applicability and common‑law review of contractual disciplinary tribunals; Constitutional principle of legality and rationality as grounds of review; Employer locus standi to review presiding officer’s sanction; Sanction review – irrationality and proportionality leading to substitution with dismissal.
25 September 2014
Arbitrator’s unresolved factual disputes did not render award unreasonable; SMSes ineffective, dismissal within reasonable range.
Labour law — review of arbitral awards — section 145 LRA — gross irregularity — unresolved factual disputes — reasonableness standard; escalation procedures — communication requirements — SMS versus telephone; fairness of dismissal — sanction within band of reasonable outcomes.
10 September 2014
August 2014
Where mutually destructive versions exist, a commissioners award that reasonably prefers employees version and orders reinstatement will not be set aside.
Labour law - review of arbitration award - Sidumo reasonableness test; mutually destructive versions - evaluation of credibility, reliability and probabilities; picketing code and lawful picketing; substantive fairness of dismissals arising from strike conduct; reinstatement as primary remedy and proof required for breakdown of trust.
19 August 2014
Absence without permission exceeding one month triggers dismissal by operation of law under s17(5)(a)(i), ousting council jurisdiction.
Public Service Act s17(5)(a)(i) – termination by operation of law – abscondment (absence without permission exceeding one month) – effect on bargaining council jurisdiction – suspension lifted and lawful deployment.
19 August 2014
A union's locus standi can be raised at any stage, but claimants failed to prove an alleged oral overtime agreement.
Civil procedure – locus standi – point of law may be raised at any stage of proceedings. Labour law – collective bargaining – a registered union has authority to represent members in negotiations Contract – oral agreement – plaintiff must prove date, parties and terms to avoid absolution from the instance. Absolution from instance – court may draw reasonable inferences from documentary and common‑cause facts
19 August 2014
Reported
The 90-day LRA limit applies to EEA referrals; condonation granted given explained delay and arguable prospects.
Employment Equity Act – referral to Labour Court after unsuccessful conciliation – applicability of 90-day LRA time limit; Calculation of time – runs from date of CCMA outcome certificate, not from later jurisdictional ruling at arbitration; Condonation – Melane factors (degree of lateness, explanation, prospects of success, importance) applied; Unfair discrimination under EEA – employer bears onus to prove fairness; Employment equity policy/plan – absence of plan and bare assertions of compliance do not permit dismissal at condonation stage.
14 August 2014
Reported
A new service provider’s takeover of warehousing operations using the same premises, assets and systems triggered s197 protection.
Labour Law – s197 LRA – transfer of business as a going concern – service provision change (outsourcing/retendering) – when a change of contractor triggers s197. Factors relevant to transfer – assets, premises, IT systems, continuity of activity, identity of economic entity, employees. Group companies – formal employer vs de facto employer – cannot be used to evade s197. Absence of a written contract does not bar s197 where substance shows takeover of business activity
6 August 2014
July 2014
Reported
The applicant failed to prove voluntary retrenchment; respondents were automatically unfairly dismissed for union membership.
Labour law – dismissal v voluntary retrenchment – when failure to sign retrenchment agreement means dismissal; automatic unfair dismissal – dismissal for union membership (s5, s187 LRA); effect of banking retrenchment payments – waiver/acceptance; scope of pre-trial minute – issues raised in pleadings; reinstatement as primary remedy and effect of delay.
23 July 2014
Failure to apply agreed LIFO and consider bumping rendered the retrenchment substantively unfair; reinstatement ordered.
Labour law – retrenchment – selection criteria – collective retrenchment agreement binds parties; deviations require justification and written variation. LIFO and bumping – bumping is part of LIFO and must be considered/consulted on unless validly excluded. Procedural duty – employer must consult regarding bumping and justify non-application. Substantive fairness – failure to apply agreed criteria fairly renders dismissal substantively unfair
22 July 2014
June 2014
Employer’s failure to process incapacity applications and excessive salary recoveries constituted constructive dismissal; reinstatement was ordered.
Labour — Constructive dismissal (s186(1)(e)) — Employer’s failure to process incapacity/retirement applications; unreasonable recovery of alleged overpayments; cumulative employer conduct rendering continued employment intolerable; reinstatement permissible where intolerable conditions no longer exist; review of arbitration award — Herholdt unreasonable‑result test.
26 June 2014
Reported
A trade union cannot be held in contempt absent clear, specific interdict obligations and proof of its own wilful breach.
Labour law – contempt of court – trade union – unprotected and violent strike – proof required to hold juristic person in contempt – distinction between vicarious liability for members' acts and direct breach by union – requirement of clear, specific interdict terms and proof beyond reasonable doubt.
12 June 2014
The applicant’s environmental disclosure to the media was protected under the PDA and NEMA and did not render the employment relationship intolerable.
Labour law – unfair dismissal – remedy – reinstatement is primary remedy; whistleblowing – protected disclosure under Protected Disclosures Act and NEMA; disclosure to media does not automatically render employment relationship intolerable; review of arbitration award where commissioner disregards material evidence.
12 June 2014
Collective bargaining cannot validate unfair age-based pay and rank discrimination; employer liable, compensation limited to equitable solatium.
Employment Equity Act – age discrimination – collective agreement cannot justify unfair discrimination; employer bears onus to prove fairness. Inherent job requirement – employer must prove age is an inherent requirement; fitness, not age, is material for pilots Remedies under EEA – 'damages' (patrimonial loss) distinguished from 'compensation' (solatium); awards must be just and proportional. Labour Court sitting as arbitrator (s158(2)(b) LRA) – decisions are orders/judgments appealable to LAC. Unfair labour practice – improper use of accumulated leave pay to remunerate employee without consent
12 June 2014
Reported
An employer may not unilaterally define collective-agreement 'speciality' posts; arbitrator may assess fairness and order translation.
Collective agreements – interpretation and application – employer cannot unilaterally define terms absent express authority; arbitrator empowered to interpret and assess fairness. Labour law – Occupational Specific Dispensation for nurses – clause 3.2.5.3 – translation to speciality stream where nurses permanently occupy and performed speciality duties satisfactorily Public Service Act – delegated managerial prerogative cannot override collective agreements or arbitration powers Evidence – interdisciplinary testimony (medical specialist) admissible to determine nature of nursing functions
5 June 2014
May 2014
Section 144 must include ‘good cause’; commissioners must assess explanation and prima facie defence for rescission.
Labour law – Labour Relations Act s144 – Rescission of default arbitration awards – s144 to be interpreted to include ‘good cause’ – Commissioner must consider explanation for default (reasonableness and bona fides) and prima facie defence – Binding precedent: Shoprite Checkers – Failure to consider good cause and prospects of success vitiates decision.
30 May 2014
Reported
Termination/handover that transfers assets, systems and continuity of services triggers s 197 and transfers employees to the new employer.
Labour law – s 197 LRA – transfer as going concern – substance over form; factors: transfer of tangible/intangible assets, personnel, customers and continuity of activity – holding/interim operation does not avoid s 197 – application of Aviation Union and NEHAWU tests.
29 May 2014
Reported
27 May 2014
Refusal to allow rebuttal witness to contradict a party’s own adverse witness was an unreasonable, material irregularity.
Labour law – Arbitration – material irregularity – Commissioner’s refusal to allow rebuttal evidence to contradict party’s own witness – unreasonable exercise of discretion – review under s145(2)(a)(ii) LRA – award set aside and remitted for hearing de novo.
16 May 2014
Reported
Arbitrator’s finding of managerial gross negligence upheld; late inconsistency claim refused; appeal dismissed with costs.
Arbitration review – Sidumo standard – reasonable outcomes; Managerial duty and gross negligence – obligation to exercise managerial judgment and proper monitoring; Procedural fairness – pre-hearing minute limits scope; Late introduction of new grounds (inconsistency) may be refused where prejudicial; Inconsistency defence requires comparable misconduct and roles; Appeal cannot raise new grounds not argued in review court.
15 May 2014
Reported
Polygraph results alone, without expert validation, are insufficient to prove misconduct; reinstatement accordingly appropriate.
Labour law – unfair dismissal – onus to prove misconduct on a balance of probabilities – circumstantial evidence must point to the most probable inference Evidence – polygraph tests – not self-sufficient; require expert evidence to establish conceptual cogency and accurate application before being given substantive weight Remedy – reinstatement is primary; intolerability/impracticability to displace reinstatement demands high threshold Review – whether arbitrator’s outcome was one a reasonable arbitrator could not reach
13 May 2014
Reported
Employer's failure to prevent landlord excluding pregnant employees amounted to repudiation and an automatically unfair dismissal.
Labour law; dismissal — denial of workplace access by landlord security; employer's duty to accept tender of services; repudiation of employment contract; pregnancy discrimination; s187(1)(e) LRA; unenforceability of landlord-imposed discriminatory code where employee not bound.
13 May 2014
The applicant's unexplained refusal to reinstate deemed-dismissed employees was irrational and unlawful.
Public Service Act s17(3)(a)(i) deemed dismissal; s17(3)(b) discretionary reinstatement — reviewable under s158(1)(h) LRA on principle of legality; requirement of rationality and provision of reasons; condonation for delay where explanations satisfactory; medical incapacity may constitute good cause for reinstatement.
13 May 2014
March 2014
Reported
Arbitrator’s failure to consider material evidence rendered reinstatement unreasonable; dismissal for dishonesty upheld on review.
Labour law – dismissal for dishonesty – substantive fairness – use of indicia (e‑mails, experience, timing, admissions) to infer knowledge and intent. Arbitration awards – review – commissioner’s failure to take into account matters of great significance – award unreasonable and reviewable Procedural – condonation for late filing and non‑compliance with court rules
27 March 2014
Reported
Labour Court lacked jurisdiction to join employers not conciliated as required by section 191 of the LRA.
Labour law – s191 LRA – statutory conciliation prerequisite for dismissal disputes; jurisdictional consequence of non‑conciliation; Labour Court Rules cannot override statutory preconditions; joinder (Rule 22(2)(a)) – requirement of a direct and substantial interest; condonation for late referral and failure to review refusal.
26 March 2014
Labour Court lacks jurisdiction where the applicant expressly denies being an employee.
Labour Court jurisdiction – s157 LRA – limits to disputes for which LRA provides remedies – Gcaba interpretation; non-employee disputes outside Labour Court jurisdiction; arbitration clause and jurisdictional questions; professional footballer registration and validity of power of attorney; McCarthy distinguished.
12 March 2014
Reported
An unsigned drafting‑team draft cannot bind parties where the constitution requires formal committee decision and signatures.
Collective agreements – formation – whether informal drafting‑team decisions bind parties where constitution prescribes formal bargaining‑committee decision and signatures; Practice and custom – cannot override clear constitutional requirements without evidence of well‑entrenched practice; Rectification – requires proof of prior concluded agreement/common intention and that written record fails to reflect it; Signature/formality – parties’ conduct treating signature as constitutive of binding agreement is decisive.
4 March 2014