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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
32 judgments
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32 judgments
Citation
Judgment date
December 2015
An employer cannot lawfully substitute a disciplinary chair’s final sanction; such substitution is invalid and substantively unfair.
Labour law – disciplinary procedure – where collective agreement or disciplinary code vests final sanctioning power in chair, employer may not substitute sanction; substitution without lawful authority is invalid and substantively unfair; racist workplace abuse is serious but mitigation must be considered.
8 December 2015
November 2015
Arrear wage claims under reinstated contracts can prescribe three years after the reinstatement order becomes executable.
Labour law – reinstatement – effect of retrospective reinstatement on entitlement to arrear wages – distinction between judgment debt and contractual wage claims. Prescription Act s 11(d) – arrear wages as 'any other debt' subject to three-year prescription. Prescription interruption and s 15(4) – prescription runs afresh when a judgment becomes executable. BCEA s 77(3) – Labour Court's concurrent jurisdiction to determine contractual claims arising from reinstated employment. Civil procedure – Labour Court Rule 22(5) – substitution of parties; deceased employees cannot themselves apply for substitution.
26 November 2015
A clause compensating the respondent for forfeited deferred equity was a recruitment incentive and survived termination.
Contract interpretation – recruitment v retention incentive; deferred equity compensation; whether payment conditional on continued employment; survival of accrued contractual rights after rescission; Endumeni principles applied.
17 November 2015
Arbitration awards under the LRA are debts subject to a three‑year prescription; reviews do not interrupt prescription, but making an award an order of court does.
Prescription — arbitration awards under the LRA are "debts" under the Prescription Act and generally prescribe after three years; debt due on delivery of award; certification for enforcement does not delay prescription; application to make award an order of court interrupts prescription on service and must be prosecuted to final judgment; review application does not interrupt prescription; s145(9) LRA (post-1 Jan 2015) now provides interruption for later awards.
6 November 2015
October 2015
Reported
Unwelcome verbal sexual advances amounted to workplace sexual harassment; dismissal was a fair sanction.
Labour law – Sexual harassment – Unwelcome verbal sexual advances outside working hours related to workplace – Single non-physical incident can constitute harassment; Codes of Good Practice and power differentials (age/gender) relevant – Sanction: dismissal may be fair where seriousness, lack of remorse and rehabilitation prospects justify it – Review: commissioner’s factual findings upheld as reasonable.
23 October 2015
A sham asset transfer cannot be treated as a lawful scheme to avoid winding‑up under s197A; appeal dismissed with costs.
Labour law – s197A LRA – transfer pursuant to scheme/compromise to avoid winding‑up – genuine purpose required; mere labelling insufficient. Company and contract law – simulated transactions/in fraudem legis – court may examine substance over form. Interpretation – whether s197A extends to non‑s311 compromises left open where sham is present.
21 October 2015
The respondent failed to show a s197 transfer because essential assets and systems were not transferred to the applicant.
Labour law – s197 LRA – transfer of business as a going concern – Spijkers/Oy Liikenne factors (assets, employees, customers, intangibles, continuity); Administrative law – Oudekraal/Kirland: administrative acts remain effectual until set aside; Burden of proof – respondent must establish on probabilities that the entity retained its identity.
21 October 2015
Reported
Senior employee's secret receipt and non‑disclosure of benefits from service providers constituted dismissible dishonesty; dismissal was fair.
Labour law – dismissal for misconduct – non‑disclosure of gifts and benefits from service providers; workplace dishonesty and breakdown of trust; procedural fairness in disciplinary hearings; review of arbitration awards – Sidumo/section 145 reasonableness and gross irregularity; employer Code of Ethics and Gifts policy – sanction of dismissal justified for serious dishonesty.
5 October 2015
August 2015
Reported
Dismissal at age 64 was automatically unfair and discriminatory; single just-and-equitable solatium awarded for dignity impairment, EEA damages not proven.
Labour law – automatically unfair dismissal (age) under s187 LRA; Employment Equity Act – age discrimination under s6; Concurrent remedies – pursuing LRA and EEA claims in one action; Compensation under LRA as solatium (non‑patrimonial) v damages under EEA; Single just and equitable award to avoid double recovery; Proof of patrimonial loss required for EEA damages.
21 August 2015
July 2015
Reported
Section 200A presumption requires a contract/contractual arrangement; voluntary pastoral service without contractual intent is not employment.
Labour law — jurisdiction of CCMA — who is an employee — interpretation of s200A LRA ("regardless of the form of the contract") — requirement of a contract or contractual arrangement — voluntary religious ministry versus employment.
28 July 2015
Arbitrator’s reinstatement of employee upheld where circumstantial evidence did not prove collusion.
Labour law – review of arbitration award – drawing inferences from circumstantial evidence – primary facts must be proved before inferring collusion; weight and reliability of video and polygraph evidence; standard of review in labour arbitration; reinstatement as primary remedy for unfair dismissal.
22 July 2015
Reported
Whether employees accepted an offer to retain lower wages determined fairness of their retrenchment.
Labour law – dismissal for operational requirements – whether employees accepted employer's reasonable offer to retain them at prior wage – evidentiary onus and admissibility of hearsay – relevance of contemporaneous notes and conduct in assessing acceptance/refusal.
2 July 2015
June 2015
Strike to reverse unilateral wage cuts for specific employees protected; broad wage-increase demands affecting costs fall under collective bargaining.
Labour law – strike protection – interpretation of prior appellate judgment – distinction between undoing unilateral reductions (protected) and substantive wage increases affecting employer costs (subject to collective bargaining); condonation for inordinate delay in prosecution of appeal.
25 June 2015
Employee failed to prove constructive dismissal: employer took reasonable steps, commissioner ignored material evidence, CCMA lacked jurisdiction.
Labour law – Constructive dismissal – test requiring termination by employee, intolerability of continued employment, and causation by employer – jurisdictional fact for CCMA – commissioner’s duty to weigh evidence and not ignore material contradictory testimony – review where findings irrational.
24 June 2015
Collective agreement did not bar a strike on company‑level demands absent proof those issues were negotiated nationally.
Labour law — right to strike — limitation by collective agreement (s65(3)(a) LRA) — interpretation of Framework Agreement clause 8.5 and Memorandum clause 12 — onus on employer to show issue was negotiated nationally; inference insufficient to displace onus — stay pending CCMA not automatic where not sought below.
24 June 2015
Application dismissed where genuine disputes of fact required oral evidence and applicants failed to seek it.
Labour/employment — Authority to contract — Acting CEO’s authority to conclude fixed-term contracts without Board approval — internal moratorium and non-compliance with HR and procurement policies — Turquand rule and ostensible authority inapplicable absent proof — Civil procedure: Plascon-Evans/Wightman — genuine disputes of fact in motion proceedings require oral evidence or dismissal.
24 June 2015
s191(5) LRA triggers arbitration/right to adjudicate on either a certificate or 30‑day lapse; delayed referral required condonation.
Labour law – dispute resolution – interpretation of s191(5) LRA – jurisdictional trigger either certificate of non‑resolution or lapse of 30 days; ss135/136 distinct and not applicable to s191 disputes; reasonable referral period to arbitration is 90 days; condonation required for later referrals.
24 June 2015
A zero‑tolerance policy does not justify dismissal for a single failure to declare low‑value goods without proportionality.
Labour law – fairness of dismissal – appropriateness and proportionality of sanction for failure to declare/cancel personal goods; Zero‑tolerance policies – not absolute; must be justified by circumstances; Distinction between failure to cancel and theft; Review of CCMA awards – unreasonable outcomes removable on review.
24 June 2015
CCMA had jurisdiction; foreign office was not a separate undertaking and commissioner reasonably found dismissal substantively unfair.
Labour law – territorial jurisdiction of the LRA – CCMA jurisdiction where employee serves in overseas office of South African statutory employer; Astral/Genrec Mei: foreign office must be separate and divorced undertaking to exclude LRA. Arbitration procedure – jurisdiction assessed on pleadings; mero motu jurisdictional reviews discouraged. Evidence – civil standard for fraud/dishonesty: misrepresentation, prejudice, intention; absence of unequivocal guilty plea. Review – commissioner’s factual findings and sanction within band of reasonableness.
11 June 2015
Reported
Non‑disclosure misconduct requires actual, deliberate knowledge of colleagues' wrongdoing; personal finances alone do not suffice.
• Labour law – derivative misconduct – non‑disclosure – requires actual, subjective knowledge and deliberate silence by employee. • Duty of good faith – breach requires proof of actual knowledge of colleagues' wrongdoing, not mere suspicion or constructive knowledge. • Personal financial information is not necessarily information about criminal wrongdoing and cannot alone ground a non‑disclosure misconduct finding. • Remedy – where dismissal is substantively unfair and no credible basis for dishonesty is shown, reinstatement with back pay is appropriate.
3 June 2015
May 2015
Reported
Employer's failure to advise and compassionately assist an ill employee rendered continued employment intolerable; appeal dismissed.
Labour law – constructive dismissal – employer's failure to advise on extended sick leave and treating certified sick absence as unauthorised – objective test for constructive dismissal – reasonableness review of arbitration award.
12 May 2015
Reported
A reinstatement order revives the employment contract but does not automatically entitle payment for the post-award-to-implementation period.
Labour law — reinstatement orders — effect and temporal scope; whether reinstatement entitles employee to post-award-to-implementation remuneration; enforcement — limits of writs of execution and inadvisability of registrar quantification by affidavit; contractual claim for interim wages; employer becomes judgment debtor only after adjudication.
5 May 2015
Reported
An employer may lock out employees, including non‑party union members, where a bargaining‑council deadlock affects their interests.
Labour law – Strikes and lock-outs – procedural notice requirements under s64 LRA; Motion proceedings – Plascon-Evans rule and when oral evidence is required; Bargaining councils – majoritarian principle and binding effect on non-party members (s32 extension); Lawfulness of locking-out members of a non-party union who have a material interest in the dispute.
5 May 2015
Reported
An arbitration award is published to each party when that party actually receives it; time limits are peremptory and must be proved.
Arbitration – Arbitration Act 42 of 1965 – Publication of award – where award not delivered in presence of parties, publication is when each party receives it; statutory presumption in s25(2) does not apply. Review – time limit – six weeks for review under s33(2) – computed by civil method (exclude first day); peremptory time limit requiring condonation if late. Procedure – onus to prove timely institution lies initially with applicant; assumptions of simultaneous receipt cannot be elevated to facts. Remedies – where publication date uncertain court may remit to arbitrator to deliver award in presence of parties.
5 May 2015
April 2015
Reported
Whether a valid, consulted employment equity plan lawfully justified a non‑promotion under affirmative action.
Employment equity – affirmative action – existence and consultation of Employment Equity Plan – representivity and numerical goals – implementation must be rationally related to plan (Barnard; Van Heerden) – promotion decision justified where plan legitimate and applied rationally.
24 April 2015
Automatic termination clauses tied to client contracts cannot circumvent LRA protections; dismissal fair where employee refused offered alternative.
Labour brokers; automatic-termination clauses in employment contracts; validity under LRA s5 and s198 amendments; proximate-cause test for dismissal; operational-requirements retrenchment and offers of alternative employment; forfeiture of severance where alternatives unreasonably refused.
17 April 2015
Reported
Failure to consider mandatory regional demographics rendered the equity plan defective, but individual promotion remedies were not proved.
Employment equity – affirmative action v quotas – numerical targets and preferential treatment permissible under EEA s15 if flexible; quotas prohibited; s9(2) van Heerden test applied; s42 (then mandatory) requires regional and national demographics to be considered; individual remedies require specific causal evidence.
10 April 2015
March 2015
Reported
An appeal to interdict a bargaining council became moot after the Minister granted the extension; appeal dismissed.
Labour law — Mootness — Interdict seeking to prevent bargaining council requesting extension of collective agreement overtaken by events. Administrative law — Proper challenge to Minister's extension under s32(3) is by direct review of the Minister's decision. Res judicata/issue estoppel — Not established; causes of action and relief in the proceedings are distinct. Discretion to decide moot cases — Refused where a comprehensive pending review addresses the same legal questions.
26 March 2015
Reported
Non-compliance with section 189A timelines does not automatically render ensuing dismissals invalid; statutory remedies apply.
Labour law – large-scale retrenchment – interpretation of section 189A(2)(a) and 189A(8) – consequence of non-compliance. Remedies for procedural non-compliance – section 189A(9) (retaliatory strike) and section 189A(13) (urgent court relief). Statutory construction – whether procedural breaches attract automatic nullity. Precedent – De Beers and Revan principle overturned.
3 March 2015
January 2015
Reported
Employer failed to properly investigate alternative placement before dismissing employee for incapacity; appeal dismissed with costs.
Labour law – dismissal for incapacity – employer’s onus to prove substantive and procedural fairness – duty to investigate alternatives short of dismissal (Code of Good Practice items 10 and 11; Sick Absence Control Procedures) – admissibility and weight of internal inquiry minutes and medical evidence – remit for fresh arbitration where commissioner unreasonably ignored material evidence.
22 January 2015
Reported
CCMA may not assume jurisdiction over bargaining-council disputes without a s 147 management decision.
Labour law – CCMA jurisdiction – s 147 LRA – where dispute falls within bargaining council scope, CCMA or its delegate must decide to refer or confirm appointment before arbitration proceeds. Jurisdictional rulings by commissioners are preliminary and reviewable; commissioners may not unilaterally assume CCMA jurisdiction. Default awards are not final for purposes of s 147; rescission applications and jurisdictional decisions remain subject to review.
15 January 2015
Reported
A dispute finally determined by a bargaining council cannot later be reheard by the CCMA.
Labour law – jurisdiction – s 147(2) & (3) LRA – where dispute referred to and finally determined by a bargaining council, CCMA lacks jurisdiction to rehear; rule against collateral challenges and exceptio res judicata bar re-litigation; Labour Court obliged to decide jurisdiction mero motu.
15 January 2015