Employment dismissals are one of the most legally sensitive actions a South African employer can take. The Labour Relations Act requires that every dismissal be both substantively and procedurally fair. A failure on either ground can result in reinstatement or compensation of up to 12 months’ remuneration.
Substantive fairness: the reason for dismissal
Substantive fairness asks whether there is a valid reason for the dismissal. The three recognised categories are:
1. Misconduct
The employer must show that the employee committed misconduct serious enough to justify dismissal. Not all misconduct warrants dismissal — the sanction must be proportionate to the offence. A first-time minor transgression will rarely justify dismissal; repeated or serious misconduct (dishonesty, insubordination, violence) generally will.
2. Incapacity
Incapacity covers poor performance and ill health. For poor performance, the employer must show the employee was aware of the performance standard, failed to meet it despite being given a reasonable opportunity to improve, and that dismissal is an appropriate sanction.
3. Operational requirements (retrenchment)
Retrenchment requires a genuine operational requirement — economic, technological, or structural. The selection criteria must be fair and objective. Employers of more than 50 employees trigger the full section 189A consultation process.
Procedural fairness: the process
Even where the reason is valid, a flawed procedure will render the dismissal unfair. For misconduct dismissals, the standard procedure requires:
- A written notice to the employee specifying the allegations
- A reasonable opportunity to prepare a response
- A disciplinary hearing before an impartial chairperson
- The right to be represented by a fellow employee or union representative
- A written outcome communicated to the employee
CCMA referrals
An employee who believes their dismissal was unfair has 30 days from the date of dismissal to refer the dispute to the CCMA. Employers who do not respond properly risk a default award.
HvS Attorneys advises employers on disciplinary procedures, represents employers and employees at the CCMA, and drafts employment contracts and disciplinary codes. Speak to us before you take action.
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