Legal updates and opinions
News / News
Banking on a resignation with immediate effect? Don’t count on it!
by Sandile July, Director and Lisa Appelgryn, Senior Associate: Labour & Employment Practice
- The Labour Appeal Court (“LAC“) in the matter of Standard Bank of South Africa Ltd v Nombulelo Chiloane (case no. JA85/18) has clarified the issue of the effect of a resignation with immediate effect in the midst of a pending disciplinary hearing.
- The Constitutional Court, in the matter of Steenkamp & Others v Edcon Ltd (National Union of Metalworkers of SA intervening) made the following statement obiter:
“Except where summary dismissal is warranted, the unilateral act of the employer in terminating the contract, whether by notice or other conduct, does not without more bring an end to the contract of employment. The same applies to an employee who gives short notice in violation of the contract: he or she may be obliged to serve out the notice period. In neither case does the unlawful repudiation of the contract have to be accepted by the other party“. - The LAC relies on this obiter dictum and concludes that if the contract provides for a notice period, the party that seeks to withdraw from the contract must give or serve the requisite notice. The provisions of the Basic Conditions of Employment Act No. 75 of 1997 (“BCEA“) will apply in circumstances where the contract of employment does not make provision for a notice period.
- In light of the above, an employee will not be able to escape the disciplinary process by tendering a resignation with immediate effect. The essence of the judgement is that there exists no such thing as resigning with immediate effect in the employment context, unless the employer waives the notice period. Notice must be served or given either in terms of the contract of employment or in terms of section 37 of BCEA.
Latest News
Code Red to Code Regulated: South Africa’s Data, AI and Cybersecurity Shift in 2025, and What’s to Come in 2026?
by Armand Swart, Director, Hlonelwa Lutuli, Associate and Hanán Jeppie, Candidate Attorney South Africa's data protection, cybersecurity, and artificial intelligence [...]
The Gauteng school placements crisis (2026) – Why children are still waiting and what the law says
By Naledi Motsiri - Director and Nothando Nyoni - Associate As the 2026 school year begins, many parents in Gauteng [...]
The Introduction of a Dedicated Insolvency Court in Pretoria
by Eric Levenstein - Director and Head of Insolvency & Business Rescue and Amy Mackechnie - Senior Associate Following the [...]
Regulatory Snapshot: Financial Services and AML
by Hilah Laskov, Director In this article, we lay out the main regulatory and legal developments in 2025 that [...]
The Need to Plead Properly – Patel vs South African Securitisation Programme (RF) LTD & Others (790/2024) [2025] SASCA 186
by Jennifer Smit, Director On 8 December 2025, the SCA handed down a decision in the above matter which [...]
The union doth protest too much: NUMSA v BMW and the limits of court intervention in disciplinary proceedings
by Bradley Workman-Davies, Director The Labour Court’s judgment in NUMSA on behalf of Members v BMW (SA) (Pty) Ltd [...]
