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
Supreme Court of Appeal clarifies boundaries between casino and bookmaker licences in the Gauteng province
by Wendy Rosenberg - Director, Tebogo Sibidla - Director and Nothando Madondo - Associate In recent years, the number of [...]
Financial sector evolution: a snapshot of what’s to come
by Natalie Scott - Director and Justin Duarte - Candidate Attorney The horizon of the financial sector is one coloured [...]
Delivering notices to shareholders: it’s time for companies to consider more efficient and cheaper methods
by Brendan Olivier - Director Company secretaries and corporate legal advisors will know the difficulties, time and costs involved, when [...]
Cracking Down or Catching Up? South Africa’s Approach to Crypto Regulation: Part 3 – Exchange Control
by Armand Swart - Director - Deon Griessel, Hilah Laskov - Director and Hlonelwa Lutuli - Associate Introduction Crypto assets [...]
Defamation in Labour Law – Manqele V Baloyi Masango Inc Attorneys and Others (896/2023) [2025] Zampmbhc 75 (12 August 2025)
by Bankey Sono, Director and Neo Sewela, Senior Associate It is not unusual for employers to appoint a law firm [...]
Voluntary liquidations: A cost effective and efficient method of conducting a corporate clean-up, and for ending the existence of dormant companies
by Brendan Olivier Quite understandably, the word 'liquidation' can send shivers down the spine, and cause a company director to [...]
