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
Putting the cart before the horse – the potential unconstitutionality of the Expropriation Bill
The Expropriation Bill B3-2020 South Africans have recently been presented with the Expropriation Bill B3-2020 ("the Bill"). While the Bill [...]
What you need to know about the Expropriation Bill and where it came from
by Thomas Karberg, Candidate Attorney reviewed by Bulelwa Mabasa, Director and Head of Land Reform Restitution & Tenure Practice Introduction [...]
Green shoots which may reignite the Renewable Energy Industry
by Nozipho Bhengu, Director In line with the Ministerial Determination issued under section 34 of the Electricity Regulations and concurred [...]
Why Government should accelerate the establishment of an independent system and market operator?
By Nozipho Bhengu, Director and Tsebo Masia, Associate On 15 February 2021, the CEO of Eskom SOC Limited ("Eskom"), Mr [...]
Draft Amendments to the Pension Funds Act 24 of 1956: The Highlights
by Natalie Scott, Director and Kyra South, Associate On Friday, 26 February 2021, the National Treasury released a Media Statement regarding the [...]
Urgent update: extension of COVID-19 Temporary Employer / Employee Relief Scheme (“Ters”)
Urgent update: extension of COVID-19 Temporary Employer / Employee Relief Scheme ("Ters") On 28 February 2021 President Cyril Ramaphosa announced [...]
