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
Employment Equity Amendment Act Commencement – Important news for employers employing more than 50 employees
The President of the Republic of South Africa has recently proclaimed that the Employment Equity Amendment Act No.4 of 2022 [...]
Shell shock: reversal of landmark Dutch ruling holds lessons for South African climate change litigation
- Reviewer and Slade van Rooyen - Candidate Attorney The 2021 decision of a Dutch district court in Milieudefensie v [...]
A step closer to establishing the National Council on gender-based violence and femicide
After the President assented to the National Council on Gender-Based Violence and Femicide Act No. 9 of 2024 ("Act") in [...]
The Climate Change Act has a crucial role to play in the fight against the climate crisis in South Africa
and Mmatshepo Papo - Candidate Attorney Frequent and intense weather events and devastating effects of climate change are being experienced [...]
Stretching Boundaries: Can a Trade Union Represent Employees Who Fall Outside of its Registered Scope in Employment Disputes?
and Yendiswa Sithole - Candidate Attorney The Constitutional Court ("the CC") in AFGRI Animal Feeds (A Division of PhilAfrica Foods [...]
Working From Home: Can Employers Withhold Pay Over Office Attendance?
and Hanán Jeppie - Candidate Attorney ISSUE In National Union of Public Service and Allied Workers obo Cesiko / South [...]